EN BANC

AASJS (ADVOCATES AND ADHERENTS OF SOCIAL JUSTICE FOR SCHOOL TEACHERS AND ALLIED WORKERS) MEMBER HECTOR GUMANGAN CALILUNG, Petitioner, - versus THE HONORABLE SIMEON DATUMANONG, "# $"% o&&"'"() '(*('"+, (% +$- S-'.-+(., o& J/%+"'-, Respondent.

G.R. No. 160 6!

Promulgated:

May 11, 2

01 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10

DECISION 2UISUMBING, J.: "#is is an original a$tion %or pro#i&ition under Rule '( o% t#e 1))! Revised Rules o% Civil Pro$edure. Petitioner %iled t#e instant petition against respondent, t#en *e$retary o% +usti$e *imeon ,atumanong, t#e o%%i$ial tas-ed to implement la.s governing $iti/ens#ip.1314 Petitioner prays t#at a .rit o% pro#i&ition &e issued to stop respondent %rom implementing Repu&li$ A$t No. )22(, entitled 0 An Act Making the Citizenship of Philippine Citizens Who Acquire Foreign Citizenship Permanent, Amending for the Purpose Commonwealth Act No. !, As Amended, and for "ther Purposes.1 Petitioner avers t#at Rep. A$t No. )22( is un$onstitutional as it violates *e$tion (, Arti$le 23 o% t#e

E6e$utive 7rder No. 2)2, also -no.n as t#e 0Administrative Code o% 1)8!,1 Boo- 23, "itle 222, C#apter 1 9on t#e ,epartment o% +usti$e:, states:
415

6666 *EC. ;. Powers and Functions. < "o a$$omplis# its mandate, t#e ,epartment s#all #ave t#e %ollo.ing po.ers and %un$tions: 6666 9': Provide immigration and naturali/ation regulatory servi$es and implement t#e la.s governing $iti/ens#ip and t#e admission and stay o% aliens= 6666

1)8! Constitution t#at states, 0,ual allegian$e o% $iti/ens is inimi$al to t#e national interest and s#all &e dealt .it# &y la..1

Rep. A$t No. )22(, signed into la. &y President >loria M. Arroyo on August 2), 2

;, reads:

*EC"27N 1. #hort $itle.<"#is A$t s#all &e -no.n as t#e 0Citi/ens#ip Retention and Rea$?uisition A$t o% 2 ;.1 *EC. 2. %eclaration of Polic&.<2t is #ere&y de$lared t#e poli$y o% t#e *tate t#at all P#ilippine $iti/ens .#o &e$ome $iti/ens o% anot#er $ountry s#all &e deemed not to #ave lost t#eir P#ilippine $iti/ens#ip under t#e $onditions o% t#is A$t. *EC. ;. 'etention of Philippine Citizenship.<Any provision o% la. to t#e $ontrary not.it#standing, natural-&orn $iti/ens o% t#e P#ilippines .#o #ave lost t#eir P#ilippine $iti/ens#ip &y reason o% t#eir naturali/ation as $iti/ens o% a %oreign $ountry are #ere&y deemed to #ave rea$?uired P#ilippine $iti/ens#ip upon ta-ing t#e %ollo.ing oat# o% allegian$e to t#e Repu&li$: 02 @@@@@@@@@@@@@@@@@@@@@@@@@@@, solemnly s.ear 9or a%%irm: t#at 2 .ill support and de%end t#e Constitution o% t#e Repu&li$ o% t#e P#ilippines and o&ey t#e la.s and legal orders promulgated &y t#e duly $onstituted aut#orities o% t#e P#ilippines= and 2 #ere&y de$lare t#at 2 re$ogni/e and a$$ept t#e supreme aut#ority o% t#e P#ilippines and .ill maintain true %ait# and allegian$e t#ereto= and t#at 2 impose t#is o&ligation upon mysel% voluntarily .it#out mental reservation or purpose o% evasion.1 Natural-&orn $iti/ens o% t#e P#ilippines .#o, a%ter t#e e%%e$tivity o% t#is A$t, &e$ome $iti/ens o% a %oreign $ountry s#all retain t#eir P#ilippine $iti/ens#ip upon ta-ing t#e a%oresaid oat#. *EC. A. %eri(ati(e Citizenship. < "#e unmarried $#ild, .#et#er legitimate, illegitimate or adopted, &elo. eig#teen 918: years o% age, o% t#ose .#o rea$?uire P#ilippine $iti/ens#ip upon e%%e$tivity o% t#is A$t s#all &e deemed $iti/ens o% t#e P#ilippines. *EC. (. Ci(il and Political 'ights and )ia*ilities . < "#ose .#o retain or rea$?uire P#ilippine $iti/ens#ip under t#is A$t s#all enBoy %ull $ivil and politi$al rig#ts and &e su&Be$t to all attendant lia&ilities and responsi&ilities under e6isting la.s o% t#e P#ilippines and t#e %ollo.ing $onditions: 91: "#ose intending to e6er$ise t#eir rig#t o% su%%rage must meet t#e re?uirements under *e$tion 1, Arti$le 3 o% t#e Constitution, Repu&li$ A$t No. )18), ot#er.ise -no.n as 0"#e 7verseas A&sentee 3oting A$t o% 2 ;1 and ot#er e6isting la.s= 92: "#ose see-ing ele$tive pu&li$ o%%i$e in t#e P#ilippines s#all meet t#e ?uali%i$ations %or #olding su$# pu&li$ o%%i$e as re?uired &y t#e Constitution and e6isting la.s and, at t#e time o% t#e %iling o% t#e $erti%i$ate o% $andida$y, ma-e a personal and s.orn renun$iation o% any and all %oreign $iti/ens#ip &e%ore any pu&li$ o%%i$er aut#ori/ed to administer an oat#= 9;: "#ose appointed to any pu&li$ o%%i$e s#all su&s$ri&e and s.ear to an oat# o% allegian$e to t#e Repu&li$ o% t#e P#ilippines and its duly $onstituted aut#orities prior to t#eir assumption

o% o%%i$e: Pro(ided, "#at t#ey renoun$e t#eir oat# o% allegian$e to t#e $ountry .#ere t#ey toot#at oat#= 9A: "#ose intending to pra$ti$e t#eir pro%ession in t#e P#ilippines s#all apply .it# t#e proper aut#ority %or a li$ense or permit to engage in su$# pra$ti$e= and 9(: "#at rig#t to vote or &e ele$ted or appointed to any pu&li$ o%%i$e in t#e P#ilippines $annot &e e6er$ised &y, or e6tended to, t#ose .#o: 9a: are $andidates %or or are o$$upying any pu&li$ o%%i$e in t#e $ountry o% .#i$# t#ey are naturali/ed $iti/ens= andCor 9&: are in t#e a$tive servi$e as $ommissioned or non$ommissioned o%%i$ers in t#e armed %or$es o% t#e $ountry .#i$# t#ey are naturali/ed $iti/ens. *EC. '. #epara*ilit& Clause. < 2% any se$tion or provision o% t#is A$t is #eld un$onstitutional or invalid, any ot#er se$tion or provision not a%%e$ted t#ere&y s#all remain valid and e%%e$tive. *EC. !. 'epealing Clause. < All la.s, de$rees, orders, rules and regulations in$onsistent .it# t#e provisions o% t#is A$t are #ere&y repealed or modi%ied a$$ordingly. *EC. 8. +ffecti(it& Clause. < "#is A$t s#all ta-e e%%e$t a%ter %i%teen 91(: days %ollo.ing its pu&li$ation in t#e "fficial ,azette or t.o 92: ne.spapers o% general $ir$ulation.

2n t#is petition %or pro#i&ition, t#e %ollo.ing issues #ave &een raised: 91: 2s Rep. A$t No. )22( un$onstitutionalD 92: ,oes t#is Court #ave Burisdi$tion to pass upon t#e issue o% dual allegian$eD

Ee s#all dis$uss t#ese issues Bointly.

Petitioner $ontends t#at Rep. A$t No. )22( $#eapens P#ilippine $iti/ens#ip. Fe avers t#at *e$tions 2 and ; o% Rep. A$t No. )22(, toget#er, allo. dual allegian$e and not dual $iti/ens#ip. Petitioner maintains t#at *e$tion 2 allo.s all Gilipinos, eit#er natural-&orn or naturali/ed, .#o &e$ome %oreign $iti/ens, to retain t#eir P#ilippine $iti/ens#ip .it#out losing t#eir %oreign $iti/ens#ip. *e$tion ; permits dual allegian$e &e$ause said la. allo.s natural-&orn $iti/ens o% t#e P#ilippines to regain t#eir P#ilippine $iti/ens#ip &y simply ta-ing an oat# o% allegian$e .it#out %or%eiting t#eir %oreign allegian$e.5354 "#e Constitution, #o.ever, is $ategori$al t#at dual allegian$e is inimi$al to t#e national interest.

2425

'ollo, p. ).

"#e 7%%i$e o% t#e *oli$itor >eneral 97*>: $laims t#at *e$tion 2 merely de$lares as a state poli$y t#at 0P#ilippine $iti/ens .#o &e$ome $iti/ens o% anot#er $ountry s#all &e deemed not to #ave lost t#eir P#ilippine $iti/ens#ip.1 "#e 7*> %urt#er $laims t#at t#e oat# in *e$tion ; does not allo. dual allegian$e sin$e t#e oat# ta-en &y t#e %ormer Gilipino $iti/en is an e%%e$tive renun$iation and repudiation o% #is %oreign $iti/ens#ip. "#e %a$t t#at t#e appli$ant ta-ing t#e oat# re$ogni/es and a$$epts t#e supreme aut#ority o% t#e P#ilippines is an unmista-a&le and $ategori$al a%%irmation o% #is undivided loyalty to t#e Repu&li$.6364

2n resolving t#e a%ore$ited issues in t#is $ase, resort to t#e deli&erations o% Congress is ne$essary to determine t#e intent o% t#e legislative &ran$# in dra%ting t#e assailed la.. ,uring t#e deli&erations, t#e issue o% .#et#er Rep. A$t No. )22( .ould allo. dual allegian$e #ad in %a$t &een t#e su&Be$t o% de&ate. "#e re$ord o% t#e legislative deli&erations reveals t#e %ollo.ing: 6666 Pursuing #is point, Rep. ,ilangalen noted t#at under t#e measure, t.o situations e6ist - - t#e retention o% %oreign $iti/ens#ip, and t#e rea$?uisition o% P#ilippine $iti/ens#ip. 2n t#is $ase, #e o&served t#at t#ere are t.o $iti/ens#ips and t#ere%ore, t.o allegian$es. Fe pointed out t#at under t#e Constitution, dual allegian$e is inimi$al to pu&li$ interest. Fe t#erea%ter as-ed .#et#er .it# t#e $reation o% dual allegian$e &y reason o% retention o% %oreign $iti/ens#ip and t#e rea$?uisition o% P#ilippine $iti/ens#ip, t#ere .ill no. &e a violation o% t#e ConstitutionH Rep. Io$sin unders$ored t#at t#e measure does not see- to address t#e $onstitutional inBun$tion on dual allegian$e as inimi$al to pu&li$ interest. H- %("7 +$(+ +$- *.o*o%-7 )(8 ("9% +o &('")"+(+- +$.-(':/"%"+"o# o& ;$")"**"#- '"+"<-#%$"* =, %*--7, 9-(#%. Ho8->-., $- %("7 +$(+ "# o#- %-#%-, "+ (77.-%%-% +$- *.o=)-9 o& 7/() '"+"<-#%$"* =, .-:/"."#? +$- +(@"#? o& (# o(+$. H- -0*)("#-7 +$(+ +$*.o=)-9 o& 7/() '"+"<-#%$"* "% +.(#%&-..-7 &.o9 +$- ;$")"**"#-% +o +$- &o.-"?# 'o/#+., =-'(/%- +$)(+-%+ o(+$ +$(+ 8")) =- +(@-# =, +$- &o.9-. F")"*"#o "% o#- o& ())-?"(#'- +o +$- ;$")"**"#-% (#7 #o+ +o +$- U#"+-7 S+(+-%, (% +$- '(%- 9(, =- . Fe added t#at t#is is a matter .#i$# t#e P#ilippine government .ill #ave no $on$ern and $ompeten$e over. Rep. ,ilangalen as-ed .#y t#is .ill no longer &e t#e $ountryJs $on$ern, .#en dual allegian$e is involved. Rep. Io$sin $lari%ied t#at t#is .as pre$isely #is o&Be$tion to t#e original version o% t#e &ill, .#i$# did not re?uire an oat# o% allegian$e. S"#'- +$- 9-(%/.- #o8 .-:/".-% +$"% o(+$, +$- *.o=)-9 o& 7/() ())-?"(#'- "% +.(#%&-..-7 &.o9 +$- ;$")"**"#-% +o +$- &o.-"?# 'o/#+., 'o#'-.#-7 , #e e6plained. 6666 Rep. ,ilangalen as-ed .#et#er in t#e parti$ular $ase, t#e person did not denoun$e #is %oreign $iti/ens#ip and t#ere%ore still o.es allegian$e to t#e %oreign government, and at t#e same time, o.es #is allegian$e to t#e P#ilippine government, su$# t#at t#ere is no. a $ase o% dual $iti/ens#ip and dual allegian$e.

4;5

2d. at A8.

Rep. Io$sin $lari%ied t#at =, %8-(."#? +o +$- %/*.-9- (/+$o."+, o& +$- R-*/=)"', +$- *-.%o# "9*)"'"+), .-#o/#'-% $"% &o.-"?# '"+"<-#%$"*. Fo.ever, #e said t#at t#is is not a matter t#at #e .is#es to address in Congress &e$ause #e is not a mem&er o% a %oreign parliament &ut a Mem&er o% t#e Fouse. 6666 Rep. Io$sin replied t#at it is imperative t#at t#ose .#o #ave dual allegian$e $ontrary to national interest s#ould &e dealt .it# &y la.. Fo.ever, #e said t#at t#e dual allegian$e pro&lem is not addressed in t#e &ill. Fe t#en $ited t#e ,e$laration o% Poli$y in t#e &ill .#i$# states t#at 02t is #ere&y de$lared t#e poli$y o% t#e *tate t#at all $iti/ens .#o &e$ome $iti/ens o% anot#er $ountry s#all &e deemed not to #ave lost t#eir P#ilippine $iti/ens#ip under t#e $onditions o% t#is A$t.1 Fe stressed t#at 8$(+ +$- =")) 7o-% "% .-'o?#"<;$")"**"#- '"+"<-#%$"* =/+ %(,% #o+$"#? (=o/+ +$- o+$-. '"+"<-#%$"*. Rep. Io$sin %urt#er pointed out t#at t#e pro&lem o% dual allegian$e is $reated .#erein a natural-&orn $iti/en o% t#e P#ilippines ta-es an oat# o% allegian$e to anot#er $ountry and in t#at oat# says t#at #e a&Bures and a&solutely renoun$es all allegian$e to #is $ountry o% origin and s.ears allegian$e to t#at %oreign $ountry. "#e original Bill #ad le%t it at t#is stage, #e e6plained. I# +$- *.-%-#+ 9-(%/.-, $')(."&"-7, ( *-.%o# "% .-:/".-7 +o +(@- (# o(+$ (#7 +$- )(%+ $- /++-.% "% o#- o& ())-?"(#'- +o +$'o/#+.,. H- +$-# %("7 +$(+ +$- *.o=)-9 o& 7/() ())-?"(#'- "% #o )o#?-. +$- *.o=)-9 o& +$;$")"**"#-% =/+ o& +$- o+$-. &o.-"?# 'o/#+.,.A3A4 9Emp#asis supplied.:

Grom t#e a&ove e6$erpts o% t#e legislative re$ord, it is $lear t#at t#e intent o% t#e legislature in dra%ting Rep. A$t No. )22( is to do a.ay .it# t#e provision in Common.ealt# A$t No. ';B3B4 .#i$# ta-es a.ay P#ilippine $iti/ens#ip %rom natural-&orn Gilipinos .#o &e$ome naturali/ed $iti/ens o% ot#er $ountries. E#at Rep. A$t No. )22( does is allo. dual $iti/ens#ip to natural-&orn Gilipino $iti/ens .#o #ave lost P#ilippine $iti/ens#ip &y reason o% t#eir naturali/ation as $iti/ens o% a %oreign $ountry. 7n its %a$e, it does not re$ogni/e dual allegian$e. By s.earing to t#e supreme aut#ority o% t#e Repu&li$, t#e person impli$itly renoun$es #is %oreign $iti/ens#ip. Plainly, %rom *e$tion ;, Rep. A$t No. )22( stayed $lear out o% t#e pro&lem o% dual allegian$e and s#i%ted t#e &urden o% $on%ronting t#e issue o% .#et#er or not t#ere is dual allegian$e to t#e $on$erned %oreign $ountry. E#at #appens to t#e ot#er $iti/ens#ip .as not made a $on$ern o% Rep. A$t No. )22(.

A (

4A5 4(5

11 +7KRNAI, F7K*E 7G REPRE*EN"A"23E* 9August 2', 2

;:.

AN AC" PR732,2N> G7R "FE EAL* 2N EF2CF PF2I2PP2NE C2"2MEN*F2P MAL BE I7*" 7R REACNK2RE,. 9Approved on 7$to&er 21, 1);'.: 6666 *EC"27N 1. Ho8 '"+"<-#%$"* 9(, =- )o%+. < A Gilipino $iti/en may lose #is $iti/ens#ip in any o% t#e %ollo.ing .ays andCor events: 91: By naturali/ation in a %oreign $ountry= 6666

Petitioner li-e.ise advan$es t#e proposition t#at alt#oug# Congress #as not yet passed any la. on t#e matter o% dual allegian$e, su$# a&sen$e o% a la. s#ould not &e Busti%i$ation .#y t#is Court $ould not rule on t#e issue. Fe %urt#er $ontends t#at .#ile it is true t#at t#ere is no ena&ling la. yet on dual allegian$e, t#e *upreme Court, t#roug# Mercado (. Manzano,6364 already #ad dra.n up t#e guidelines on #o. to distinguis# dual allegian$e %rom dual $iti/ens#ip. C3C4

Gor its part, t#e 7*> $ounters t#at pursuant to *e$tion (, Arti$le 23 o% t#e 1)8! Constitution, dual allegian$e s#all &e dealt .it# &y la.. "#us, until a la. on dual allegian$e is ena$ted &y Congress, t#e *upreme Court is .it#out any Burisdi$tion to entertain issues regarding dual allegian$e. 3 4

"o &egin .it#, *e$tion (, Arti$le 23 o% t#e Constitution is a de$laration o% a poli$y and it is not a sel%-e6e$uting provision. "#e legislature still #as to ena$t t#e la. on dual allegian$e. 2n *e$tions 2 and ; o% Rep. A$t No. )22(, t#e %ramers .ere not $on$erned .it# dual $iti/ens#ip per se, &ut .it# t#e status o% naturali/ed $iti/ens .#o maintain t#eir allegian$e to t#eir $ountries o% origin even a%ter t#eir naturali/ation. !3!4 Congress .as given a mandate to dra%t a la. t#at .ould set spe$i%i$ parameters o% .#at really $onstitutes dual allegian$e. 103104 Kntil t#is is done, it .ould &e premature %or t#e Budi$ial department, in$luding t#is Court, to rule on issues pertaining to dual allegian$e.

Neit#er $an .e su&s$ri&e to t#e proposition o% petitioner t#at a la. is not needed sin$e t#e $ase o% Mercado #ad already set t#e guidelines %or determining dual allegian$e. Petitioner misreads Mercado. "#at $ase did not set t#e parameters o% .#at $onstitutes dual allegian$e &ut merely made a distin$tion &et.een dual allegian$e and dual $iti/ens#ip.

' ! 8 ) 1

4'5 4!5 485 4)5 41 5

>.R. No. 1;( 8;, May 2', 1))), ; ! *CRA '; . 2d. at 'A;. 'ollo, pp. ((-('. *upra note !. REC7R,*, C7N*"2"K"27NAI C7MM2**27N ;'( 9+uly 8, 1)8':.

Moreover, in +strada (. #andigan*a&an,113114 .e said t#at t#e $ourts must assume t#at t#e legislature is ever $ons$ious o% t#e &orders and edges o% its plenary po.ers, and passed la.s .it# %ull -no.ledge o% t#e %a$ts and %or t#e purpose o% promoting .#at is rig#t and advan$ing t#e .el%are o% t#e maBority. Fen$e, in determining .#et#er t#e a$ts o% t#e legislature are in tune .it# t#e %undamental la., .e must pro$eed .it# Budi$ial restraint and a$t .it# $aution and %or&earan$e.153154 "#e do$trine o% separation o% po.ers demands no less. Ee $annot arrogate t#e duty o% setting t#e parameters o% .#at $onstitutes dual allegian$e .#en t#e Constitution itsel% #as $learly delegated t#e duty o% determining .#at a$ts $onstitute dual allegian$e %or study and legislation &y Congress. WHEREFORE, t#e petition is #ere&y DISMISSED %or la$- o% merit. SO ORDERED.

MATHEW S. TEE >. TACLOBAN ELECTRIC AND ICE ;LANT CO., INC., CHAN BUN CHIT (#7 VICTORIANO CHAN 1 G.R. No. L111! 0 31!B!4 ;HSC 5! (1A F-=./(., 1!B!)
PF2I2PP2NE +KR2*PRK,ENCE - GKII "EO"

"#e Ia.p#il ProBe$t - Arellano Ia. Goundation Repu&li$ o% t#e P#ilippines SU;REME COURT 11 4115 >.R. No. 1A8(' , Novem&er 1), 2 1, ;') *CRA ;)A.

124125 2d. at A;1.

Manila EN BANC G.R. No. L111! 0 F-=./(., 1A, 1!B! MATHEW S. TEE, *)("#+"&&1(**-))(#+, vs. TACLOBAN ELECTRIC AND ICE ;LANT CO., INC., CHAN BUN CHIT (#7 VICTORIANO CHAN, 7-&-#7(#+%1(**-))--%. %iokno and #ison for appellant. Ferdinand +. Marcos for appellees. CONCE;TION, J.: Plainti%% Mat#e. *. "ee see-s to re$over, %rom de%endants "a$lo&an Ele$tri$ and 2$e Plant Co., 2n$., 3i$toriano C#an and C#an Bun C#it, t#e amount o% PA8,! representing ten 91 P: per $ent o% a Q2A;,( allo$ation allegedly se$ured &y said plainti%% %rom t#e Central Ban- o% t#e P#ilippines R in addition to t#e sum o% P1 , , &y .ay o% e6penses o% litigation and attorneySs %ees, .it# $osts against said de%endants. 2n paragrap#s 2, ;, A, and ( o% #is $omplaint alleges t#at: 2. 7n or a&out August, 1)((, de%endant "a$lo&an Ele$tri$ and 2$e Plant Co., 2n$., a$ting t#roug# de%endants C#an Bun C#it and 3i$toriano C#an, approa$#ed plainti%% and, in%orming #im t#at t#ey needed %oreign e6$#ange allo$ation %or t#e pur$#ase o% ma$#ineries and ot#er supplies %or t#e e6pansion o% t#e "a$lo&an Ele$tri$ and 2$e Plant Co., 2n$., t#ey re?uested plainti%% to prepare, %ile and .or- %or t#e approval o% t#e appli$ation %or t#e said %oreign e6$#ange, -no.ing plainti%% #ad mu$# e6perien$e t#erein, and promising to pat plainti%% t#e usual %ee %or #is .or-, to .#i$# plainti%% agreed. ;. 2n $omplian$e .it# t#e said agreement, plainti%% .or-ed %or a period o% si6 9': mont#s, more or less, a$$omplis#ing papers, %iling t#em and %ollo.ing up t#e papers in t#e di%%erent government o%%i$es to .#i$# t#ey .ere re%erred in order to o&tain t#e ne$essary %oreign e6$#ange allo$ation, as a result o% .#i$# t#e Central Bangranted an allo$ation o% 9Q2A;,( . : "E7 FKN,RE, G7R"L-"FREE "F7K*AN, G23E FKN,RE, ,7IIAR*= A. "#e usual, standard %ee %or t#e servi$es per%ormed &y plainti%% is "EN PERCEN"KM 91 P: o% t#e value o% t#e allo$ation o&tained, .#i$# in t#is $ase amounts to 9PA8,! . : G7R"L-E2>F" "F7K*AN, *E3EN FKN,RE, PE*7*= (. Plainti%% #as demanded payment %rom de%endants, &ut t#e latter #ave %ailed and re%used, .it#out Busti%ia&le $ause, to $omply .it# plainti%%Ss demands. ,e%endants %iled separate motions to dismiss, predi$ated upon t#e ground, among ot#ers, t#at t#e $ontra$t re%%ered to in t#e $omplaints is null and void a& initio. A%ter appropriate pro$eedings, t#e Court o% Girst 2nstan$e o% Manila granted t#ese motions and dismissed t#e $ase. Fen$e, t#is appeal &y plainti%%, .#o maintains t#at:

1. "#e trial $ourt erred in dismissing plainti%%Ss $omplaint, .it#out re?uiring de%endants to ans.er or #earing plainti%%Ss eviden$e, on t#e ground t#at plainti%%Ss demand %or $ompensation %or t#e servi$es #e #ad rendered in preparing and .or-ing %or t#e approval o% de%endantsS appli$ation %or %oreign e6$#ange is Tunen%or$ea&le under t#e statute o% %raudSs &e$ause o% t#e denials o% de%endants to re$ogni/e t#at said servi$es #ave &een rendered in t#eir %avor and &ene%it.T 9Resolution, Re$ord on Appeal, p. 12 .: 2. "#e trial $ourt %urt#er erred in ruling, .it#out giving plainti%% an opportunity to present #is eviden$e, and despite t#e allegations o% plainti%%Ss $omplaint to t#e $ontrary, t#at Tit .as not #e 9plainti%%: .#o #ad o&tained t#e dollar allo$ation %or t#e de%endantsT 9Re$ord on Appeal, pp. 121-122:, and %or t#at reason, dismissing #is $omplaint. ;. "#e trial $ourt li-e.ise erred in dismissing plainti%%Ss $omplaint on t#e ground t#at t#e a%oresaid $ontra$t Tis invalid and voidT &e$ause it is T$ontrary to la. and pu&li$ moralsT 9Re$ord on Appeal, p.121:. A. "#e trial $ourt %inally erred in dismissing t#e $omplaint as to de%endants 3i$toriano C#an and C#an Bun C#it, on t#e ground t#at t#ey a$ted merely Tas intermediaries or attorney in %a$t o% t#e de%endant "a$lo&an Ele$tri$ and 2$e Plant, 2n$., and, at t#e same time, dismissing t#e $omplaint as to t#e de%endant Ele$tri$ U 2$e Plant, 2n$. &e$ause Tit $ould not &e #eld lia&le %or t#e a$ts o% an agent or intermediaryT 9Re$ord on Appeal, pp. 122-12;:. "#e main issue in t#is $ase is t#e validity o% t#e $ontra$t relied in t#e $omplaint. "#e lo.er $ourt pronoun$ed it void in t#e %ollo.ing language: 2t is gleaned %rom t#e a&ove $ited paragrap#s o% t#e $omplaint t#at a $ontra$t o% agen$y e6isted &et.een plainti%% and de%endants. *u$# $ontra$t &eing $ontrary to la. and pu&li$ morals same is invalid and void and $ould not t#ere%ore &e en%or$ed against de%endants. Arti$le 1A ) o% t#e Civil Code pro#i&its su$# $ontra$t and *e$tion 1A o% t#e Central Ban- C#arter and A$t 2'( o% t#e Repu&li$ pro#i&it and punis# any person e6$ept t#e interested party to .or- %or and in &e#al% o% t#e party interested to o&tain dollar allo$ationSs approval. Conse?uently, t#e $laim o% plainti%% &eing not only pro#i&ited &y la. %or &eing against pu&li$ poli$y and morals &ut li-e.ise punis#a&le &y t#e same legal provisions, said $laim is void and unen%or$ea&le. 9Re$ord on Appeal, 121.: Ee are %ully in agreement .it# t#is vie.. A$$ording to plainti%%Ss $omplaint, #e agreed Tto prepare, %ile and .or- %or, t#e approval o% t#e appli$ationT %or %oreign e6$#ange o% t#e "a$lo&an Ele$tri$ U 2$e Plant Co., 2n$., and Tin $omplian$eT .it# said agreement, #e T.or-ed %orT, and se$ured t#e $orresponding allo$ation, Ta$$omplis#ing t#e papers, %iling t#em, and following up the papers in the different go(ernment offices to which the& were referred .T *e$tion ; o% Arti$le 23 o% Central Ban- Cir$ular No. AA, provides: Aut#ori/ed Agent Ban-s are #ere&y instru$ted to in%orm t#eir $lients t#at under no circumstances should an& applicant, his agent or other representati(e, follow up an application with the Central -ank or -ankers Committee . All in%ormation $on$erning appli$ations, in$luding a$tions ta-en t#ereon &y t#e Monetary Board or t#e Ban-ersS Committee, s#all &e $ommuni$ated to t#e appli$ants *& their respecti(e Authorized Agent -anks . 9Emp#asis ours.: Pursuant to t#is $ir$ular, all appli$ations %or %oreign e6$#ange s#all &e made t#roug# aut#ori/ed agent &an-s, .#i$# are t#e only parties aut#ori/ed to deal .it# t#e Central Ban- or t#e Ban-ers Committee in $onne$tion t#ere.it#. Consistently .it# t#is s$#eme, plan or pattern, t#e $ir$ular de$lares t#at, Tunder no $ir$umstan$es s#ould any appli$ant, #is agent, and representati(es %ollo. up an appli$ation .it# t#e Central Ban-.T Plainti%%Ss alleged $ontra$t to .or- %or t#e approval o% t#e %oreign e6$#ange appli$ation in ?uestion and t#e servi$es #e

$laims to #ave per%ormed in pursuan$e o% t#is $ontra$t, T%ollo.ing up t#e papers in t#e di%%erent governments o%%i$es to .#i$# t#ey .ere re%erredT R one o% .#i$# is t#e Central Ban- R are in$onsistent .it# t#e la. 9Repu&li$ A$t No. 2'(, as amended: $reating t#e Central Ban- R upon t#e issued R and, #en$e, $ontrary to t#e pu&li$ poli$y t#us adopted. 2n s#ort, said $ontra$t is Tine6istent and void %rom t#e &eginning.T 9Arti$le 1A ) 91:, Civil Code o% t#e P#ilippines:. Besides, t#e agreement under $onsideration is $ontrary to good $ustoms and pu&li$ order, %or pu&li$ interest demands t#at appli$ations %or %oreign e6$#ange &e $onsidered, a$ted upon and disposed o% stri$tly on t#e &asis o% t#e merits and demerits o% ea$# $ase. 2n ot#er .ords, t#e e6igen$ies o% pu&li$ .el%are re?uire t#at t#e pro$eedings %or t#e determination o% said appli$ation &e $ondu$ted in t#e most impersonal and impartial manner R to %orestall %avoritism or t#e $ommission o% ot#er irregularities in relation t#ereto, or, at least, to minimi/e t#e opportunities t#ere%or or t#e possi&ility t#ereo% R .#i$# is evidently, t#e purpose o% t#e a%orementioned $ir$ular, re?uiring t#at all appli$ations %or %oreign e6$#ange &e %iled .it# agents &an-s and t#at all representations relative t#ereto &e made, not &y t#e Tappli$ant, #is agent or ot#er representativeT, &ut t#roug# said agent &an-s. El orden pu&li$o, ?ue no signi%i$a a?ui el material mantenimiento de la pa/ pu&li$a, representa el interes pu&li$o, so$ial y deley en el dere$#o privado, lo permanente y essen$ial de las institu$iones, lo ?ue, aun %avore$iendo a algun individuo en ?uien se $on$reta al dere$#o, no peuede ?uedar a su ar&itro. 9Manresa, (.a ed, "omo 3222, 3olumen 22, p. 28).: *EC. 1'!. >enerally. R 2t is a general rule t#at agreements against pu&li$ poli$y are illegal and void. Knder t#e prin$iples relating to t#e do$trine o% pu&li$ poli$y, as applied to t#e la. o% $ontra$ts, $ourts o% Busti$e .ill not re$ogni/e or up#old any transa$tion .#i$#, in its o&Be$t, operation, or tenden$y, is $al$ulated to &e preBudi$ial to t#e pu&li$ .el%are, to sound morality, or to $ivi$ #onesty. "#e test is .#et#er t#e parties #ave stipulated %or somet#ing in#i&ited &y t#e la. or inimi$al to, or in$onsistent .it#, t#e pu&li$ .el%are. An agreement is against pu&li$ poli$y i% it is inBurious to t#e interest o% t#e pu&li$, $ontravenes some esta&lis#ed interest o% so$iety, violates some pu&li$ statute, is against good morals, tends to inter%ere .it# t#e pu&li$ .el%are or sa%ety, or as it is sometimes put, i% it is a .ar .it# t#e interests o% so$iety and is in $on%li$t .it# t#e morals o% t#e time. An agreement eit#er to do anyt#ing .#i$#, or not to do anyt#ing t#e omission o% .#i$#, is in any degree, $learly inBurious to t#e pu&li$ and an agreement o% su$# nature t#at it $annot &e $arried into e6e$ution .it#out rea$#ing &eyond t#e parties and e6er$ising an inBurious in%luen$e over t#e $ommunity at large are against pu&li$ poli$y. "#ere are many t#ings .#i$# t#e la. does not pro#i&it, in t#e sense o% atta$#ing penalties, &ut .#i$# are so mis$#ievous in t#eir nature and tenden$y t#at on grounds o% pu&li$ poli$y t#ey $annot &e admitted as t#e su&Be$t o% a valid $ontra$t. "#e ?uestion .#et#er a $ontra$t is against pu&li$ poli$y depends upon its purpose and tenden$y, and not upon t#e %a$t t#at no #arm results %rom it. 2n ot#er .ords, all agreements t#e purpose o% .#i$# is to $reate a situation .#i$# tends to operate to t#e detriment o% t#e pu&li$ are against pu&li$ poli$y and void, .#et#er in t#e parti$ular $ase t#e purpose o% t#e agreement is or not e%%e$tuated. Gor a parti$ular underta-ing to &e against pu&li$ poli$y a$tual need not &e s#o.n= it is enoug# i% t#e potentialities %or #arm are present. . . . 912 Am. +r., pp. '';-''A.: "#e %oregoing $on$lusion renders a determination o% t#e ot#er issues raise in t#e appeal unne$essary. E#ere%ore, t#e resolution appealed %rom is #ere&y a%%irmed, .it# $osts against plainti%%-appellant. Iet t#e *oli$itor >eneral &e %urnis#ed a $erti%ied $opy o% t#is de$ision %or su$# a$tion, i% any, as may &e appropriate under pertinent la.s. 2t is so ordered.

Paras, C..., -engzon, Padilla, Montema&or, 'e&es, A., -autista Angelo, )a*rador, 'e&es, ..-.). and +ndencia, ..., concur. $he )awphil Pro/ect 0 Arellano )aw Foundation
A%"(#LIID Copyrig#t Poli$y E ,is$laimers E Priva$y Poli$y E Geed&a$KRI: http122www.asianlii.org2ph2cases2P3#C24565275.html

EMETERIO CUI >. ARELLANO UNIVERSITF 1 G.R. No. L11B15C 31!614 ;HSC 5C6 (60 M(, 1!61)
PF2I2PP2NE +KR2*PRK,ENCE - GKII "EO"

"#e Ia.p#il ProBe$t - Arellano Ia. Goundation Repu&li$ o% t#e P#ilippines SU;REME COURT Manila EN BANC

G.R. No. L11B15C M(, 60, 1!61 EMETERIO CUI, *)("#+"&&1(**-))(#+, vs. ARELLANO UNIVERSITF, 7-&-#7(#+1(**-))--. ,.A.#. #ipin, .r., for plaintiff0appellant. +. 8oltaire ,arcia for defendant0appellee. CONCE;CION, J.: Appeal &y plainti%% Emeterio Cui %rom a de$ision o% t#e Court o% Girst 2nstan$e o% Manila, a&solving de%endant Arellano Kniversity %rom plainti%%Ss $omplaint, .it# $osts against t#e plainti%%, and dismissing de%endantSs $ounter $laim, %or insu%%i$ien$y o% proo% t#ereon. 2n t#e language o% t#e de$ision appealed %rom: "#e essential %a$ts o% t#is $ase are s#ort and undisputed. As esta&lis#ed &y t#e agreement o% %a$ts E6#i&its O and &y t#e respe$tive oral and do$umentary eviden$e introdu$ed &y t#e parties, it appears $on$lusive t#at plainti%%, &e%ore t#e s$#ool year 1)A8-1)A) too- up preparatory la. $ourse in t#e de%endant Kniversity. A%ter %inis#ing #is preparatory la. $ourse plainti%% enrolled in t#e College o% Ia. o% t#e de%endant %rom t#e s$#ool year 1)A8-1)A). Plainti%% %inis#ed #is la. studies in t#e de%endant university up to and in$luding t#e %irst semester o% t#e %ourt# year. ,uring all t#e s$#ool years in .#i$# plainti%% .as studying la. in de%endant la. $ollege, Gran$is$o R. Capistrano, &rot#er o% t#e mot#er o% plainti%%, .as t#e dean o% t#e College o% Ia. and legal $ounsel o% t#e de%endant university. Plainti%% enrolled %or t#e last semester o% #is la. studies in t#e de%endant university &ut %ailed to pay #is tuition %ees &e$ause #is un$le ,ean Gran$is$o R. Capistrano #aving severed #is $onne$tion .it# de%endant and #aving a$$epted t#e deans#ip and $#an$ellors#ip o% t#e College o% Ia. o% A&ad *antos Kniversity, plainti%% le%t t#e de%endantSs la. $ollege and enrolled %or t#e last semester o% #is %ourt# year la. in t#e $ollege o% la. o% t#e A&ad *antos Kniversity graduating %rom t#e $ollege o% la. o% t#e latter university. Plainti%%, during all t#e time #e .as studying la. in de%endant university .as a.arded s$#olars#ip grants, %or s$#olasti$ merit, so t#at #is semestral tuition %ees .ere returned to #im a%ter t#e ends o% semester and .#en #is s$#olars#ip grants .ere a.arded to #im. "#e .#ole amount o% tuition %ees paid &y plainti%% to de%endant and re%unded to #im &y t#e latter %rom t#e %irst semester up to and in$luding t#e %irst semester o% #is last year in t#e $ollege o% la. or t#e %ourt# year, is in total P1, ;;.8!. A%ter graduating in la. %rom A&ad *antos Kniversity #e applied to ta-e t#e &ar e6amination. "o se$ure permission to ta-e t#e &ar #e needed t#e trans$ripts o% #is re$ords in de%endant Arellano Kniversity. Plainti%% petitioned t#e latter to issue to #im t#e needed trans$ripts. "#e de%endant re%used until a%ter #e #ad paid &a$- t#e P1, ;; 8! .#i$# de%endant re%unded to #im as a&ove stated. As #e $ould not ta-e t#e &ar e6amination .it#out t#ose trans$ripts, plainti%% paid to de%endant t#e said sum under protest. "#is is t#e sum .#i$# plainti%% see-s to re$over %rom de%endant in t#is $ase. Be%ore de%endant a.arded to plainti%% t#e s$#olars#ip grants as a&ove stated, #e .as made to sign t#e %ollo.ing $ontra$t $ovenant and agreement:

T2n $onsideration o% t#e s$#olars#ip granted to me &y t#e Kniversity, 2 #ere&y .aive my rig#t to trans%er to anot#er s$#ool .it#out #aving re%unded to t#e Kniversity 9de%endant: t#e e?uivalent o% my s$#olars#ip $as#. 9*gd.: Emeterio CuiT. 2t is admitted t#at, on August 1', 1)A), t#e ,ire$tor o% Private *$#ools issued Memorandum No. ;8, series o% 1)A), on t#e su&Be$t o% T*$#olars#ip,T addressed to TAll #eads o% private s$#ools, $olleges and universities,T reading: 1. *$#ool $atalogs and prospe$tuses su&mitted to t#is, Bureau s#o. t#at some s$#ools o%%er %ull or partial s$#olars#ips to deserving students R %or e6$ellen$e in s$#olars#ip or %or leaders#ip in e6tra-$urri$ular a$tivities. *u$# indu$ements to poor &ut gi%ted students s#ould &e en$ouraged. But to stipulate t#e $ondition t#at su$# s$#olars#ips are good only i% t#e students $on$erned $ontinue in t#e same s$#ool nulli%ies t#e prin$iple o% merit in t#e a.ard o% t#ese s$#olars#ips. 2. E#en students are given %ull or partial s$#olars#ips, it is understood t#at su$# s$#olars#ips are merited and earned. "#e amount in tuition and ot#er %ees $orresponding to t#ese s$#olars#ips s#ould not &e su&se?uently $#arged to t#e re$ipient students .#en t#ey de$ide to ?uit s$#ool or to trans%er to anot#er institution. *$#olars#ips s#ould not &e o%%ered merely to attra$t and -eep students in a s$#ool. ;. *everal $omplaints #ave a$tually &een re$eived %rom students .#o #ave enBoyed s$#olars#ips, %ull or partial, to t#e e%%e$t t#at t#ey $ould not trans%er to ot#er s$#ools sin$e t#eir $redentials .ould not &e released unless t#ey .ould pay t#e %ees $orresponding to t#e period o% t#e s$#olars#ips. E#ere t#e Bureau &elieves t#at t#e rig#t o% t#e student to trans%er is &eing denied on t#is ground, it reserves t#e rig#t to aut#ori/e su$# trans%er. t#at de%endant #erein re$eived a $opy o% t#is memorandum= t#at plainti%% as-ed t#e Bureau o% Private *$#ools to pass upon t#e issue on #is rig#t to se$ure t#e trans$ript o% #is re$ord in de%endant Kniversity, .it#out &eing re?uired to re%und t#e sum o% P1, ;;.8!= t#at t#e Bureau o% Private *$#ools up#eld t#e position ta-en &y t#e plainti%% and so advised t#e de%endant= and t#at, t#is not.it#standing, t#e latter re%used to issue said trans$ript o% re$ords, unless said re%und .ere made, and even re$ommended to said Bureau t#at it issue a .ritten order dire$ting t#e de%endant to release said trans$ript o% re$ord, Tso t#at t#e $ase may &e presented to t#e $ourt %or Budi$ial a$tion.T As a&ove stated, plainti%% .as, a$$ordingly, $onstrained to pay, and did pay under protest, said sum o% P1, ;;.8!, in order t#at #e $ould ta-e t#e &ar e6amination in 1)(;. *u&se?uently, #e &roug#t t#is a$tion %or t#e re$overy o% said amount, aside %rom P2, as moral damages, P( as e6emplary damages, P2, as attorneySs %ees, and P( as e6penses o% litigation. 2n its ans.er, de%endant reiterated t#e stand it too-, (is0a0(is t#e Bureau o% Private *$#ools, namely, t#at t#e provisions o% its $ontra$t .it# plainti%% are valid and &inding and t#at t#e memorandum a&ove-re%erred to is null and void. 2t, li-e.ise, set up a $ounter$laim %or P1 , . as damages, and P;, as attorneySs %ees. "#e issue in t#is $ase is .#et#er t#e a&ove ?uoted provision o% t#e $ontra$t &et.een plainti%% and t#e de%endant, .#ere&y t#e %ormer .aived #is rig#t to trans%er to anot#er s$#ool .it#out re%unding to t#e latter t#e e?uivalent o% #is s$#olars#ips in $as#, is valid or not. "#e lo.er $ourt resolved t#is ?uestion in t#e a%%irmative, upon t#e ground t#at t#e a%orementioned memorandum o% t#e ,ire$tor o% Private *$#ools is not a la.= t#at t#e provisions t#ereo% are advisory, not mandatory in nature= and t#at, alt#oug# t#e $ontra$tual provision Tmay &e unet#i$al, yet it .as more unet#i$al %or plainti%% to ?uit studying .it# t#e de%endant .it#out good reasons and simply

&e$ause #e .anted to %ollo. t#e e6ample o% #is un$le.T Moreover, de%endant maintains in its &rie% t#at t#e a%orementioned memorandum o% t#e ,ire$tor o% Private *$#ools is null and void &e$ause said o%%i$er #ad no aut#ority to issue it, and &e$ause it #ad &een neit#er approved &y t#e $orresponding department #ead nor pu&lis#ed in t#e o%%i$ial ga/ette. Ee do not deem it ne$essary or advisa&le to $onsider as t#e lo.er $ourt did, t#e ?uestion .#et#er plainti%% #ad su%%i$ient reasons or not to trans%er %rom de%endant Kniversity to t#e A&ad *antos Kniversity. "#e nature o% t#e issue &e%ore us, and its %ar rea$#ing e%%e$ts, trans$end personal e?uations and demand a determination o% t#e $ase %rom a #ig# impersonal plane. Neit#er do .e deem it essential to pass upon t#e validity o% said Memorandum No. ;8, %or, regardless o% t#e same, .e are o% t#e opinion t#at t#e stipulation in ?uestion is $ontrary to pu&li$ poli$y and, #en$e, null and void. "#e a%oresaid memorandum merely in$orporates a sound prin$iple o% pu&li$ poli$y. As t#e ,ire$tor o% Private *$#ools $orre$tly pointed, out in #is letter, E6#i&it B, to t#e de%endant, "#ere is one more point t#at merits re%utation and t#at is .#et#er or not t#e $ontra$t entered into &et.een Cui and Arellano Kniversity on *eptem&er 1 , 1)(1 .as void as against pu&li$ poli$y. 2n t#e $ase o% Meigel vs. 2llinois "rust and *avings Ban-, 2A( 2ll. 18 , 1) Ann. Case 12!, t#e $ourt said: S2n determining a pu&li$ poli$y o% t#e state, $ourts are limited to a $onsideration o% t#e Constitution, t#e Budi$ial de$isions, t#e statutes, and the practice of go(ernment officers. S 2t mig#t ta-e more t#an a government &ureau or o%%i$e to lay do.n or esta&lis# a pu&li$ poli$y, as alleged in your $ommuni$ation, &ut $ourts $onsider t#e pra$ti$es o% government o%%i$ials as one o% t#e %our %a$tors in determining a pu&li$ poli$y o% t#e state. 2t #as &een $onsistently #eld in Ameri$a t#at under t#e prin$iples relating to t#e do$trine o% pu&li$ poli$y, as applied to t#e la. o% $ontra$ts, $ourts o% Busti$e .ill not re$ogni/e or up#old a transa$tion .#i$# its o&Be$t, operation, or tenden$y is $al$ulated to &e preBudi$ial to t#e pu&li$ .el%are, to sound moralit& or to ci(ic honest& 9Ritter vs. Mutual Ii%e 2ns. Co., 1') K.*. 1;)= Feding vs. >allag#ere 'A I.R.A. 811= 3ea/y vs. Allen, 1!; N.L. ;():. 2% Arellano Kniversity understood $learly t#e real essen$e o% s$#olars#ips and t#e motives .#i$# prompted t#is o%%i$e to issue Memorandum No. ;8, s. 1)A), it s#ould #ave not entered into a $ontra$t o% .aiver .it# Cui on *eptem&er 1 , 1)(1, .#i$# is a dire$t violation o% our Memorandum and an open $#allenge to t#e aut#ority o% t#e ,ire$tor o% Private *$#ools &e$ause t#e $ontra$t .as repugnant to sound morality and $ivi$ #onesty. And %inally, in >a&riel vs. Monte de Piedad, 7%%. >a/ette *upp. ,e$. ', 1)A1, p. '! .e read: S2n order to de$lare a $ontra$t void as against pu&li$ poli$y, a $ourt must %ind t#at t#e $ontra$t as to $onsideration or t#e t#ing to &e done, $ontravenes some esta&lis#ed interest o% so$iety, or is inconsistent with sound polic& and good morals or tends $learly to undermine t#e se$urity o% individual rig#ts. "#e poli$y enun$iated in Memorandum No. ;8, s. 1)A) is sound poli$y. #cholarship are awarded in recognition of merit not to keep outstanding students in school to *olster its prestige . 2n t#e understanding o% t#at university s$#olars#ips a.ard is a &usiness s$#eme designed to increase the *usiness potential of an education institution . "#us $on$eived it is not only in$onsistent .it# sound poli$y &ut also good morals. But .#at is moralsD Manresa #as t#is de%inition. 2t is good $ustoms= t#ose generally a$$epted prin$iples o% morality .#i$# #ave re$eived some -ind o% so$ial and pra$ti$al $on%irmation. "#e pra$ti$e o% a.arding s$#olars#ips to attra$t students and -eep t#em in s$#ool is not good $ustoms nor #as it re$eived some -ind o% so$ial and pra$ti$al $on%irmation e6$ept in some private institutions as in Arellano Kniversity. "#e Kniversity o% t#e P#ilippines .#i$# implements *e$tion ( o% Arti$le O23 o% t#e Constitution .it# re%eren$e to t#e giving o% %ree s$#olars#ips to gi%ted $#ildren, does not re?uire s$#olars to reim&urse t#e $orresponding value o% t#e s$#olars#ips i% t#ey trans%er to ot#er s$#ools. *o also .it# t#e leading $olleges and universities o% t#e Knited *tates a%ter .#i$# our edu$ational pra$ti$es or poli$ies are patterned. 2n t#ese institutions s$#olars#ips are granted not to attract and to keep *rilliant students in school for their propaganda

mine *ut to reward merit or help gifted students in whom societ& has an esta*lished interest or a %irst lien. 9Emp#asis supplied.: EFEREG7RE, t#e de$ision appealed %rom is #ere&y reversed and anot#er one s#all &e entered senten$ing t#e de%endant to pay to t#e plainti%% t#e sum o% P1, ;;.8!, .it# interest t#ereon at t#e legal rate %rom *eptem&er 1, 1)(A, date o% t#e institution o% t#is $ase, as .ell as t#e $osts, and dismissing de%endantSs $ounter$laim. 2t is so ordered. -engzon, C..., Padilla, )a*rador, 'e&es, ..-.)., -arrera, Parades, %izon, %e )eon and Nati(idad, ..., concur. -autista Angelo, .., reser(es his (ote. $he )awphil Pro/ect 0 Arellano )aw Foundation
A%"(#LIID Copyrig#t Poli$y E ,is$laimers E Priva$y Poli$y E Geed&a$KRI: http122www.asianlii.org2ph2cases2P3#C245 4279!.html