Escolar Documentos
Profissional Documentos
Cultura Documentos
DECISION
CORONA, J.:
The Fund is sourced from the collection of the BIR and the BOC in excess of
their revenue targets for the year, as determined by the Development Budget
and Coordinating Committee (DBCC). Any incentive or reward is taken from
the fund and allocated to the BIR and the BOC in proportion to their
contribution in the excess collection of the targeted amount of tax revenue.5
The Boards in the BIR and the BOC are composed of the Secretary of the
Department of Finance (DOF) or his/her Undersecretary, the Secretary of the
Department of Budget and Management (DBM) or his/her Undersecretary, the
Director General of the National Economic Development Authority (NEDA) or
his/her Deputy Director General, the Commissioners of the BIR and the BOC
or their Deputy Commissioners, two representatives from the rank-and-file
employees and a representative from the officials nominated by their
recognized organization.6
Each Board has the duty to (1) prescribe the rules and guidelines for the
allocation, distribution and release of the Fund; (2) set criteria and procedures
for removing from the service officials and employees whose revenue
collection falls short of the target; (3) terminate personnel in accordance with
the criteria adopted by the Board; (4) prescribe a system for performance
evaluation; (5) perform other functions, including the issuance of rules and
regulations and (6) submit an annual report to Congress.7
The DOF, DBM, NEDA, BIR, BOC and the Civil Service Commission (CSC)
were tasked to promulgate and issue the implementing rules and regulations
of RA 9335,8 to be approved by a Joint Congressional Oversight Committee
created for such purpose.9
Petitioners, invoking their right as taxpayers filed this petition challenging the
constitutionality of RA 9335, a tax reform legislation. They contend that, by
establishing a system of rewards and incentives, the law "transform[s] the
officials and employees of the BIR and the BOC into mercenaries and bounty
hunters" as they will do their best only in consideration of such rewards. Thus,
the system of rewards and incentives invites corruption and undermines the
constitutionally mandated duty of these officials and employees to serve the
people with utmost responsibility, integrity, loyalty and efficiency.
Petitioners also claim that limiting the scope of the system of rewards and
incentives only to officials and employees of the BIR and the BOC violates the
constitutional guarantee of equal protection. There is no valid basis for
classification or distinction as to why such a system should not apply to
officials and employees of all other government agencies.
In addition, petitioners assert that the law unduly delegates the power to fix
revenue targets to the President as it lacks a sufficient standard on that
matter. While Section 7(b) and (c) of RA 9335 provides that BIR and BOC
officials may be dismissed from the service if their revenue collections fall
short of the target by at least 7.5%, the law does not, however, fix the revenue
targets to be achieved. Instead, the fixing of revenue targets has been
delegated to the President without sufficient standards. It will therefore be
easy for the President to fix an unrealistic and unattainable target in order to
dismiss BIR or BOC personnel.
In this case, aside from the general claim that the dispute has ripened into a
judicial controversy by the mere enactment of the law even without any further
overt act,13 petitioners fail either to assert any specific and concrete legal
claim or to demonstrate any direct adverse effect of the law on them. They are
unable to show a personal stake in the outcome of this case or an injury to
themselves. On this account, their petition is procedurally infirm.
This notwithstanding, public interest requires the resolution of the
constitutional issues raised by petitioners. The grave nature of their
allegations tends to cast a cloud on the presumption of constitutionality in
favor of the law. And where an action of the legislative branch is alleged to
have infringed the Constitution, it becomes not only the right but in fact the
duty of the judiciary to settle the dispute.14
Accountability of
Public Officers
Public office is a public trust. It must be discharged by its holder not for his
own personal gain but for the benefit of the public for whom he holds it in trust.
By demanding accountability and service with responsibility, integrity, loyalty,
efficiency, patriotism and justice, all government officials and employees have
the duty to be responsive to the needs of the people they are called upon to
serve.
The presumption is disputable but proof to the contrary is required to rebut it.
It cannot be overturned by mere conjecture or denied in advance (as
petitioners would have the Court do) specially in this case where it is an
underlying principle to advance a declared public policy.
Petitioners’ claim that the implementation of RA 9335 will turn BIR and BOC
officials and employees into "bounty hunters and mercenaries" is not only
without any factual and legal basis; it is also purely speculative.
Public service is its own reward. Nevertheless, public officers may by law be
rewarded for exemplary and exceptional performance. A system of incentives
for exceeding the set expectations of a public office is not anathema to the
concept of public accountability. In fact, it recognizes and reinforces
dedication to duty, industry, efficiency and loyalty to public service of
deserving government personnel.
In United States v. Matthews,17 the U.S. Supreme Court validated a law which
awards to officers of the customs as well as other parties an amount not
exceeding one-half of the net proceeds of forfeitures in violation of the laws
against smuggling. Citing Dorsheimer v. United States,18 the U.S. Supreme
Court said:
In the same vein, employees of the BIR and the BOC may by law be entitled
to a reward when, as a consequence of their zeal in the enforcement of tax
and customs laws, they exceed their revenue targets. In addition, RA 9335
establishes safeguards to ensure that the reward will not be claimed if it will
be either the fruit of "bounty hunting or mercenary activity" or the product of
the irregular performance of official duties. One of these precautionary
measures is embodied in Section 8 of the law:
Equal Protection
Equality guaranteed under the equal protection clause is equality under the
same conditions and among persons similarly situated; it is equality among
equals, not similarity of treatment of persons who are classified based on
substantial differences in relation to the object to be accomplished.19When
things or persons are different in fact or circumstance, they may be treated in
law differently. In Victoriano v. Elizalde Rope Workers’ Union,20 this Court
declared:
(1) Assess and collect all taxes, fees and charges and account for
all revenues collected;
(2) Exercise duly delegated police powers for the proper performance of
its functions and duties;
(3) Prevent and prosecute tax evasions and all other illegal economic
activities;
(4) Exercise supervision and control over its constituent and subordinate
units; and
(3) Exercise police authority for the enforcement of tariff and customs
laws;
(4) Prevent and suppress smuggling, pilferage and all other economic
frauds within all ports of entry;
(5) Supervise and control exports, imports, foreign mails and the
clearance of vessels and aircrafts in all ports of entry;
(7) Prevent and prosecute smuggling and other illegal activities in all
ports under its jurisdiction;
Both the BIR and the BOC are bureaus under the DOF. They principally
perform the special function of being the instrumentalities through which the
State exercises one of its great inherent functions – taxation. Indubitably, such
substantial distinction is germane and intimately related to the purpose of the
law. Hence, the classification and treatment accorded to the BIR and the BOC
under RA 9335 fully satisfy the demands of equal protection.
Undue Delegation
Two tests determine the validity of delegation of legislative power: (1) the
completeness test and (2) the sufficient standard test. A law is complete when
it sets forth therein the policy to be executed, carried out or implemented by
the delegate.26 It lays down a sufficient standard when it provides adequate
guidelines or limitations in the law to map out the boundaries of the delegate’s
authority and prevent the delegation from running riot.27 To be sufficient, the
standard must specify the limits of the delegate’s authority, announce the
legislative policy and identify the conditions under which it is to be
implemented.28
RA 9335 adequately states the policy and standards to guide the President in
fixing revenue targets and the implementing agencies in carrying out the
provisions of the law. Section 2 spells out the policy of the law:
On the other hand, Section 7 specifies the limits of the Board’s authority and
identifies the conditions under which officials and employees whose revenue
collection falls short of the target by at least 7.5% may be removed from the
service:
SEC. 7. Powers and Functions of the Board. – The Board in the agency
shall have the following powers and functions:
(b) To set the criteria and procedures for removing from service
officials and employees whose revenue collection falls short of the
target by at least seven and a half percent (7.5%), with due
consideration of all relevant factors affecting the level of
collection as provided in the rules and regulations promulgated under
this Act, subject to civil service laws, rules and regulations and
compliance with substantive and procedural due process:
Provided, That the following exemptions shall apply:
At any rate, this Court has recognized the following as sufficient standards:
"public interest," "justice and equity," "public convenience and welfare" and
"simplicity, economy and welfare."33 In this case, the declared policy of
optimization of the revenue-generation capability and collection of the BIR and
the BOC is infused with public interest.
Separation Of Powers
The Joint Congressional Oversight Committee in RA 9335 was created for the
purpose of approving the implementing rules and regulations (IRR) formulated
by the DOF, DBM, NEDA, BIR, BOC and CSC. On May 22, 2006, it approved
the said IRR. From then on, it became functus officio and ceased to exist.
Hence, the issue of its alleged encroachment on the executive function of
implementing and enforcing the law may be considered moot and academic.
This notwithstanding, this might be as good a time as any for the Court to
confront the issue of the constitutionality of the Joint Congressional Oversight
Committee created under RA 9335 (or other similar laws for that matter).
The scholarly discourse of Mr. Justice (now Chief Justice) Puno on the
concept of congressional oversight in Macalintal v. Commission on
Elections34 is illuminating:
a. Scrutiny
b. Congressional investigation
c. Legislative supervision
The third and most encompassing form by which Congress exercises its
oversight power is thru legislative supervision. "Supervision" connotes a
continuing and informed awareness on the part of a congressional
committee regarding executive operations in a given administrative
area. While both congressional scrutiny and investigation involve inquiry
into past executive branch actions in order to influence future executive
branch performance, congressional supervision allows Congress to
scrutinize the exercise of delegated law-making authority, and permits
Congress to retain part of that delegated authority.
Any action or step beyond that will undermine the separation of powers
guaranteed by the Constitution. Legislative vetoes fall in this class.
Congress has two options when enacting legislation to define national policy
within the broad horizons of its legislative competence.45 It can itself formulate
the details or it can assign to the executive branch the responsibility for
making necessary managerial decisions in conformity with those
standards.46 In the latter case, the law must be complete in all its essential
terms and conditions when it leaves the hands of the legislature.47 Thus, what
is left for the executive branch or the concerned administrative agency when it
formulates rules and regulations implementing the law is to fill up details
(supplementary rule-making) or ascertain facts necessary to bring the law into
actual operation (contingent rule-making).48
Considered Opinion of
Mr. Justice Dante O. Tinga
Legislative power (or the power to propose, enact, amend and repeal
laws)53 is vested in Congress which consists of two chambers, the Senate and
the House of Representatives. A valid exercise of legislative power requires
the act of both chambers. Corrollarily, it can be exercised neither solely by
one of the two chambers nor by a committee of either or both chambers.
Thus, assuming the validity of a legislative veto, both a single-chamber
legislative veto and a congressional committee legislative veto are invalid.
Additionally, Section 27(1), Article VI of the Constitution provides:
Section 27. (1) Every bill passed by the Congress shall, before it
becomes a law, be presented to the President. If he approves the
same, he shall sign it, otherwise, he shall veto it and return the same
with his objections to the House where it originated, which shall enter
the objections at large in its Journal and proceed to reconsider it. If,
after such reconsideration, two-thirds of all the Members of such House
shall agree to pass the bill, it shall be sent, together with the objections,
to the other House by which it shall likewise be reconsidered, and if
approved by two-thirds of all the Members of that House, it shall
become a law. In all such cases, the votes of each House shall be
determined by yeas or nays, and the names of the members voting for
or against shall be entered in its Journal. The President shall
communicate his veto of any bill to the House where it originated within
thirty days after the date of receipt thereof; otherwise, it shall become a
law as if he had signed it. (emphasis supplied)
In sum, two steps are required before a bill becomes a law. First, it must be
approved by both Houses of Congress.54 Second, it must be presented to and
approved by the President.55 As summarized by Justice Isagani Cruz56 and Fr.
Joaquin G. Bernas, S.J.57, the following is the procedure for the approval of
bills:
The first reading involves only a reading of the number and title of the
measure and its referral by the Senate President or the Speaker to the
proper committee for study.
Once reported out, the bill shall be calendared for second reading. It is
at this stage that the bill is read in its entirety, scrutinized, debated upon
and amended when desired. The second reading is the most important
stage in the passage of a bill.
The bill as approved on second reading is printed in its final form and
copies thereof are distributed at least three days before the third
reading. On the third reading, the members merely register their votes
and explain them if they are allowed by the rules. No further debate is
allowed.
Once the bill passes third reading, it is sent to the other chamber, where
it will also undergo the three readings. If there are differences between
the versions approved by the two chambers, a conference
committee58 representing both Houses will draft a compromise measure
that if ratified by the Senate and the House of Representatives will then
be submitted to the President for his consideration.
From the moment the law becomes effective, any provision of law that
empowers Congress or any of its members to play any role in the
implementation or enforcement of the law violates the principle of separation
of powers and is thus unconstitutional. Under this principle, a provision that
requires Congress or its members to approve the implementing rules of a law
after it has already taken effect shall be unconstitutional, as is a provision that
allows Congress or its members to overturn any directive or ruling made by
the members of the executive branch charged with the implementation of the
law.
The next question to be resolved is: what is the effect of the unconstitutionality
of Section 12 of RA 9335 on the other provisions of the law? Will it render the
entire law unconstitutional? No.
In Tatad v. Secretary of the Department of Energy,65 the Court laid down the
following rules:
The exception to the general rule is that when the parts of a statute are
so mutually dependent and connected, as conditions, considerations,
inducements, or compensations for each other, as to warrant a belief
that the legislature intended them as a whole, the nullity of one part will
vitiate the rest. In making the parts of the statute dependent, conditional,
or connected with one another, the legislature intended the statute to be
carried out as a whole and would not have enacted it if one part is void,
in which case if some parts are unconstitutional, all the other provisions
thus dependent, conditional, or connected must fall with them.
SO ORDERED.
G.R. No. 147406 July 14, 2008
VENANCIO FIGUEROA y CERVANTES,1 Petitioner,
vs.
PEOPLE OF THE PHILIPPINES, Respondent.
DECISION
NACHURA, J.:
When is a litigant estopped by laches from assailing the jurisdiction of a tribunal? This is the
paramount issue raised in this petition for review of the February 28, 2001 Decision2 of the Court of
Appeals (CA) in CA-G.R. CR No. 22697.
On July 8, 1994, an information3 for reckless imprudence resulting in homicide was filed against the
petitioner before the Regional Trial Court (RTC) of Bulacan, Branch 18.4 The case was docketed as
Criminal Case No. 2235-M-94.5 Trial on the merits ensued and on August 19, 1998, the trial court
convicted the petitioner as charged.6 In his appeal before the CA, the petitioner questioned, among
others, for the first time, the trial court’s jurisdiction.7
The appellate court, however, in the challenged decision, considered the petitioner to have actively
participated in the trial and to have belatedly attacked the jurisdiction of the RTC; thus, he was
already estopped by laches from asserting the trial court’s lack of jurisdiction. Finding no other
ground to reverse the trial court’s decision, the CA affirmed the petitioner’s conviction but modified
the penalty imposed and the damages awarded.8
Dissatisfied, the petitioner filed the instant petition for review on certiorari raising the following issues
for our resolution:
a. Does the fact that the petitioner failed to raise the issue of jurisdiction during the trial of
this case, which was initiated and filed by the public prosecutor before the wrong court,
constitute laches in relation to the doctrine laid down in Tijam v. Sibonghanoy,
notwithstanding the fact that said issue was immediately raised in petitioner’s appeal to the
Honorable Court of Appeals? Conversely, does the active participation of the petitioner in the
trial of his case, which is initiated and filed not by him but by the public prosecutor, amount to
estoppel?
b. Does the admission of the petitioner that it is difficult to immediately stop a bus while it is
running at 40 kilometers per hour for the purpose of avoiding a person who unexpectedly
crossed the road, constitute enough incriminating evidence to warrant his conviction for the
crime charged?
c. Is the Honorable Court of Appeals justified in considering the place of accident as falling
within Item 4 of Section 35 (b) of the Land Transportation and Traffic Code, and
subsequently ruling that the speed limit thereto is only 20 kilometers per hour, when no
evidence whatsoever to that effect was ever presented by the prosecution during the trial of
this case?
d. Is the Honorable Court of Appeals justified in convicting the petitioner for homicide through
reckless imprudence (the legally correct designation is "reckless imprudence resulting to
homicide") with violation of the Land Transportation and Traffic Code when the prosecution
did not prove this during the trial and, more importantly, the information filed against the
petitioner does not contain an allegation to that effect?
e. Does the uncontroverted testimony of the defense witness Leonardo Hernal that the victim
unexpectedly crossed the road resulting in him getting hit by the bus driven by the petitioner
not enough evidence to acquit him of the crime charged?9
Applied uniformly is the familiar rule that the jurisdiction of the court to hear and decide a case is
conferred by the law in force at the time of the institution of the action, unless such statute provides
for a retroactive application thereof.10 In this case, at the time the criminal information for reckless
imprudence resulting in homicide with violation of the Automobile Law (now Land Transportation and
Traffic Code) was filed, Section 32(2) of Batas Pambansa (B.P.) Blg. 12911 had already been
amended by Republic Act No. 7691.12 The said provision thus reads:
Sec. 32. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts and Municipal Circuit Trial
Courts in Criminal Cases.—Except in cases falling within the exclusive original jurisdiction of
Regional Trial Courts and the Sandiganbayan, the Metropolitan Trial Courts, Municipal Trial Courts,
and Municipal Circuit Trial Courts shall exercise:
xxxx
(2) Exclusive original jurisdiction over all offenses punishable with imprisonment not exceeding six
(6) years irrespective of the amount of fine, and regardless of other imposable accessory or other
penalties, including the civil liability arising from such offenses or predicated thereon, irrespective of
kind, nature, value or amount thereof: Provided, however, That in offenses involving damage to
property through criminal negligence, they shall have exclusive original jurisdiction thereof.
As the imposable penalty for the crime charged herein is prision correccional in its medium and
maximum periods or imprisonment for 2 years, 4 months and 1 day to 6 years,13 jurisdiction to hear
and try the same is conferred on the Municipal Trial Courts (MTCs). Clearly, therefore, the RTC of
Bulacan does not have jurisdiction over Criminal Case No. 2235-M-94.
While both the appellate court and the Solicitor General acknowledge this fact, they nevertheless are
of the position that the principle of estoppel by laches has already precluded the petitioner from
questioning the jurisdiction of the RTC—the trial went on for 4 years with the petitioner actively
participating therein and without him ever raising the jurisdictional infirmity. The petitioner, for his
part, counters that the lack of jurisdiction of a court over the subject matter may be raised at any time
even for the first time on appeal. As undue delay is further absent herein, the principle of laches will
not be applicable.
To settle once and for all this problem of jurisdiction vis-à-vis estoppel by laches, which continuously
confounds the bench and the bar, we shall analyze the various Court decisions on the matter.
As early as 1901, this Court has declared that unless jurisdiction has been conferred by some
legislative act, no court or tribunal can act on a matter submitted to it.14 We went on to state in U.S.
v. De La Santa15 that:
It has been frequently held that a lack of jurisdiction over the subject-matter is fatal, and subject to
objection at any stage of the proceedings, either in the court below or on appeal (Ency. of Pl. & Pr.,
vol. 12, p. 189, and large array of cases there cited), and indeed, where the subject-matter is not
within the jurisdiction, the court may dismiss the proceeding ex mero motu. (4 Ill., 133; 190 Ind., 79;
Chipman vs. Waterbury, 59 Conn., 496.)
Jurisdiction over the subject-matter in a judicial proceeding is conferred by the sovereign authority
which organizes the court; it is given only by law and in the manner prescribed by law and an
objection based on the lack of such jurisdiction can not be waived by the parties. x x x16
4. The operation of the principle of estoppel on the question of jurisdiction seemingly depends upon
whether the lower court actually had jurisdiction or not. If it had no jurisdiction, but the case was tried
and decided upon the theory that it had jurisdiction, the parties are not barred, on appeal, from
assailing such jurisdiction, for the same "must exist as a matter of law, and may not be conferred by
consent of the parties or by estoppel" (5 C.J.S., 861-863). However, if the lower court had
jurisdiction, and the case was heard and decided upon a given theory, such, for instance, as that the
court had no jurisdiction, the party who induced it to adopt such theory will not be permitted, on
appeal, to assume an inconsistent position—that the lower court had jurisdiction. Here, the principle
of estoppel applies. The rule that jurisdiction is conferred by law, and does not depend upon the will
of the parties, has no bearing thereon. Thus, Corpus Juris Secundum says:
Where accused has secured a decision that the indictment is void, or has been granted an
instruction based on its defective character directing the jury to acquit, he is estopped, when
subsequently indicted, to assert that the former indictment was valid. In such case, there may be a
new prosecution whether the indictment in the former prosecution was good or bad. Similarly, where,
after the jury was impaneled and sworn, the court on accused's motion quashed the information on
the erroneous assumption that the court had no jurisdiction, accused cannot successfully plead
former jeopardy to a new information. x x x (22 C.J.S., sec. 252, pp. 388-389; italics ours.)
Where accused procured a prior conviction to be set aside on the ground that the court was without
jurisdiction, he is estopped subsequently to assert, in support of a defense of previous jeopardy, that
such court had jurisdiction." (22 C.J.S. p. 378.)18
But in Pindañgan Agricultural Co., Inc. v. Dans,19 the Court, in not sustaining the plea of lack of
jurisdiction by the plaintiff-appellee therein, made the following observations:
It is surprising why it is only now, after the decision has been rendered, that the plaintiff-appellee
presents the question of this Court’s jurisdiction over the case. Republic Act No. 2613 was enacted
on August 1, 1959. This case was argued on January 29, 1960. Notwithstanding this fact, the
jurisdiction of this Court was never impugned until the adverse decision of this Court was handed
down. The conduct of counsel leads us to believe that they must have always been of the belief that
notwithstanding said enactment of Republic Act 2613 this Court has jurisdiction of the case, such
conduct being born out of a conviction that the actual real value of the properties in question actually
exceeds the jurisdictional amount of this Court (over P200,000). Our minute resolution in G.R. No. L-
10096, Hyson Tan, et al. vs. Filipinas Compaña de Seguros, et al., of March 23, 1956, a parallel
case, is applicable to the conduct of plaintiff-appellee in this case, thus:
x x x that an appellant who files his brief and submits his case to the Court of Appeals for decision,
without questioning the latter’s jurisdiction until decision is rendered therein, should be considered as
having voluntarily waived so much of his claim as would exceed the jurisdiction of said Appellate
Court; for the reason that a contrary rule would encourage the undesirable practice of appellants
submitting their cases for decision to the Court of Appeals in expectation of favorable judgment, but
with intent of attacking its jurisdiction should the decision be unfavorable: x x x20
Then came our ruling in Tijam v. Sibonghanoy21 that a party may be barred by laches from invoking
lack of jurisdiction at a late hour for the purpose of annulling everything done in the case with the
active participation of said party invoking the plea. We expounded, thus:
A party may be estopped or barred from raising a question in different ways and for different
reasons. Thus, we speak of estoppel in pais, of estoppel by deed or by record, and of estoppel by
laches.
Laches, in a general sense, is failure or neglect, for an unreasonable and unexplained length of time,
to do that which, by exercising due diligence, could or should have been done earlier; it is
negligence or omission to assert a right within a reasonable time, warranting a presumption that the
party entitled to assert it either has abandoned it or declined to assert it.
The doctrine of laches or of "stale demands" is based upon grounds of public policy which requires,
for the peace of society, the discouragement of stale claims and, unlike the statute of limitations, is
not a mere question of time but is principally a question of the inequity or unfairness of permitting a
right or claim to be enforced or asserted.
It has been held that a party cannot invoke the jurisdiction of a court to secure affirmative relief
against his opponent and, after obtaining or failing to obtain such relief, repudiate or question that
same jurisdiction (Dean vs. Dean, 136 Or. 694, 86 A.L.R. 79). In the case just cited, by way of
explaining the rule, it was further said that the question whether the court had jurisdiction either of
the subject matter of the action or of the parties was not important in such cases because the party
is barred from such conduct not because the judgment or order of the court is valid and conclusive
as an adjudication, but for the reason that such a practice cannot be tolerated—obviously for
reasons of public policy.
Furthermore, it has also been held that after voluntarily submitting a cause and encountering an
adverse decision on the merits, it is too late for the loser to question the jurisdiction or power of the
court (Pease vs. Rathbun-Jones etc., 243 U.S. 273, 61 L. Ed. 715, 37 S.Ct. 283; St. Louis etc. vs.
McBride, 141 U.S. 127, 35 L. Ed. 659). And in Littleton vs. Burgess, 16 Wyo. 58, the Court said that
it is not right for a party who has affirmed and invoked the jurisdiction of a court in a particular matter
to secure an affirmative relief, to afterwards deny that same jurisdiction to escape a penalty.
Upon this same principle is what We said in the three cases mentioned in the resolution of the Court
of Appeals of May 20, 1963 (supra)—to the effect that we frown upon the "undesirable practice" of a
party submitting his case for decision and then accepting the judgment, only if favorable, and
attacking it for lack of jurisdiction, when adverse—as well as in Pindañgan etc. vs. Dans et al., G.R.
L-14591, September 26, 1962; Montelibano et al. vs. Bacolod-Murcia Milling Co., Inc., G.R. L-15092;
Young Men Labor Union etc. vs. The Court of Industrial Relations et al., G.R. L-20307, Feb. 26,
1965, and Mejia vs. Lucas, 100 Phil. p. 277.
The facts of this case show that from the time the Surety became a quasi-party on July 31, 1948, it
could have raised the question of the lack of jurisdiction of the Court of First Instance of Cebu to take
cognizance of the present action by reason of the sum of money involved which, according to the
law then in force, was within the original exclusive jurisdiction of inferior courts. It failed to do so.
Instead, at several stages of the proceedings in the court a quo, as well as in the Court of Appeals, it
invoked the jurisdiction of said courts to obtain affirmative relief and submitted its case for a final
adjudication on the merits. It was only after an adverse decision was rendered by the Court of
Appeals that it finally woke up to raise the question of jurisdiction. Were we to sanction such conduct
on its part, We would in effect be declaring as useless all the proceedings had in the present case
since it was commenced on July 19, 1948 and compel the judgment creditors to go up their Calvary
once more. The inequity and unfairness of this is not only patent but revolting.22
For quite a time since we made this pronouncement in Sibonghanoy, courts and tribunals, in
resolving issues that involve the belated invocation of lack of jurisdiction, have applied the principle
of estoppel by laches. Thus, in Calimlim v. Ramirez,23 we pointed out that Sibonghanoy was
developing into a general rule rather than the exception:
A rule that had been settled by unquestioned acceptance and upheld in decisions so numerous to
cite is that the jurisdiction of a court over the subject-matter of the action is a matter of law and may
not be conferred by consent or agreement of the parties. The lack of jurisdiction of a court may be
raised at any stage of the proceedings, even on appeal. This doctrine has been qualified by recent
pronouncements which stemmed principally from the ruling in the cited case of Sibonghanoy. It is to
be regretted, however, that the holding in said case had been applied to situations which were
obviously not contemplated therein. The exceptional circumstance involved in Sibonghanoy which
justified the departure from the accepted concept of non-waivability of objection to jurisdiction has
been ignored and, instead a blanket doctrine had been repeatedly upheld that rendered the
supposed ruling in Sibonghanoy not as the exception, but rather the general rule, virtually
overthrowing altogether the time-honored principle that the issue of jurisdiction is not lost by waiver
or by estoppel.
In Sibonghanoy, the defense of lack of jurisdiction of the court that rendered the questioned ruling
was held to be barred by estoppel by laches. It was ruled that the lack of jurisdiction having been
raised for the first time in a motion to dismiss filed almost fifteen (15) years after the questioned
ruling had been rendered, such a plea may no longer be raised for being barred by laches. As
defined in said case, laches is "failure or neglect, for an unreasonable and unexplained length of
time, to do that which, by exercising due diligence, could or should have been done earlier; it is
negligence or omission to assert a right within a reasonable time, warranting a presumption that the
party entitled to assert has abandoned it or declined to assert it.24
In Calimlim, despite the fact that the one who benefited from the plea of lack of jurisdiction was the
one who invoked the court’s jurisdiction, and who later obtained an adverse judgment therein, we
refused to apply the ruling in Sibonghanoy. The Court accorded supremacy to the time-honored
principle that the issue of jurisdiction is not lost by waiver or by estoppel.
Yet, in subsequent cases decided after Calimlim, which by sheer volume are too plentiful to mention,
the Sibonghanoy doctrine, as foretold in Calimlim, became the rule rather than the exception. As
such, in Soliven v. Fastforms Philippines, Inc.,25 the Court ruled:
While it is true that jurisdiction may be raised at any time, "this rule presupposes that estoppel has
not supervened." In the instant case, respondent actively participated in all stages of the
proceedings before the trial court and invoked its authority by asking for an affirmative relief. Clearly,
respondent is estopped from challenging the trial court’s jurisdiction, especially when an adverse
judgment has been rendered. In PNOC Shipping and Transport Corporation vs. Court of Appeals,
we held:
Moreover, we note that petitioner did not question at all the jurisdiction of the lower court x x x in its
answers to both the amended complaint and the second amended complaint. It did so only in its
motion for reconsideration of the decision of the lower court after it had received an adverse
decision. As this Court held in Pantranco North Express, Inc. vs. Court of Appeals (G.R. No. 105180,
July 5, 1993, 224 SCRA 477, 491), participation in all stages of the case before the trial court, that
included invoking its authority in asking for affirmative relief, effectively barred petitioner by estoppel
from challenging the court’s jurisdiction. Notably, from the time it filed its answer to the second
amended complaint on April 16, 1985, petitioner did not question the lower court’s jurisdiction. It was
only on December 29, 1989 when it filed its motion for reconsideration of the lower court’s decision
that petitioner raised the question of the lower court’s lack of jurisdiction. Petitioner thus foreclosed
its right to raise the issue of jurisdiction by its own inaction. (italics ours)
Similarly, in the subsequent case of Sta. Lucia Realty and Development, Inc. vs. Cabrigas, we ruled:
In the case at bar, it was found by the trial court in its 30 September 1996 decision in LCR Case No.
Q-60161(93) that private respondents (who filed the petition for reconstitution of titles) failed to
comply with both sections 12 and 13 of RA 26 and therefore, it had no jurisdiction over the subject
matter of the case. However, private respondents never questioned the trial court’s jurisdiction over
its petition for reconstitution throughout the duration of LCR Case No. Q-60161(93). On the contrary,
private respondents actively participated in the reconstitution proceedings by filing pleadings and
presenting its evidence. They invoked the trial court’s jurisdiction in order to obtain affirmative relief –
the reconstitution of their titles. Private respondents have thus foreclosed their right to raise the issue
of jurisdiction by their own actions.
The Court has constantly upheld the doctrine that while jurisdiction may be assailed at any stage, a
litigant’s participation in all stages of the case before the trial court, including the invocation of its
authority in asking for affirmative relief, bars such party from challenging the court’s jurisdiction
(PNOC Shipping and Transport Corporation vs. Court of Appeals, 297 SCRA 402 [1998]). A party
cannot invoke the jurisdiction of a court to secure affirmative relief against his opponent and after
obtaining or failing to obtain such relief, repudiate or question that same jurisdiction (Asset
Privatization Trust vs. Court of Appeals, 300 SCRA 579 [1998]; Province of Bulacan vs. Court of
Appeals, 299 SCRA 442 [1998]). The Court frowns upon the undesirable practice of a party
participating in the proceedings and submitting his case for decision and then accepting judgment,
only if favorable, and attacking it for lack of jurisdiction, when adverse (Producers Bank of the
Philippines vs. NLRC, 298 SCRA 517 [1998], citing Ilocos Sur Electric Cooperative, Inc. vs. NLRC,
241 SCRA 36 [1995]). (italics ours)26
Petitioner argues that the CA’s affirmation of the trial court’s dismissal of its case was erroneous,
considering that a full-blown trial had already been conducted. In effect, it contends that lack of
jurisdiction could no longer be used as a ground for dismissal after trial had ensued and ended.
The above argument is anchored on estoppel by laches, which has been used quite successfully in
a number of cases to thwart dismissals based on lack of jurisdiction. Tijam v. Sibonghanoy, in which
this doctrine was espoused, held that a party may be barred from questioning a court’s jurisdiction
after being invoked to secure affirmative relief against its opponent. In fine, laches prevents the issue
of lack of jurisdiction from being raised for the first time on appeal by a litigant whose purpose is to
annul everything done in a trial in which it has actively participated.
Laches is defined as the "failure or neglect for an unreasonable and unexplained length of time, to
do that which, by exercising due diligence, could or should have been done earlier; it is negligence
or omission to assert a right within a reasonable time, warranting a presumption that the party
entitled to assert it either has abandoned it or declined to assert it."
The ruling in Sibonghanoy on the matter of jurisdiction is, however, the exception rather than the
rule. Estoppel by laches may be invoked to bar the issue of lack of jurisdiction only in cases in
1avvphi 1
which the factual milieu is analogous to that in the cited case. In such controversies, laches should
be clearly present; that is, lack of jurisdiction must have been raised so belatedly as to warrant the
presumption that the party entitled to assert it had abandoned or declined to assert it. That
Sibonghanoy applies only to exceptional circumstances is clarified in Calimlim v. Ramirez, which we
quote:
A rule that had been settled by unquestioned acceptance and upheld in decisions so numerous to
cite is that the jurisdiction of a court over the subject-matter of the action is a matter of law and may
not be conferred by consent or agreement of the parties. The lack of jurisdiction of a court may be
raised at any stage of the proceedings, even on appeal. This doctrine has been qualified by recent
pronouncements which stemmed principally from the ruling in the cited case of Sibonghanoy. It is to
be regretted, however, that the holding in said case had been applied to situations which were
obviously not contemplated therein. The exceptional circumstance involved in Sibonghanoy which
justified the departure from the accepted concept of non-waivability of objection to jurisdiction has
been ignored and, instead a blanket doctrine had been repeatedly upheld that rendered the
supposed ruling in Sibonghanoy not as the exception, but rather the general rule, virtually
overthrowing altogether the time-honored principle that the issue of jurisdiction is not lost by waiver
or by estoppel.
Indeed, the general rule remains: a court’s lack of jurisdiction may be raised at any stage of the
proceedings, even on appeal. The reason is that jurisdiction is conferred by law, and lack of it affects
the very authority of the court to take cognizance of and to render judgment on the action. Moreover,
jurisdiction is determined by the averments of the complaint, not by the defenses contained in the
answer.30
Also, in Mangaliag v. Catubig-Pastoral,31 even if the pleader of lack of jurisdiction actively took part in
the trial proceedings by presenting a witness to seek exoneration, the Court, reiterating the doctrine
in Calimlim, said:
Private respondent argues that the defense of lack of jurisdiction may be waived by estoppel through
active participation in the trial. Such, however, is not the general rule but an exception, best
characterized by the peculiar circumstances in Tijam vs. Sibonghanoy. In Sibonghanoy, the party
invoking lack of jurisdiction did so only after fifteen years and at a stage when the proceedings had
already been elevated to the CA. Sibonghanoy is an exceptional case because of the presence of
laches, which was defined therein as failure or neglect for an unreasonable and unexplained length
of time to do that which, by exercising due diligence, could or should have been done earlier; it is the
negligence or omission to assert a right within a reasonable time, warranting a presumption that the
party entitled to assert has abandoned it or declined to assert it.32
And in the more recent Regalado v. Go,33 the Court again emphasized that laches should be clearly
present for the Sibonghanoy doctrine to be applicable, thus:
Laches is defined as the "failure or neglect for an unreasonable and unexplained length of time, to
do that which, by exercising due diligence, could or should have been done earlier, it is negligence
or omission to assert a right within a reasonable length of time, warranting a presumption that the
party entitled to assert it either has abandoned it or declined to assert it."
The ruling in People v. Regalario that was based on the landmark doctrine enunciated in Tijam v.
Sibonghanoy on the matter of jurisdiction by estoppel is the exception rather than the
rule. Estoppel by laches may be invoked to bar the issue of lack of jurisdiction only in cases in which
the factual milieu is analogous to that in the cited case. In such controversies, laches should have
been clearly present; that is, lack of jurisdiction must have been raised so belatedly as to warrant the
presumption that the party entitled to assert it had abandoned or declined to assert it.
In Sibonghanoy, the defense of lack of jurisdiction was raised for the first time in a motion to dismiss
filed by the Surety almost 15 years after the questioned ruling had been rendered. At several stages
of the proceedings, in the court a quo as well as in the Court of Appeals, the Surety invoked the
jurisdiction of the said courts to obtain affirmative relief and submitted its case for final adjudication
on the merits. It was only when the adverse decision was rendered by the Court of Appeals that it
finally woke up to raise the question of jurisdiction.
Clearly, the factual settings attendant in Sibonghanoy are not present in the case at bar. Petitioner
Atty. Regalado, after the receipt of the Court of Appeals resolution finding her guilty of contempt,
promptly filed a Motion for Reconsideration assailing the said court’s jurisdiction based on
procedural infirmity in initiating the action. Her compliance with the appellate court’s directive to
show cause why she should not be cited for contempt and filing a single piece of pleading to that
effect could not be considered as an active participation in the judicial proceedings so as to take the
case within the milieu of Sibonghanoy. Rather, it is the natural fear to disobey the mandate of the
court that could lead to dire consequences that impelled her to comply.34
The Court, thus, wavered on when to apply the exceptional circumstance in Sibonghanoy and on
when to apply the general rule enunciated as early as in De La Santa and expounded at length in
Calimlim. The general rule should, however, be, as it has always been, that the issue of jurisdiction
may be raised at any stage of the proceedings, even on appeal, and is not lost by waiver or by
estoppel. Estoppel by laches, to bar a litigant from asserting the court’s absence or lack of
jurisdiction, only supervenes in exceptional cases similar to the factual milieu of Tijam v.
Sibonghanoy. Indeed, the fact that a person attempts to invoke unauthorized jurisdiction of a court
does not estop him from thereafter challenging its jurisdiction over the subject matter, since such
jurisdiction must arise by law and not by mere consent of the parties. This is especially true where
the person seeking to invoke unauthorized jurisdiction of the court does not thereby secure any
advantage or the adverse party does not suffer any harm.35
Applying the said doctrine to the instant case, the petitioner is in no way estopped by laches in
assailing the jurisdiction of the RTC, considering that he raised the lack thereof in his appeal before
the appellate court. At that time, no considerable period had yet elapsed for laches to attach. True,
delay alone, though unreasonable, will not sustain the defense of "estoppel by laches" unless it
further appears that the party, knowing his rights, has not sought to enforce them until the condition
of the party pleading laches has in good faith become so changed that he cannot be restored to his
former state, if the rights be then enforced, due to loss of evidence, change of title, intervention of
equities, and other causes.36 In applying the principle of estoppel by laches in the exceptional case
of Sibonghanoy, the Court therein considered the patent and revolting inequity and unfairness of
having the judgment creditors go up their Calvary once more after more or less 15 years.37 The
same, however, does not obtain in the instant case.
We note at this point that estoppel, being in the nature of a forfeiture, is not favored by law. It is to be
applied rarely—only from necessity, and only in extraordinary circumstances. The doctrine must be
applied with great care and the equity must be strong in its favor.38 When misapplied, the doctrine of
estoppel may be a most effective weapon for the accomplishment of injustice.39 Moreover, a
judgment rendered without jurisdiction over the subject matter is void.40 Hence, the Revised Rules of
Court provides for remedies in attacking judgments rendered by courts or tribunals that have no
jurisdiction over the concerned cases. No laches will even attach when the judgment is null and void
for want of jurisdiction.41 As we have stated in Heirs of Julian Dela Cruz and Leonora Talaro v. Heirs
of Alberto Cruz,42
Indeed, the jurisdiction of the court or tribunal is not affected by the defenses or theories set up by
the defendant or respondent in his answer or motion to dismiss. Jurisdiction should be determined
by considering not only the status or the relationship of the parties but also the nature of the issues
or questions that is the subject of the controversy. x x x x The proceedings before a court or tribunal
without jurisdiction, including its decision, are null and void, hence, susceptible to direct and
collateral attacks.43
With the above considerations, we find it unnecessary to resolve the other issues raised in the
petition.
WHEREFORE, premises considered, the petition for review on certiorari is GRANTED. Criminal
Case No. 2235-M-94 is hereby DISMISSED without prejudice.
SO ORDERED.
DECISION
PARDO, J.:
The case is a petition for certiorari1 assailing the jurisdiction of the Ombudsman and the
Sandiganbayan to take cognizance of two criminal cases2 against petitioner and his wife Liwayway
S. Tan, contending that he is not a public officer within the jurisdiction of the Sandiganbayan.3
On September 16, 1992, the Special Prosecutor, Office of the Ombudsman, with the approval of the
Ombudsman, filed with the Sandiganbayan two informations against petitioner and Liwayway S. Tan
charging them with estafa through falsification of official documents (Criminal Case No. 18022) and
frustrated estafa through falsification of mercantile documents (Criminal Case No. 19268), as
follows:
"CRIMINAL CASE NO. 18022
"That on or about the 15th day of March, 1989 and for sometime prior or subsequent thereto, in the
Municipality of Mandaluyong, Metro Manila, and within the jurisdiction of this Honorable Court, the
above-named accused, FELICITO S. MACALINO, being then the Assistant Manager of the Treasury
Division and the Head of the Loans Administration & Insurance Section of the Philippine National
Construction Corporation (PNCC), a government-controlled corporation with offices at EDSA corner
Reliance St., Mandaluyong, and hence, a public officer, while in the performance of his official
functions, taking advantage of his position, committing the offense in relation to his office and
conspiring and confederating with his spouse LIWAYWAY S. TAN, being then the owner of Wacker
Marketing, did then and there willfully, unlawfully, feloniously and by means of deceit defraud the
Philippine National Construction Corporation in the following manner: in preparing the application
with the Philippine National Bank, Buendia Branch for the issuance of a demand draft in the amount
of NINE HUNDRED EIGHTY THREE THOUSAND SIX HUNDRED EIGHTY-TWO & 11/100 PESOS
(P983,682.11), Philippine Currency, in favor of Bankers Trust Company, accused FELICITO
S. MACALINO superimposed the name "Wacker Marketing" as payee to make it appear that the
demand draft was payable to it, when in truth and in fact and as the accused very well knew, it was
the Bankers Trust Company which was the real payee as indicated in Check Voucher No. 3-800-89
and PNB Check No. B236746 supporting said application for demand draft; subsequently accused
FELICITO S. MACALINO likewise inserted into the letter of PNCC to PNB Buendia Branch the
words "payable to Wacker Marketing" to make it appear that the demand drafts to be picked up by
the designated messenger were payable to Wacker Marketing when in truth and in fact the real
payee was Bankers Trust Company; and as a result of such acts of falsification, PNB Buendia
issued 19 demand drafts for P50,000.00 each and another demand draft for P33,682.11, all, payable
to Wacker Marketing, which were subsequently delivered to accused Felicitor S. Macalino and which
accused LIWAYWAY S. TAN thereafter exchanged with PNB Balanga Branch for 19 checks
at P50,000.00 each and another for P33,682.11 and all of which she later deposited into Account
No. 0042-0282-6 of Wacker Marketing at Philtrust Cubao, thereby causing pecuniary damage and
prejudice to Philippine National Construction Corporation in the amount of P983,682.11.
"CONTRARY TO LAW.
"That on or about the 4th day of April, 1990, and subsequently thereafter, in the Municipality of
Mandaluyong, Metro Manila, and within the jurisdiction of this Honorable Court, the above-named
accused, FELICITO S. MACALINO, being then the Assistant Manager of the Treasury Division and
the Head of the Loans Administration and Insurance Section of the Philippine National Construction
Corporation, a government-controlled corporation with offices at EDSA corner Reliance St.,
Mandaluyong, Metro Manila, and hence, a public officer, while in the performance of his official
functions, taking advantage of his position, committing the offense in relation to his office, and
conspiring and confederating with his spouse LIWAYWAY S. TAN, being then the owner of Wacker
Marketing, did then and there willfully, unlawfully, feloniously and by means of deceit defraud the
Philippine National Construction Corporation in the following manner: after receiving Check Voucher
No. 04-422-90 covering the partial payment by PNCC of the sinking fund to International Corporate
Bank (Interbank) as well as Check No. 552312 for TWO MILLION TWO HUNDRED FIFTY
THOUSAND PESOS (P2,250,000.00), Philippine Currency, payable to Interbank for the purpose,
accused FELICITO S. MACALINO falsified PNB Check No. 552312 by altering the payee indicated
therein to make it appear that the aforesaid check was payable to Wacker Marketing instead of
Interbank and further falsified the schedule of check disbursements sent to PNB Buendia by making
it appear therein that the payee of Check No. 552312 was Wacker Marketing when in truth and in
fact and as the accused very well knew, it was Interbank which was the real payee; accused
LIWAYWAY S. TAN thereafter deposited Check No. 552312 into Account No. 0042-0282-6 of
Wacker Marketing at Philtrust Cubao and Wacker Marketing subsequently issued Philtrust Check
No. 148039 for P100,000.00 in favor of accused FELICITO S. MACALINO; which acts of falsification
performed by the accused would have defrauded the Philippine National Construction Corporation
of P2,250,000.00 had not PNB Buendia ordered the dishonor of Check No. 552312 after noting the
alteration/erasures thereon, thereby failing to produce the felony by reason of causes independent of
the will of the accused.
"CONTRARY TO LAW.
Upon arraignment on November 9, 1992, petitioner pleaded not guilty to the charges. Hence, trial
proceeded.6
However, during the initial presentation of evidence for the defense, petitioner moved for leave to file
a motion to dismiss on the ground that the Sandiganbayan has no jurisdiction over him since he is
not a public officer because the Philippine National Construction Corporation (PNCC), formerly the
Construction and Development Corporation of the Philippines (CDCP), is not a government-owned
or controlled corporation with original charter.7 The People of the Philippines opposed the motion.8
The Issue
The sole issue raised is whether petitioner, an employee of the PNCC, is a public officer within the
coverage of R. A. No. 3019, as amended.
Petitioner contends that an employee of the PNCC is not a public officer as defined under Republic
Act No. 3019, as follows:
"(b) Public officer includes elective and appointive officials and employees, permanent or temporary,
whether in the unclassified or classified or exempted service receiving compensation, even nominal,
from the government as defined in the preceding paragraph."
We agree.
To resolve the issue, we resort to the 1987 Constitution. Article XI, on the Accountability of Public
Officers, provides:
"Section 12. The Ombudsman and his deputies, as protectors of the people, shall act promptly on
complaints filed in any form or manner against public officials or employees of the Government, or
any subdivision, agency or instrumentality thereof, including government-owned or controlled
corporations x x x."
"Section 13. The Office of the Ombudsman shall have the following powers, functions and duties:
"1. Investigate on its own, or on complaint by any person, any act or omission of any public
official oremployee, office or agency, when such act or omission appears to be illegal, unjust,
improper and inefficient. x x x
"2. Direct, upon complaint or at its instance, any public official or employee of the
government, or any subdivision, agency or instrumentality thereof, as well as of any
government-owned or controlled corporations with original charters, to perform and expedite
any act or duty required by law, or to stop, prevent, and correct any abuse or impropriety in
the performance of duties." (underscoring supplied)
"The civil service embraces all branches, subdivisions, instrumentalities, and agencies of the
Government, including government-owned and controlled corporations with original charters."
(underscoring supplied)
"Section 15. Powers, Functions and Duties -The Office of the Ombudsman shall have the following
powers, functions and duties:
"1. Investigate and prosecute on its own or on complaint by any person, any act or omission of any
public officer or employee, office or agency, when such act or omission appears to be illegal, unjust,
improper or inefficient. x x x.
"2. Direct, upon complaint or at its own instance, any officer or employee of the Government, or of
any subdivision, agency or instrumentality thereof, as well as any government-owned or controlled
corporations with originalcharters, to perform and expedite any act or duty required by law, or to
stop, prevent, and correct any abuse or impropriety in the performance of duties."
Inasmuch as the PNCC has no original charter as it was incorporated under the general law on
corporations, it follows inevitably that petitioner is not a public officer within the coverage of R. A. No.
3019, as amended. Thus, the Sandiganbayan has no jurisdiction over him. The only instance when
the Sandiganbayan has jurisdiction over a private individual is when the complaint charges him
either as a co-principal, accomplice or accessory of a public officer who has been charged with a
crime within the jurisdiction of Sandiganbayan.11
The cases12 cited by respondent People of the Philippines are inapplicable because they were
decided under the provisions of the 1973 Constitution which included as public officers, officials and
employees of corporations owned and controlled by the government though organized and existing
under the general corporation law. The 1987 Constitution excluded such corporations.
1âwphi1
The crimes charged against petitioner were committed in 1989 and 1990.13 The criminal actions
were instituted in 1992. It is well-settled that "the jurisdiction of a court to try a criminal case is
determined by the law in force at the institution of the action."14
The Fallo
IN VIEW WHEREOF, the Court GRANTS the petition. The Court SETS ASIDE the order dated July
29, 1999 of the Sandiganbayan in Criminal Cases Nos. 18022 and 19268 and ORDERS the
DISMISSAL of the two (2) cases against petitioner and his wife.
No costs.
SO ORDERED.
MALCOLM, J.:
The question to be decided on this appeal is whether that portion of Act No. 3107 which provides,
that justices of the peace and auxiliary justices of the peace shall be appointed to serve until they
have reached the age of sixty- five years, should be given retroactive or prospective effect.
Vicente Segovia was appointed justice of the peace of Dumanjug, Cebu, on January 21, 1907. He
continuously occupied this position until having passed sixty-five mile- stones, he was ordered by the
Secretary of Justice on July 1, 1924, to vacate the office. Since that date, Pedro Noel, the auxiliary
justice of the peace has acted as justice of the peace for the municipality of Dumanjug.
Mr. Segovia being desirous of avoiding a public scandal and of opposing physical resistance to the
occupancy of the office of justice of the peace by the auxiliary justice of the peace, instituted friendly
quo warranto proceedings in the Court of First Instance of Cebu to inquire into the right of Pedro
Noel to occupy the office of justice of the peace, to oust the latter therefrom, and to procure
reinstatement as justice of the peace of Dumanjug. To this complaint, Pedro Noel interposed a
demurrer on the ground that it did not allege facts sufficient to constitute a cause of action, because
Act No. 3107 was constitutional and because Mr. Segovia being sixty-five years old had
automatically ceased to be justice of the peace. On the issue thus framed and on stipulated facts,
judgment was rendered by Honorable Adolph Wislizenus, Judge of First Instance, overruling the
demurrer, and in favor of petitioner and against respondent.
Proceeding by way of elimination so as to resolve the case into its simplest factors, it will first be
noted that the petitioner abandons the untenable position, assumed by him in one portion of his
complaint, to the effect that section 1 of Act No. 3107 is unconstitutional in that it impairs the
contractual right of the petitioner to an office. It is a fundamental principle that a public office cannot
be regarded as the property of the incumbent, and that a public office is not a contract.
It will next be noted that, while the respondent as appellant assigns three errors in this court, the first
two relating to preliminary matters are ultimately renounced by him in order that there may be an
authoritative decision on the main issue. The third error specified and argued with ability by the
provincial fiscal of Cebu, is that the trial judge erred in declaring that the limitation regarding the age
of justices of the peace provided by section 1 of Act No. 3107 is not applicable to justices of the
peace and auxiliary justices of the peace appointed and acting before said law went into effect.
Coming now to the law, we find on investigation the original provision pertinent to the appointment
and term of office of justices of the peace, in section 67 of Act No. 136, wherein it was provided that
justices of the peace shall hold office during the pleasure of the Commission. Act No. 1450, in force
when Vicente Segovia was originally appointed justice of the peace, amended section 67 of the
Judiciary Law by making the term of office of justices and auxiliary justices of the peace two years
from the first Monday in January nearest the date of appointment. Shortly after Segovia's
appointment, however, the law was again amended by Act No. 1627 by providing that "all justices of
the peace and auxiliary justices of the peace shall hold office during good behavior and those now in
office shall so continue." Later amended by Acts Nos. 2041 and 2617, the law was ultimately
codified in sections 203 and 206 of the Administrative Code.
Codal section 203 in its first paragraph provides that "one justice of the peace and one auxiliary
justice of the peace shall be appointed by the Governor-General for the City of Manila, the City of
Baguio, and for each municipality, township, and municipal district in the Philippine Islands, and if
the public interests shall so require, for any other minor political division or unorganized territory in
said Islands." It was this section which section 1 of Act No. 3107 amended by adding at the end
thereof the following proviso: "Provided, That justices and auxiliary justices of the peace shall be
appointed to serve until they have reached the age of sixty-five years." But section 206 of the
Administrative Code entitled "Tenure of office," and reading "a justice of the peace having the
requisite legal qualifications shall hold office during good behavior unless his office be lawfully
abolished or merged in the jurisdiction of some other justice," was left unchanged by Act No. 3107.
A sound canon of statutory construction is that a statute operates prospectively only and never
retroactively, unless the legislative intent to the contrary is made manifest either by the express
terms of the statute or by necessary implication. Following the lead of the United States Supreme
Court and putting the rule more strongly, a statute ought not to receive a construction making it act
retroactively, unless the words used are so clear, strong, and imperative that no other meaning can
be annexed to them, or unless the intention of the legislature cannot be otherwise satisfied. No court
will hold a statute to be retroactive when the legislature has not said so. As our Civil Code has it in
article 3, "Law shall not have a retroactive effect unless therein otherwise provided." (Farrel vs.
Pingree [1888], 5 Utah, 443; 16 Pac., 843; Greer vs. City of Asheville [1894], 114 N.C., 495; United
States Fidelity and Guaranty Co. vs. Struthers Wells Co. [1907], 209 U.S., 306; Montilla vs.
Agustinian Corporation [1913], 24 Phil., 220; In re will of Riosa [1918], 39 Phil., 23.)
The same rule is followed by the courts with reference to public offices. A well-known New York
decision held that "though there is no vested right in an office, which may not be disturbed by
legislation, yet the incumbent has, in a sense, a right to his office. If that right is to be taken away by
statute, the terms should be clear in which the purpose is stated." (People ex rel. Ryan vs. Green
[1874], 58 N.Y., 295.) In another case, a new constitutional provision as to the advanced age which
should prevent the incumbents of certain judicial offices from retaining them was held prospective; it
did not apply to persons in office at the time of its taking effect. (People vs. Gardner, 59 Barb., 198; II
Lewis' Sutherland Statutory Construction, Chap. XVII, particularly pages 1161, 1162; Mechem on
Public Officers, sec. 389.)
The case at bar is not the same as the case of Chanco vs. Imperial ( [1916], 34 Phil., 329). In that
case, the question was as to the validity of section 7 of Act No. 2347. The law under consideration
not only provided that Judges of First Instance shall serve until they have reached the age of sixty-
five years, but it further provided "that the present judges of Courts of First Instance ... vacate their
positions on the taking effect of this Act: and the Governor-General, with the advice and consent of
the Philippine Commission, shall make new appointments of judges of Courts of First Instance ... ."
There the intention of the Legislature to vacate the office was clearly expressed. Here, it is not
expressed at all.
The language of Act No. 3107 amendatory of section 203 of the Administrative Code, gives no
indication of retroactive effect. The law signifies no purpose of operating upon existing rights. A
proviso was merely tacked on to section 203 of the Administrative Code, while leaving intact section
206 of the same Code which permits justices of the peace to hold office during good behavior. In the
absence of provisions expressly making the law applicable to justices of the peace then in office,
and in the absence of provisions impliedly indicative of such legislative intent, the courts would not
be justified in giving the law an interpretation which would legislate faithful public servants out of
office.
Answering the question with which we began our decision, we hold that the proviso added to section
203 of the Administrative Code by section 1 of Act No. 3107, providing that justices and auxiliary
justices of the peace shall be appointed to serve until they have reached the age of sixty-five years,
should be given prospective effect only, and so is not applicable to justices of the peace and
auxiliary justices of the peace appointed before Act No. 3107 went into force. Consequently, it
results that the decision of the trial court is correct in its findings of fact and law and in its disposition
of the case.