Macariola Vs Asuncion 114 SCRA 77; Civil Case 3010

Ponente Felix Makasiar

June 8, 1963 Judge Elias Decision No one appealed
October 16, 1963 Project For Partation, signed by respective
counsels of plaintiffs and petitioner (Bernadita R. Macariola)
October 23, 1963 Judge Elias Macariola Approved the
One of the lots was L1184 which is subdivided in to five (5) lots
denomated as L1184 A-E
July 31 1964 Dr.Arcadio Galapon bought lot L1184-E, with
certificate title no.2338
March 6, 1965- Galapon sold a portion to Judge Asuncion and
his wife. (1,306 sqm)
August 31, 1966 Conveyed their interest in L1184-E and
shares in Traders Manufacturing and Fishing Industries, INC.
Judge Asuncion was the president, Wife Victoria secretary,
Galapon was a stock holder as well.
August 6, 1968 Macariola Charged Judge Assuncion of acts
unbecoming of a judge
September 24, 1968 Assuncion Replies
May 27, 1968 Justice Palma recommends Assuncion to be
reprimanded on 1
st
and 2
nd
cause, and exonerated on the 3
rd

and 4
th
.
November 2, 1970, Judge Nepomuceno Dismissed the
complaint against Assuncion, 400K moral damages, 200k
exemplary damages, 50K nominal damages, 10k attorneys
fees.



Macariola is the only legal Heir to Francisco Reyes in his
first marriage with Felisa Espiras. It was a matter of who
has legal claims to the lot, Macariola owned most of it by
being the only heir to Felisa Espiras.
Sinforosa Bales (not to exceed 2/5, illegitimate), Luz
Bakunawa, Anacorita Reyes, Adela Reyes, Priscilla Reyes.






SC DECISION
Article 1491,p.5 New Civil Code - Art. 1491. The following
persons cannot acquire by purchase, even at a public or
judicial auction, either in person or through the
mediation of another:

(5) Justices, judges, prosecuting attorneys, clerks of superior and inferior
courts, and other officers and employees connected with the
administration of justice, the property and rights in litigation or levied
upon an execution before the court within whose jurisdiction or territory
they exercise their respective functions; this prohibition includes the act
of acquiring by assignment and shall apply to lawyers, with respect to
the property and rights which may be the object of any litigation in
which they may take part by virtue of their profession.
- Must take place during the pendency of the litigation
- The case was final because the lack of Appeal
- Judge Assuncion did not purchase the lot from the
Macariola
-Improper for him to acquire the lot, unwise , indiscreet
- Reminded of Canon 3

Article 14 The following cannot engage in commerce, either in person or by
proxy, nor can they hold any office or have any direct, administrative, or
financial intervention in commercial or industrial companies within the limits of
the districts, provinces, or towns in which they discharge their duties:
1. Justices of the Supreme Court, judges and officials of the department of public
prosecution in active service. This provision shall not be applicable to mayors,
municipal judges, and municipal prosecuting attorneys nor to those who by
chance are temporarily discharging the functions of judge or prosecuting
attorney.
5. Those who by virtue of laws or special provisions may not engage in
commerce in a determinate territory.
- A nature of Political law as it regulates the
relationship between the government and certain public
officers like judges and employees like justices and
judges
Political Law has been defined as that branch of public law which deals with the
organization and operation of the governmental organs of the State and define
the relations of the state with the inhabitants of its territory (People vs. Perfecto,
43 Phil. 887, 897 [1922]).
- Present Code of Commerce is the Spanish Code of Commerce with some
modifications
- Transfer of Sovereignty from Spain to United States, Code of Commerce
have been deem abrogated because where there is change of sovereignty,
the political laws of the former sovereign, whether compatible or not with
those of the new sovereign, are automatically abrogated, unless they are
expressly re-enacted by affirmative act of the new sovereign
- Article 14 Code of Commerce which
prohibits judges in engaging in commerce
is deem abrogated automatically upon
transfer of sovereignty from Spain to
America because it is political in Nature

-
- People vs. Perfecto (43 Phil. 887, 897 [1922]), this Court stated
that: "It is a general principle of the public law that on
acquisition of territory the previous political relations of the
ceded region are totally abrogated. "

- By well-settled public law, upon the cession of territory by one
nation to another, either following a conquest or otherwise, ...
those laws which are political in their nature and pertain to the
prerogatives of the former government immediately cease upon
the transfer of sovereignty. (Opinion, Atty. Gen., July 10, 1899).






Anti-Graft and Corrupt Practices Act of R.A 3019
Section 3. Corrupt practices of public officers. In addition
to acts or omissions of public officers already penalized
by existing law, the following shall constitute corrupt
practices of any public officer and are hereby declared to
be unlawful:
(f) Neglecting or refusing, after due demand or request,
without sufficient justification, to act within a reasonable
time on any matter pending before him for the purpose
of obtaining, directly or indirectly, from any person
interested in the matter some pecuniary or material
benefit or advantage, or for the purpose of favoring his
own interest or giving undue advantage in favor of or
discriminating against any other interested party.

- Assuncion cannot be held liable under the
aforestated paragraph because there is no showing
that the respondent participated or intervened IN
HIS OFFICIAL capacity in the business or
transactions of TraManuFishingIndust.INC
- -aforesaid corporation did not gained undue
advantage
- No provision in the 1937 or 1973 constitution or
existing laws expressly prohibiting judges or
members of the judiciary from engaging or having
interest in any lawful businesses.
- The purchase was made long after a final decision
of the civil case 3010 was deemed final as well as
two orders approving the project of partition, NO
LONGER SUBJECT to LITIGATION










Sec. 12, Rule XVIII of the Revised Civil Service Rules which
provides that:
Sec. 12. No officer or employee shall engage directly in any private business,
vocation, or profession or be connected with any commercial, credit, agricultural
or industrial undertaking without a written permission from the head of
Department: Provided, That this prohibition will be absolute in the case of those
officers and employees whose duties and responsibilities require that their entire
time be at the disposal of the Government: Provided, further, That if an employee
is granted permission to engage, in outside activities, the time so devoted outside
of office hours should be fixed by the chief of the agency to the end that it will not
impair in any way the efficiency of the officer or employee: And provided, finally,
That no permission is necessary in the case of investments, made by an officer or
employee, which do not involve any real or apparent conflict between his private
interests and public duties, or in any way influence him in the discharge of his
duties, and he shall not take part in the management of the enterprise or become an officer
or member of the board of directors.

- The prohibition should be in a law or part of the
constitution and not merely an administrative rule or
regulation.
- Assuncion is a Member of the Judiciary and is covered by
R.A 296, as amended, JUDICIARY ACT of 1948 and by
Section 7, article 10 1973, Constitution.
- The power to remove judges was then vested in the
President and not the Civil Service Comission on the
grounds of misconduct and inefficiency,
- Only members of the classified service, permanent, are
under the jurisdiction of the CSS
-
















25. Personal investments and Relations, Canon of Judicial
Ethics
A Judge should abstain from making personal investments in enterprises
which are apt to be involved in litigation in his court; and, after
accession to the bench, he should not retain such investments
previously made, longer than a period sufficient to enable him to
dispose of them without serious loss. It is desirable that he should, so
far as reasonably possible, refrain from all relations which would
normally tend to arouse the suspicion that such relations warp or bias
his judgment, or prevent his impartial attitude of mind in the
administration of his judicial duties.chanrobles virtual law library
It is highly improper for a judge to utilize information coming to him in a
juridical capacity for purposes of speculation and it detracts from the
public confidence in his integrity and the soundness of judicial judgment
for him at any time to become a speculative investor upon the hazard of
a margin
-deserved commendation for withdrawal from the firm
and before it became involved in any court litigation
- It is not illegal, as long as the friendly relation between
Dominador Tan and Elias Asuncion did not influence his
official actuations as a judge where said persons are
concerned.
- No tangible proof,
DECISION

In conclusion, while respondent Judge Asuncion, now
Associate Justice of the Court of Appeals, did not violate
any law in acquiring by purchase a parcel of land which
was in litigation in his court and in engaging in business
by joining a private corporation during his incumbency as
judge of the Court of First Instance of Leyte, he should be
reminded to be more discreet in his private and business
activities, because his conduct as a member of the
Judiciary must not only be characterized with propriety
but must always be above suspicion. WHEREFORE, THE
RESPONDENT ASSOCIATE JUSTICE OF THE COURT OF
APPEALS IS HEREBY REMINDED TO BE MORE DISCREET IN
HIS PRIVATE AND BUSINESS ACTIVITIES