JUSTICE TERESITA J.

LEONARDO-DE CASTRO
Chairperson
2015 Bar Examinations

of receiving double compensation. Is the argument of the professor valid? Explain.

(4%)
IV.

When is a facial challenge to the constitutionality of a law on the ground of

violation of the Bill of Rights traditionally allowed? Explain your answer. (3%)

V.

BD Telecommunications, Inc. (BDTI), a Filipino-owned corporation, sold its 1,000

common shares of stock in the Philippine Telecommunications Company (PTC), a
public utility, to Australian Telecommunications (AT), another stockholder of the
PTC which also owns 1,000 common shares. A Filipino stockholder of PTC
questions the sale on the ground that it will increase the common shares of AT, a
foreign company, to more than 40% of the capital (stock) of PTC in violation of the
40% limitation of foreign ownership of a public utility. AT argues that the sale does
not violate the 60-40 ownership requirement in favor of Filipino citizens decreed in
Section II, Article XII of the 1987 Constitution because Filipinos still own 70% of
the capital of the PTC. AT points to the fact that it owns only 2,000 common voting
shares and 1,000 non-voting preferred shares while Filipino stockholders own
1,000 common shares and 6,000 preferred shares, therefore, Filipino
stockholders still own a majority of the outstanding capital stock of the
corporation, and both classes of shares have a par value of Php 20.00 per share.
Decide. (5%)

POLITICAL
I.

The Philippines and the Republic of Kroi Sha established diplomatic relations and
immediately their respective Presidents signed the following: (1) Executive
Agreement allowing the Republic of Kroi Sha to establish its embassy and
consular offices within Metro Manila; and (2) Executive Agreement allowing the
Republic of Kroi Sha to bring to the Philippines its military complement, warships,
and armaments from time to time for a period not exceeding one month for the
purpose of training exercises with the Philippine military forces and exempting
from Philippine criminal jurisdiction acts committed in the line of duty by foreign
military personnel, and from paying custom duties on all the goods brought by
said foreign forces into Philippine territory in connection with the holding of the
activities authorized under the said Executive Agreement.
Senator Maagap questioned the constitutionality of the said Executive
Agreements and demanded that the Executive Agreements be submitted to the
Senate for ratification pursuant to the Philippine Constitution. Is Senator Maagap
correct? Explain. (4%)

VI.
II.

(1) A bill was introduced in the House of Representatives in order to implement

faithfully the provisions of the United Nations Convention on the Law of the Sea
(UNCLOS) to which the Philippines is a signatory. Congressman Pat Rio Tek
questioned the constitutionality of the bill on the ground that the provisions of UN
CLOS are violative of the provisions of the Constitution defining the Philippine
internal waters and territorial sea. Do you agree or not with the said objection?
Explain. (3%)

(2) What are the limitations, if any, to the pardoning power of the President? (3%)
VII.

Senator Fleur De Lis is charged with plunder before the Sandiganbayan. After
finding the existence of probable cause, the court issues a warrant for the
Senator's arrest. The prosecution files a motion to suspend the Senator relying on
Section 5 of the Plunder Law. According to the prosecution, the suspension
should last until the termination of the case. Senator Lis vigorously opposes the
motion contending that only the Senate can discipline its members; and that to
allow his suspension by the Court would violate the principle of separation of
powers. Is Senator Lis's contention tenable? Explain. (4%)

VIII.

A law provides that the Secretaries of the Departments of Finance and Trade and
Industry, the Governor of the Central Bank, the Director General of the National
Economic Development Authority, and the Chairperson of the Philippine Overseas
Construction Board shall sit as ex-officio members of the Board of Directors
(BOD) of a government owned and controlled corporation (GOCC). The other four
(4) members shall come from the private sector. The BOD issues a resolution to
implement a new organizational structure, staffing pattern, a position classification
system, and a new set of qualification standards. After the implementation of the
Resolution, Atty. Dipasupil questioned the legality of the Resolution alleging that
the BOD has no authority to do so. The BOD claims otherwise arguing that the
doctrine of qualified political agency applies to the case. It contends that since its
agency is attached to the Department of Finance, whose head, the Secretary of

(2) Describe the following maritime regimes under UNCLOS (4%)

(a) Territorial sea
(b) Contiguous zone
(c) Exclusive economic zone
(d) Continental shelf
III.

Professor Masipag who holds a plantilla or regular item in the University of the
Philippines (UP) is appointed as an Executive Assistant in the Court of Appeals
(CA). The professor is considered only on leave of absence in UP while he reports
for work at the CA which shall pay him the salary of the Executive Assistant. The
appointment to the CA position was questioned, but Professor Masipag countered
that he will not collect the salary for both positions; hence, he can not be accused

(1) Distinguish the President's authority to declare a state of rebellion from the
authority to proclaim a state of national emergency. (2%)

Finance, is an alter ego of the President, the BOD's acts were also the acts of the
President. Is the invocation of the doctrine by the BOD proper? Explain. (4%)
IX.

X.

XI.

Several senior officers of the Armed Forces of the Philippines received invitations
from the Chairperson of the Senate Committees on National Defense and
Security for them to appear as resource persons in scheduled public hearings
regarding a wide range of subjects. The invitations state that these public
hearings were triggered by the privilege speeches of the Senators that there was
massive electoral fraud during the last national elections. The invitees Brigadier
General Matapang and Lieutenant Coronel Makatuwiran, who were among those
tasked to maintain peace and order during the last election, refused to attend
because of an Executive Order banning all public officials enumerated in
paragraph 3 thereof from appearing before either house of Congress without prior
approval of the President to ensure adherence to the rule of executive privilege.
Among those included in the enumeration are "senior officials of executive
departments who, in the judgment of the department heads, are covered by
executive privilege." Several individuals and groups challenge the constitutionality
of the subject executive order because it frustrates the power of the Congress to
conduct inquiries in aid of legislation under Section 21, Article VI of the 1987
Constitution. Decide the case. (5%)
The Secretary of the Department of Environment and Natural Resources (DENR)
issued Memorandum Circular No. 123-15 prescribing the administrative
requirements for the conversion of a timber license agreement (TLA) into an
Integrated Forestry Management Agreement (IFMA). ABC Corporation, a holder of
a TLA which is about to expire, claims that the conditions for conversion imposed
by the said circular are unreasonable and arbitrary and a patent nullity because it
violates the non-impairment clause under the Bill of Rights of the 1987
Constitution. ABC Corporation goes to court seeking the nullification of the subject
circular. The DENR moves to dismiss the case on the ground that ABC
Corporation has failed to exhaust administrative remedies which is fatal to its
cause of action. If you were the judge, will you grant the motion? Explain. (4%)

Pangarap would be classified as belonging to either the first or second district,

depending on their place of residence. The constituents of each district would
elect their own representative to Congress as well as eight (8) members of the
Sangguniang Panglungsod. R.A. No. 1234 apportioned the City's barangays. The
COMELEC thereafter promulgated Resolution No. 2170 implementing R.A. No.
1234.
Piolo Cruz assails the COMELEC Resolution as unconstitutional. According to
him, R.A. No. 1234 cannot be implemented without conducting a plebiscite
because the apportionment under the law falls within the meaning of creation,
division, merger, abolition or substantial alteration of boundaries of cities under
Section 10, Article X of the 1987 Constitution. Is the claim correct? Explain. (4%)
XIV.

Congress enacted R.A. No. 14344 creating the City of Masuwerte which took
effect on September 25, 2014. Section 23 of the law specifically exempts the City
of Masuwerte from the payment of legal fees in the cases that it would file and/or
prosecute in the courts of law. In two (2) cases that it filed, the City of Masuwerte
was assessed legal fees by the clerk of court pursuant to Rule 141 (Legal Fees)
of the Rules of Court. The City of Masuwerte questions the assessment claiming
that it is exempt from paying legal fees under Section 23 of its charter. Is the claim
of exemption tenable? Explain. (4%)

XV.

The President appointed Dexter I. Ty as Chairperson of the COMELEC on June

14, 2011 for a term of seven (7) years pursuant to the 1987 Constitution. His term
of office started on June 2, 2011 to end on June 2, 2018. Subsequently, the
President appointed Ms. Marikit as the third member of the COMELEC for a term
of seven (7) years starting June 2, 2014 until June 2, 2021. On June 2, 2015,
Chairperson Ty retired optionally after having served the government for thirty (30)
years. The President then appointed Commissioner Marikit as COMELEC
Chairperson. The Commission on Appointments confirmed her appointment. The
appointment papers expressly indicate that Marikit will serve as COMELEC
Chairperson "until the expiration of the original term of her office as COMELEC
Commissioner or on June 2, 2021." Matalino, a tax payer, files a petition for
certiorari before the Supreme Court asserting that the appointment of Marikit as
COMELEC Chairperson is unconstitutional for the following reasons: (1) The
appointment of Marikit as COMELEC Chairperson constituted a reappointment
which is proscribed by Section 1 (2), Article IX of the 1987 Constitution; and (2)
the term of office expressly stated in the appointment papers of Marikit likewise
contravenes the aforementioned constitutional provision. Will the constitutional
challenge succeed? Explain. (4%)

XVI.

(1) Gandang Bai filed her certificate of candidacy (COC) for municipal mayor
stating that she is eligible to run for the said position. Pasyo Maagap, who also
filed his COC for the same position, filed a petition to deny due course or cancel
Bai's COC under Section 78 of the Omnibus Election Code for material
misrepresentation as before Bai filed her COC, she had already been convicted of
a crime involving moral turpitude. Hence, she is disqualified perpetually from
holding any public office or from being elected to any public office. Before the

(1) What is the concept of expanded judicial review under the 1987 Constitution?
(3%)
(2) Differentiate the rule-making power or the power of the Supreme Court to
promulgate rules under Section 5, Article VIII of the 1987 Constitution and judicial
legislation. (2%)

XII.

Discuss the evolution of the principle of jus sanguinis as basis of Filipino

citizenship under the 1935, 1973, and 1987 Constitutions. (3%)

XIII.

On August 15, 2015, Congresswoman Dina Tatalo filed and sponsored House Bill
No. 5432, entitled "An Act Providing for the Apportionment of the Lone District of
the City of Pangarap." The bill eventually became a law, R.A. No. 1234. It
mandated that the lone legislative district of the City of Pangarap would now
consist of two (2) districts. For the 2016 elections, the voters of the City of

election, the COMELEC cancelled Bai' s COC but her motion for reconsideration
(MR) remained pending even after the election. Bai garnered the highest number
of votes followed by Pasyo Maagap, who took his oath as Acting Mayor.
Thereafter, the COMELEC denied Bai's MR and declared her disqualified for
running for Mayor. P. Maagap asked the Department of Interior and Local
Government Secretary to be allowed to take his oath as permanent municipal
mayor. This request was opposed by Vice Mayor Umaasa, invoking the rule on
succession to the permanent vacancy in the Mayor's office. Who between Pasyo
Maagap and Vice Mayor Umaasa has the right to occupy the position of Mayor?
Explain your answer. (5%)

adverts to the fact that Hades did not offer any protest when the police officers
asked him if they could look inside the vehicle. Thus, any evidence obtained in the
course thereof is admissible in evidence.
Whose claim is correct? Explain. (5%)
XIX.

Pursuant to its mandate to manage the orderly sale, disposition and privatization
of the National Power Corporation's (NPC) generation assets, real estate and
other disposable assets, the Power Sector Assets and Liabilities Management
(PSALM) started the bidding process for the privatization of Angat Hydro Electric
Power Plant ( AHEPP). After evaluation of the bids, K-Pop Energy Corporation, a
South Korean Company, was the highest bidder. Consequently, a notice of award
was issued to K-Pop. The Citizens' Party questioned the sale arguing that it
violates the constitutional provisions on the appropriation and utilization of a
natural resource which should be limited to Filipino citizens and corporations
which are at least 60% Filipino-owned. The PSALM countered that only the
hydroelectric facility is being sold and not the Angat Dam; and that the utilization
of water by a hydroelectric power plant does not constitute appropriation of water
from its natural source of water that enters the intake gate of the power plant
which is an artificial structure. Whose claim is correct? Explain. (4%)

XX.

Typhoon Bangis devastated the Province of Sinagtala. Roads and bridges were
destroyed which impeded the entry of vehicles into the area. This caused food
shortage resulting in massive looting of grocery stores and malls. There is power
outage also in the area. For these reasons, the governor of the province declares
a state of emergency in their province through Proclamation No. 1. He also
invoked Section 465 of the Local Government Code of 1991 (R.A. No. 7160)
which vests on the provincial governor the power to carryout emergency
measures during man-made and natural disasters and calamities, and to call upon
the appropriate national law enforcement agencies to suppress disorder and
lawless violence. In the same proclamation, the governor called upon the
members of the Philippine National Police, with the assistance of the Armed
Forces of the Philippines, to set up checkpoints and chokepoints, conduct general
searches and seizures including arrests, and other actions necessary to ensure
public safety. Was the action of the provincial governor proper? Explain. (4%)

XXI.

The Partido ng Mapagkakatiwalaang Pilipino (PMP) is a major political party

which has participated in every election since the enactment of the 1987
Constitution. It has fielded candidates mostly for legislative district elections. In
fact, a number of its members were elected, and are actually serving, in the
House of Representatives. In the coming 2016 elections, the PMP leadership
intends to join the party-list system.

(2) How do you differentiate the petition filed under Section 68 from the petition
filed under Section 78, both of the Omnibus Election Code? (3%)
XVII.

The Gay, Bisexual and Transgender Youth Association (GBTYA), an organization

of gay, bisexual, and transgender persons, filed for accreditation with the
COMELEC to join the forthcoming party-list elections. The COMELEC denied the
application for accreditation on the ground that GBTY A espouses immorality
which offends religious dogmas. GBTY A challenges the denial of its application
based on moral grounds because it violates its right to equal protection of the law.
(1) What are the three (3) levels of test that are applied in equal
protection cases? Explain. (3%)
(2) Which of the three (3) levels of test should be applied to the present
case? Explain. (3%)

XVIII.

Around 12:00 midnight, a team of police officers was on routine patrol in Barangay
Makatarungan when it noticed an open delivery van neatly covered with banana
leaves. Believing that the van was loaded with contraband, the team leader
flagged down the vehicle which was driven by Hades. He inquired from Hades
what was loaded on the van. Hades just gave the police officer a blank stare and
started to perspire profusely. The police officers then told Hades that they will look
inside the vehicle. Hades did not make any reply. The police officers then lifted the
banana leaves and saw several boxes. They opened the boxes and discovered
several kilos of shabu inside. Hades was charged with illegal possession of illegal
drugs. After due proceedings, he was convicted by the trial court. On appeal, the
Court of Appeals affirmed his conviction.
In his final bid for exoneration, Hades went to the Supreme Court claiming that his
constitutional right against unreasonable searches and seizures was violated
when the police officers searched his vehicle without a warrant; that the shabu
confiscated from him is thus inadmissible in evidence; and that there being no
evidence against him, he is entitled to an acquittal.
For its part, the People of the Philippines maintains that the case of Hades
involved a consented warrantless search which is legally recognized. The People

Can PMP join the party-list system without violating the Constitution and Republic
Act (R.A.) No. 7941? (4%)
XXII.

The President appoints Emilio Melchor as Chairperson of the Civil Service

Commission. Upon confirmation of Melchor's appointment, the President issues

an executive order including him as Ex-Officio member of the Board of Trustees of

the Government Service Insurance System (GSIS), Employees Compensation
Commission (ECC), and the Board of Directors of the Philippine Health Insurance
Corporation (PHILHEALTH). Allegedly, this is based on the Administrative Code of
1997 (E.O. No. 292), particularly Section 14, Chapter 3, Title I-A, Book V. This
provision reads: "The chairman of the CSC shall be a member of the Board of
Directors of other governing bodies of government entities whose functions affect
the career development, employment, status, rights, privileges, and welfare of
government officials and employees... " A taxpayer questions the designation of
Melchor as ex-officio member of the said corporations before the Supreme Court
based on two (2) grounds, to wit: (1) it violates the constitutional prohibition on
members of the Constitutional Commissions to hold any other office or
employment during his tenure; and (2) it impairs the independence of the CSC.
Will the petition prosper? Explain. (4%)
---ooo0ooo---

JUSTICE TERESITA J. LEONARDO-DE CASTRO

Chairperson
2015 Bar Examinations
LABOR
I
A. Rocket Corporation is a domestic corporation registered with the SEC, with
30% of its authorized capital stock owned by foreigners and 70% of its authorized
capital stock owned by Filipinos. Is Rocket Corporation allowed to engage in the
recruitment and placement of workers, locally and overseas? Briefly state the
basis for your answer. (2%)
B. When does the recruitment of workers become an act of economic sabotage?
(2%)
II
LKG Garments Inc. makes baby clothes for export. As part of its measures to meet its
orders, LKG requires its employees to work beyond eight (8) hours everyday, from Monday
to Saturday. It pays its employees an additional 35% of their regular hourly wage for work
rendered in excess of eight (8) hours per day. Because of additional orders, LKG now
requires two (2) shifts of workers with both shifts working beyond eight (8) hours but only
up to a maximum of four (4) hours. Carding is an employee who used to render up to six
(6) hours of overtime work before the change in schedule. He complains that the change
adversely affected him because now he can only earn up to a maximum of four (4) hours'
worth of overtime pay. Does Carding have a cause of action against the company? (4%)
III
Benito is the owner of an eponymous clothing brand that is a top seller. He employs a
number of male and female models who wear Benito's clothes in promotional shoots and
videos. His deal with the models is that Benito will pay them with 3 sets of free clothes per
week. Is this arrangement allowed? (2%)
IV
Far East Bank (FEB) is one of the leading banks in the country. Its compensation and
bonus packages are top of the industry. For the last 6 years, FEB had been providing the
following bonuses across-the-board to all its employees:
(a) 13th month pay;
(b) 14th to 18th month pay;

(c) Christmas basket worth P6,000;

(a) Is there an employer-employee relationship between Nico and Ador? (4%)

(d) Gift check worth P4,000; and

(b) Will Nico need to register Ador with the Social Security System (SSS)? (2%)

(e) Productivity-based incentive ranging from a 20% to 40% increase in gross

monthly salary for all employees who would receive an evaluation of "Excellent"
for 3 straight quarters in the same year.
Because of its poor performance over-all, FEB decided to cut back on the bonuses this
year and limited itself to the following:
VII

(a) 13th month pay;

(b) 14th month pay;
(c) Christmas basket worth P4,000; and
(d) Gift check worth P2,000
Katrina, an employee of FEB, who had gotten a rating of "Excellent" for the last 3 quarters
was looking forward to the bonuses plus the productivity incentive bonus. After learning
that FEB had modified the bonus scheme, she objected. Is Katrina's objection justified?
Explain. (3%)
V
Soledad, a widowed school teacher, takes under her wing one of her students, Kiko, 13
years old, who was abandoned by his parents and has to do odd jobs in order to study.
She allows Kiko to live in her house, provides him with clean clothes, food, and a daily
allowance of 200 pesos. In exchange, Kiko does routine housework, consisting of cleaning
the house and doing errands for Soledad. One day, a representative of the DOLE and the
DSWD came to Soledad's house and charged her with violating the law that prohibits work
by minors. Soledad objects and offers as a defense that she was not requiring Kiko to work
as the chores were not hazardous. Further, she did not give him chores regularly but only
intermittently as the need may arise. Is Soledad's defense meritorious? (4%)

Don Don is hired as a contractual employee of CALLHELP, a call center. His contract is
expressly for a term of 4 months. Don Don is hired for 3 straight contracts of 4 months
each but at 2-week intervals between contracts. After the third contract ended, Don Don is
told that he will no longer be given another contract because of "poor performance." Don
Don files a suit for "regularization" and for illegal dismissal, claiming that he is a regular
employee of CALLHELP and that he was dismissed without cause. You are the Labor
Arbiter. How would you decide the case? (4%)
VIII
Star Crafts is a lantern maker based in Pampanga. It supplies Christmas lanterns to stores
in Luzon, Metro Manila, and parts of Visayas, with the months of August to November
being the busiest months. Its factory employs a workforce of 2,000 workers who make
different lanterns daily for the whole year. Because of increased demand, Star Crafts
entered into a contractual arrangement with People Plus, a service contractor, to supply the
former with I 00 workers for only 4 months, August to November, at a rate different from
what they pay their regular employees. The contract with People Plus stipulates that all
equipment and raw materials will be supplied by Star Crafts with the express condition that
the workers cannot take any of the designs home and must complete their tasks within the
premises of Star Crafts.
Is there an employer-employee relationship between Star Crafts and the 100 workers from
People Plus? Explain. (4%)

VI

IX

Ador is a student working on his master's degree in horticulture. To make ends meet, he
takes on jobs to come up with flower arrangements for friends. His neighbor, Nico, is about
to get married to Lucia and needs a floral arranger. Ador offers his services and Nico
agrees. They shake hands on it, agreeing that Nico will pay Ador P20,000.00 for his
services but that Ador will take care of everything. As Ador sets about to decorate the
venue, Nico changes all of Ador's plans and ends up designing the arrangements himself
with Ador simply executing Nico's instructions.

Din Din is a single mother with one child. She is employed as a sales executive at a
prominent supermarket. She and her child live in Quezon City and her residence and
workplace are a 15-minute drive apart. One day, Din Din is informed by her boss that she is
being promoted to a managerial position but she is now being transferred to the Visayas.
Din Din does not want to uproot her family and refuses the offer. Her boss is so humiliated
by Din Din's refusal of the offer that she gives Din Din successive unsatisfactory
evaluations that result in Din Din being removed from the supermarket.
Din Din approaches you, as counsel, for legal advice. What would you advise her? (4%)

X
Karina Santos is a famous news anchor appearing nightly in the country's most watched
newscast. She is surprised, after one newscast, to receive a notice of hearing before the
station's Vice-President for Human Resources and calls the VP immediately to ask what
was wrong. Karina is told over the phone that one of her crew filed a complaint against her
for verbal abuse and that management is duty-bound to investigate and give her a chance
to air her side. Karina objects and denies that she had ever verbally assaulted her crew.
The VP then informed her that pending the investigation she will be placed on a 30-day
preventive suspension without pay and that she will not be allowed to appear in the
newscast during this time.

Luis, a PNP officer, was off duty and resting at home when he heard a scuffle outside his
house. He saw two of his neighbors fighting and he rushed out to pacify them. One of the
neighbors shot Luis by mistake, which resulted in Luis's death. Marian, Luis's widow, filed a
claim with the GSIS seeking death benefits. The GSIS denied the claim on the ground that
the death of Luis was not service-related as he was off duty when the incident happened.
Is the GSIS correct? (3%)

Is the preventive suspension of Karina valid? Discuss the reasons for your answer. (4%)
XI
Rico has a temper and, in his work as Division Manager of Matatag Insurance, frequently
loses his temper with his staff. One day, he physically assaults his staff member by
slapping him. The staff member sues him for physical injuries. Matatag Insurance decides
to terminate Rico, after notice and hearing, on the ground of loss of trust and confidence.
Rico claims that he is entitled to the presumption of innocence because he has not yet
been convicted. Comment on Matatag's action in relation to Rico's argument. (4%)
XII
Blank Garments, Inc. (BLANK), a clothing manufacturer, employs more than 200
employees in its manufacturing business. Because of its high overhead, BLANK decided to
sell its manufacturing business to Bleach Garments, Inc. (BLEACH) lock, stock and barrel
which included goodwill, equipment, and personnel. After taking on BLANK's business,
BLEACH reduces the workforce by not hiring half the workers specifically the ones with
seniority. BLANK and BLEACH are still discerned to be sister companies with identical
incorporators. The laid-off employees sue both BLANK and BLEACH for unlawful
termination.
(a) How would you decide this case? (4%)
(b) What is the "successor employer" doctrine? (2%)
XIII
Luisa is an unwed mother with 3 children from different fathers. In 2004, she became a
member of the Social Security System (SSS). That same year, she suffered a miscarriage
of a baby out of wedlock from the father of her third child. She wants to claim maternity
benefits under the SSS Act. Is she entitled to claim? (3%)
XIV

XV
Victor was hired by a local manning agency as a seafarer cook on board a luxury vessel for
an eight-month cruise. While on board, Victor complained of chronic coughing, intermittent
fever, and joint pains. He was advised by the ship's doctor to take complete bed rest but
was not given any other medication. His condition persisted but the degree varied from day
to day. At the end of the cruise, Victor went home to Iloilo and there had himself examined.
The examination revealed that he had tuberculosis.
(a) Victor sued for medical reimbursement, damages and attorney's fees, claiming
that tuberculosis was a compensable illness. Do you agree with Victor? Why or
why not? (2%)
(b) Due to his prolonged illness, Victor was unable to work for more than 120
days. Will this entitle him to claim total permanent disability benefits? (2%)
XVI
The Alliance of Independent Labor Unions (AILU) is a legitimate labor federation which
represents a majority of the appropriate bargaining unit at the Lumens Brewery (LB). While
negotiations were ongoing for a renewal of the collective bargaining agreement (CBA), LB
handed down a decision in a disciplinary case that was pending which resulted in the
termination of the AILU's treasurer and two other members for cause. AILU protested the
decision, claiming that LB acted in bad faith and asked that LB reconsider. LB refused to
reconsider. AILU then walked out of the negotiation and declared a strike without a notice
of strike or a strike vote. AILU members locked in the LB management panel by barricading
the doors and possible exits (including windows and fire escapes). LB requested the DOLE
to assume jurisdiction over the dispute and to certify it for compulsory arbitration.

The Secretary of Labor declined to assume jurisdiction, finding that the dispute was not
one that involved national interest. LB then proceeds to terminate all of the members of the
bargaining agent on the ground that it was unlawful to:
(1) barricade the management panel in the building, and (2) participate in an illegal strike.
(a) Was AILU justified in declaring a strike without a strike vote and a notice of
strike? Why or why not? (3%)

George is an American who is working as a consultant for a local IT company. The

company has a union and George wants to support the union. How far can George go in
terms of his support for the union? (3%)
XIX
What is the rule on the "equity of the incumbent"? (2%)
XX

(b) Was the Secretary of Labor correct in declining to assume jurisdiction over the
dispute? (2%)
(c) Was LB justified in terminating all those who were members of AILU on the two
grounds cited? (3%)
XVII
The Collective Bargaining Agreement (CBA) between Libra Films and its union, Libra Films
Employees' Union (LFEU), contains the following standard clauses:
1. Maintenance of membership;

A. XYZ Company and Mr. AB, a terminated employee who also happens to be the
President of XYZ Employees Union, agree in writing to submit Mr. AB's illegal
dismissal case to voluntary arbitration. Is this agreement a valid one? (3%)
B. XYZ Company and XYZ Employees Union (XYZEU) reach a deadlock in their
negotiation for a new collective bargaining agreement (CBA). XYZEU files a
notice of strike; XYZ Company proposes to XYZEU that the deadlock be
submitted instead to voluntary arbitration. If you are counsel for XYZEU, what
advice would you give the union as to the: (1) propriety of the request of XYZ
Company, and (2) the relative advantages/disadvantages between voluntary
arbitration and compulsory arbitration? (4%)

2. Check off for union dues and agency fees; and

3. No strike, no lock-out.
While Libra Films and LFEU are in re-negotiations for an extension of the CBA, LFEU
discovers that some of its members have resigned from the union, citing their constitutional
right to organize (which includes the right NOT to organize). LFEU demands that Libra
Films institute administrative proceedings to terminate those union members who resigned
in violation of the CBA' s maintenance of membership clause. Libra Films refuses, citing its
obligation to remain a neutral party. As a result, LFEU declares a strike and after filing a
notice of strike and taking a strike vote, goes on strike. The union claims that Libra Films
grossly violated the terms of the CBA and engaged in unfair labor practice.
(a) Are LFEU's claims correct? Explain. (4%)

XXI
Philippine News Network (PNN) engages the services of Anya, a prominent news anchor
from a rival station, National News Network (NNN). NNN objects to the transfer of Anya
claiming that she is barred from working in a competing company for a period of three
years from the expiration of her contract. Anya proceeds to sign with PNN which then asks
her to anchor their nightly newscast. NNN sues Anya and PNN before the National Labor
Relations Commission (NLRC), asking for a labor injunction. Anya and PNN object claiming
that it is a matter cognizable by a regular court and not the NLRC.
(a) Is NNN's remedy correct? Why or why not? (3%)

(b) Distinguish between a "closed shop" clause and a "maintenance of

membership" clause. (2%)

(b) What are the grounds for a labor injunction to issue? (2%)

(c) Distinguish between "union dues" and "agency fees." (2%)

(c) Distinguish the jurisdiction of a Labor Arbiter from that of the NLRC. (3%)

XVIII

XXII

Mario comes from a family of coffee bean growers. Deciding to incorporate his fledgling
coffee venture, he invites his best friend, Carlo, to join him. Carlo is hesitant because he
does not have money to invest but Mario suggests a scheme where Carlo can be the Chief
Marketing Agent of the company, earning a salary and commissions. Carlo agrees and the
venture is formed. After one year, the business is so successful that they were able to
declare dividends. Mario is so happy with Carlo's work that he assigns 100 shares of stock
to Carlo as part of the latter's bonus.
Much later on, it is discovered that Carlo had engaged in unethical conduct which caused
embarrassment to the company. Mario is forced to terminate Carlo but he does so without
giving Carlo the opportunity to explain.
Carlo filed a case against Mario and the company for illegal dismissal. Mario objected on
the ground that the Labor Arbiter had no jurisdiction over the case as it would properly be
considered as an intra-corporate controversy cognizable by the RTC. Further, Mario
claimed that because Carlo's dismissal was a corporate act, he cannot be held personally
liable.
(a) As the Labor Arbiter assigned to this case, how would you resolve the
jurisdiction question. (3%)
(b) What is the rule on personal liability of corporate officers for a corporate act
declared to be unlawful? (2%)

---ooo0ooo--JUSTICE TERESITA J. LEONARDO-DE CASTRO

Chairperson
2015 Bar Examinations
MERCANTILE
I.

A. Nadine has a checking account with Fair & Square Bank. One day, she lost her
checkbook and the finder was able to forge her signature and encash the forged
check. Will Nadine be able to recover the amount debited from her checking
account from Fair & Square Bank? Justify your answer. (3%)

ABC Bank a certificate of default (in the form prescribed under the standby letter
of credit) and ABC Bank will have to pay Y Company the defaulted amount.
Subsequently, Y Company submitted to ABC Bank a certificate of default
notwithstanding the fact that X Company was not in default. Can ABC Bank refuse
to honor the certificate of default? Explain. (3%)

B. Is a manager's check as good as cash? Why or why not? (2%)

C. When can you treat a bill of exchange as a promissory note? (3%)
II.
A. Novette entered into a contract for the purchase of certain office supplies. The
goods were shipped. While in transit, the goods were insured by Novette. Does
she have an insurable interest over the goods even before delivery of the same to
her? Explain. (2%)
B. Will an insurance policy be binding even if the premium is unpaid? What if it
were partially paid? (3%)
III.
A. Discuss the three-fold character of a bill of lading. (3%)

B. Is the Uniform Customs and Practice for Documentary Credits of the

International Chamber of Commerce applicable to commercial letters of credit
issued by a domestic bank even if not expressly mentioned in such letters of
credit? What is the basis for your answer? (3%)
VI.
A. DEF Corporation has retained surplus profits in excess of 100% of its paid-in
capital stock. However, it is unable to declare dividends, because it had entered
into a loan agreement with a certain creditor wherein the declaration of dividends
is not allowed without the consent of such creditor. If DEF Corporation cannot
obtain this consent, will it be justified in not declaring dividends to its
stockholders? Explain. (3%)
B. What is "watered stock" and what is the legal consequence of the issuance of
such stock? (3%)
VII.

B. What is a "Jason clause" in a charter party? (2%)

C. Are common carriers liable for injuries to passengers even if they have
observed ordinary diligence and care? Explain. (2%)
IV.
A. Maine Den, Inc. opened an irrevocable letter of credit with Fair Bank, in
connection with Maine Den, Inc.' s importation of spare parts for its textile mills.
The imported parts were released to Maine Den, Inc. after it executed a trust
receipt in favor of Fair Bank. When Maine Den, Inc. was unable to pay its
obligation under the trust receipt, Fair Bank sued Maine Den, Inc. for estafa under
the Trust Receipts Law. The court, however, dismissed the suit. Was the dismissal
justified? Why or why not? (3%)
B. Does the rule "res perit domino" apply in trust receipt transactions? Explain.
(2%)
V.
A. A standby letter of credit was issued by ABC Bank to secure the obligation of X
Company to Y Company. Under the standby letter of credit, if there is failure on
the part of X Company to perform its obligation, then Y Company will submit to

A. A foreign company has been exporting goods to a Philippine company for

several years now. When the Philippine company failed to pay the latest
exportation, the foreign company sued to collect in the Philippines. The Philippine
company interposed the defense that the foreign company was doing business in
the Philippines without a license; hence, could not sue before a Philippine court. Is
this defense tenable? Explain your answer. (3%)
B. Define:
1. Doctrine of apparent authority (2%)
2. Trust fund doctrine (2%)

A. Why is the Bangko Sentral ng Pilipinas considered a lender of last resort? (2%)
VIII.
Barn filed an action to enjoin SN Company's Board of Directors from selling a parcel of land
registered in the corporation's name, to compel the corporation to recognize Barn as a
stockholder with 50 shares, to allow him to inspect the corporate books, and to claim
damages against the corporation and its officers. Subsequently, the corporation and the
individual defendants moved to dismiss the complaint since the corporation's certificate of
registration was revoked by the SEC during the pendency of Barn's case on the ground of
non-compliance with reportorial requirements. The special commercial court granted the
motion and reasoned that only an action for liquidation of assets can be maintained when a
corporation has been dissolved and Barn cannot seek reliefs which in effect lead to the
continuation of the corporation's business. The court also ruled that it lost jurisdiction over
the intra-corporate controversy upon the dissolution of the corporation.

B. Distinguish a conservator from a receiver of a bank. (2%)

C. What is insider trading? (2%)
XII.
A. Raymond invested his money in securities issued by the Philippine
government, through his bank. Subsequently, the Bureau of Internal Revenue
asked his bank to disclose his investments. His bank refused the request for
disclosure on the ground that the investments are confidential under the Secrecy
of Bank Deposits Law (Republic Act No. 1405, as amended). Is the bank's refusal
justified? Defend your answer. (2%)
B. First Bank received an order of garnishment over a client's peso and dollar
deposits in First Bank. Should First Bank comply with that order? Explain. (3%)

a.) Was the court correct? (3%)

b.) Four years later, SN Company files an action against Barn to recover
corporate assets allegedly held by the latter for liquidation. Will this action
prosper? (3%)
IX.
A. Able Corporation sold securities to 21 non-qualified buyers during a 15-month
period, without registering the securities with the Securities and Exchange
Commission. Did Able Corporation violate the Securities Regulation Code?
Explain. (2%)

XIII.
A. A commercial bank wants to acquire shares in a cement manufacturing
company. Do you think it can do that? Why or why not? (2%)
B. A court found the interest charged by a bank as excessive and unconscionable
and struck down the contractual stipulation on interest. If you were the judge, what
would you impose as the applicable interest rate? State your legal basis. (2%)
C. What is the single borrower's limit? (2%)

B. Securities issued by the Philippine government are "exempt securities" and,

therefore, need not be registered with the Securities and Exchange Commission
prior to their sale or offering to the public in the Philippines. What is the rationale
behind this exemption? (2%)

A. Differentiate trademark, copyright and patent from each other. (6%)

C. Why is the Securities Regulation Code called a "truth in securities law"? (2%)

B. What is the doctrine of equivalents? (2%)

X.
Mr. and Mrs. Reyes invested their hard-earned savings in securities issued by LEAD Bank.
After discovering that the securities sold to them were not registered with the SEC in
violation of the Securities Regulation Code, the spouses Reyes filed a complaint for nullity
of contract and for recovery of a sum of money with the RTC. LEAD Bank moved to
dismiss the case on the ground that it is the SEC that has primary jurisdiction over actions
involving violations of the Securities Regulation Code. If you were the judge, how would
you rule on the motion to dismiss? (3%)
XI.

XIV.

C. In what ways would a case for infringement of trademark be different from a

case for unfair competition? (3%)
XV.
CHEN, Inc., a Taiwanese company, is a manufacturer of tires with the mark Light Year.
From 2009 to 2014, Clark Enterprises, a Philippine registered corporation, imported tires
from CHEN, Inc. under several sales contracts and sold them here in the Philippines. In
2015, CHEN, Inc. filed a trademark application with the Intellectual Property Office (IPO) for
the mark Light Year to be used for tires. The IPO issued CHEN, Inc. a certificate of
registration (COR) for said mark. Clark Enterprises sought the cancellation of the COR and

claimed it had a better right to register the mark Light Year. CHEN, Inc. asserted that it was
the owner of the mark and Clark Enterprises was a mere distributor. Clark Enterprises
argued that there was no evidence on record that the tires it imported from CHEN, Inc.
bore the mark Light Year and Clark Enterprises was able to prove that it was the first to use
the mark here in the Philippines. Decide the case. (4%)

XVI.
A. On the anti-money laundering laws:
1. What is the distinction between a "covered transaction report" and a
"suspicious transaction report"? (2%)
2. Does the Anti-Money Laundering Council have the authority to freeze
deposits? Explain. (2%)
B. On foreign investments:
1. A foreign company has a distributor in the Philippines. The latter acts
in his own name and account. Will this distributorship be considered as
doing business by the foreign company in the Philippines? (3%)
2. ABC Corporation was organized in Malaysia but has a branch in the
Philippines. It is entirely owned by Filipino citizens. Can you consider
ABC Corporation a Philippine national? (2%)
---ooo0ooo---

IV.

Procopio, a call center agent assigned at a graveyard shift, went home earlier
than usual. He proceeded immediately to their bedroom to change his clothes. To
his surprise, he found his wife Bionci in bed making love to another woman
Magna. Enraged, Procopio grabbed a knife nearby and stabbed Bionci, who died.
a) What crime did Procopio commit, and what circumstance attended the
case? Explain. (3%)
b) Assuming that Procopio and Bionci were common-law spouses, will
your answer be the same? Explain. (2%)

V.

JUSTICE TERESITA J. LEONARDO-DE CASTRO

Chairperson
2015 Bar Examinations
CRIMINAL
I.

Dion and Talia were spouses. Dion always came home drunk since he lost his job
a couple of months ago. Talia had gotten used to the verbal abuse from Dion. One
night, in addition to the usual verbal abuse, Dion beat up Talia. The next morning,
Dion saw the injury that he had inflicted upon Talia and promised her that he
would stop drinking and never beat her again. However, Dion did not make good
on his promise. Just after one week, he started drinking again. Talia once more
endured the usual verbal abuse. Afraid that he might beat her up again, Talia
stabbed Dion with a kitchen knife while he was passed out from imbibing too
much alcohol. Talia was charged with the crime of parricide.
a) May Talia invoke the defense of Battered Woman Syndrome to free
herself from criminal liability? Explain. (2.5%)

a) How are felonies committed? Explain each. (3%)

b) Will your answer be the same, assuming that Talia killed Dion after
being beaten up after a second time? Explain. (2.5%)

b) What is aberratio ictus? (2%)

II.

Distinguish between ex post facto law and bill of attainder. (3%)

III.

The Regional Trial Court {RTC) found Tiburcio guilty of frustrated homicide and
sentenced him to an indeterminate penalty of four years and one day of prision
correccional as minimum, to eight years ofprision mayor as maximum, and
ordered him to pay actual damages in the amount of 1125,000.00. Tiburcio
appealed to the Court of Appeals which sustained his conviction as well as the
penalty imposed by the court a quo. After sixty days, the Court of Appeals issued
an Entry of Judgment and remanded the records of the case to the RTC. Three
days thereafter, Tiburcio died of heart attack. Atty. Abdul, Tiburcio's counsel, filed
before the RTC a Manifestation with Motion to Dismiss, informing the court that
Tiburcio died already, and claiming that his criminal liability had been extinguished
by his demise.

VI.

Senator Adamos was convicted of plunder. About one year after beginning to
serve his sentence, the President of the Philippines granted him absolute pardon.
The signed pardon states: "In view hereof, and in pursuance of the authority
vested upon me by the Constitution, I hereby grant absolute pardon unto Adamos,
who was convicted of plunder in Criminal Case No. XV32 and upon whom the
penalty ofreclusion perpetua was imposed." He now comes to you for advice. He
wants to know if he could run for senator in the next election.
a) What advice will you give Adamos? Explain. (2.5%)
b) Assuming that what Adamos committed was heading a rebellion for
which he was imposed the same penalty of reclusion perpetua, and what
he received was amnesty from the government, will your answer be the
same? Explain. (2.5%)

a) Should the RTC grant the Motion to Dismiss the case? Explain. (2.5%)
VII.
b) Assuming that Tiburcio' s death occurred before the Court of Appeals
rendered its decision, will you give a different answer? Explain. (2.5%)

Taylor was convicted of a violation of the Election Code, and was sentenced to
suffer imprisonment of one year as minimum, to three years as maximum. The
decision of the trial court was affirmed on appeal and became final and executory.
Taylor failed to appear when summoned for execution of judgment, prompting the
judge to issue an order for his arrest. Taylor was able to use the backdoor and left

for the United States. Fifteen years later, Taylor returned to the Philippines and
filed a Motion to Quash the warrant of arrest against him, on the ground that the
penalty imposed against him had already prescribed.

b) May Rado adopt as his own Ernilo's defense? Explain. (2.5%)

X.

a) If you were the judge, would you grant Taylor's Motion to Quash?
Explain. (2.5%)
b) Assuming that instead of the United States, Taylor was able to go to
another country with which the Philippines had no extradition treaty, will
your answer be the same? Explain. (2.5%)
VIII.

A typhoon destroyed the houses of many of the inhabitants of X Municipality.

Thereafter, X Municipality operated a shelter assistance program whereby
construction materials were provided to the calamity victims, and the beneficiaries
provided the labor. The construction was partially done when the beneficiaries
stopped helping with the construction for the reason that they needed to earn
income to provide food for their families. When informed of the situation, Mayor
Maawain approved the withdrawal of ten boxes of food from X Municipality's
feeding program, which were given to the families of the beneficiaries of the
shelter assistance program. The appropriations for the funds pertaining to the
shelter assistance program and those for the feeding program were separate
items on X Municipality's annual budget.
a) What crime did Mayor Maawain commit? Explain. (2.5%)

It turned out that Wilma did not report for work on that day, and the one who was
shot in the head was Melba, who died. The passerby whose arm was grazed by
the bullet required medical attendance for two days.
a) What crime(s) did Honesto commit? Explain. (2.5%)
b) Will your answer be the same, assuming that the other passerby was
hit in the left eye which caused his/her blindness? Explain. (2.5%)
XI.

b) May Mayor Maawain invoke the defense of good faith and that he had
no evil intent when he approved the transfer of the boxes of food from
the feeding program to the shelter assistance program? Explain. (2.5%)
IX.

The Philippine Drug Enforcement Agency (PDEA) had intelligence reports about
the drug pushing activities of Rado, but could not arrest him for lack of concrete
evidence. SP03 Relio, a PDEA team leader, approached Emilo and requested him
to act as poseur-buyer of shabu and transact with Rado. Emilo refused, saying
that he had completely been rehabilitated and did not want to have anything to do
with drugs anymore. But he was prevailed upon to help when SP03 Relio
explained that only he could help capture Rado because he used to be his
customer. SP03 Relio then gave Emilo the marked money to be used in
buying shabu from Rado. The operation proceeded. After Emilo handed the
marked money to Rado in exchange for the sachets of shabu weighing 50 grams,
and upon receiving the pre-arranged signal from Ernilo, SP03 Relio and his team
members barged in and arrested Rado and Ernilo, who were both charged with
violation of R.A. 9165, otherwise known as the Comprehensive Dangerous Drugs
Act of 2002.
a) What defense, if any, may Ernilo invoke to free himself from criminal
liability? Explain. (2.5%)

Honesto and Wilma were married but had been living separately due to
irreconcilable differences. Honesto later met Celia and fell in love with her.
Thinking that he could marry Celia if Wilma were to die, Honesto decided to kill
Wilma. He secretly followed Wilma for weeks to learn her daily routine. He
decided to kill her at night on her way home. On the night he was to kill Wilma,
Honesto wore dark clothes so that he would not be easily seen. He waited in the
dark alley for Wilma to pass by. He saw someone whom he thought looked like
Wilma and shot her with a revolver. The bullet passed through the person's head
and grazed another passerby's arm. Some bystanders who heard the shot were
able to stop Honesto.

Nel learned that Elgar, the owner of the biggest house in the place, would be out
of town for three days with no one left to watch the house. He called his friends
Ben, Ardo and Gorio and they planned to take the valuables in the house while
Elgar was away. Nel and Ben would go inside the house, Ardo would serve as the
lookout, while Gorio would stay in the getaway car. When Elgar left, they carried
out their plan to the letter. Nel and Ben went inside the house through the
backdoor which was left unlocked. None of the rooms and drawers inside were
locked. They took the money, jewelry and other valuables therefrom and
immediately left using the getaway car.
After driving for about one kilometer, Nel realized he left his bag and wallet with
IDs in the house and so he instructed Gorio to drive back to the house. Nel just
went in thinking that the house was still empty. But to his surprise, Nel found
Fermin seated on a bench with Nel's bag and wallet beside him and appeared to
be texting using his smart phone. Nel took a golf club near him and hit Fermin with
it. Fermin shouted for help, but Nel kept hitting him until he stopped making noise.
The noise alerted the neighbor who called the police. Nel, Ben, Ardo and Gorio
were caught. Fermin died. What is the criminal liability of Nel, Ben, Ardo and
Gorio? Explain. (5%)

XII.

Ando, an Indonesian national who just visited the Philippines, purchased a ticket
for a passenger vessel bound for Hong Kong. While on board the vessel, he saw
his mortal enemy Iason, also an Indonesian national, seated at the back portion of
the cabin and who was busy reading a newspaper. Ando stealthily approached
Iason and when he was near him, Ando stabbed and killed Iason. The vessel is

registered in Malaysia. The killing happened just a few moments after the vessel
left the port of Manila. Operatives from the PNP Maritime Command arrested
Ando. Presented for the killing of Iason, Ando contended that he did not incur
criminal liability because both he and the victim were Indonesians. He likewise
argued that he could not be prosecuted in Manila because the vessel is a
Malaysian-registered ship. Discuss the merits of Ando's contentions. (4%)
XIII.

Dora gave Elen several pieces of jewelry for sale on commission basis. They
agreed that Elen would remit the proceeds of the sale and return the unsold items
to Dora within sixty days. The period expired without Elen remitting the proceeds
of the sale or returning the pieces of jewelry. Dora demanded by phone that Elen
turn over the proceeds of the sale and return the unsold pieces of jewelry. Elen
promised to do so the following day. El en still failed to make good on her promise
but instead issued post-dated checks. Thereafter, Dora made several more
demands, the last of which was in writing, but they were all unheeded. When the
checks were deposited in Dora's bank account, the checks were returned unpaid
for insufficient funds. Elen was charged with estafa and violation of Batas
Pambansa Big. 22. Will the charges against Elen prosper? Explain. (4%)

XVI.

Erwin and Bea approached Mayor Abral and requested him to solemnize their
marriage. Mayor Abral agreed. Erwin and Bea went to Mayor Abral's office on the
day of the ceremony, but Mayor Abral was not there. When Erwin and Bea
inquired where Mayor Abral was, his chief of staff Donato informed them that the
Mayor was campaigning for the coming elections. Donato told them that the
Mayor authorized him to solemnize the marriage and that Mayor Abral would just
sign the documents when he arrived. Donato thereafter solemnized the marriage
and later turned over the documents to Mayor Abral for his signature. In the
marriage contract, it was stated that the marriage was solemnized by Mayor Abral.
What crime(s) did Mayor Abral and Donato commit? Explain. (4%)

XVII.

After a heated argument over his philandering, Higino punched on the head his
wife Aika, who was six and a half months pregnant. Because of the impact, Aika
lost her balance, fell on the floor with her head hitting a hard object. Aika died and
the child was expelled prematurely. After thirty-six hours, the child died.
a) What crime(s) did Higino commit? Explain. (2.5%)
b) Assuming that when the incident occurred, Aika was only six months
pregnant, and when she died, the fetus inside her womb also died, will
your answer be different? Explain. (2.5%)

XIV.

Dela convinced Nita to work in Taiwan, promising Nita that she would take care of
the processing of the necessary documents. Dela collected P120,000.00 from
Nita purportedly for the processing of her papers. Upon receipt of the money, Nita
was made to accomplish certain forms and was told that she would be deployed
to Taiwan within one month. After one month, Nita followed up on her application.
Dela made some excuses and told Nita that the deployment would be delayed.
Another month passed and Dela made other excuses which made Nita
suspicious. Nita later discovered that Dela was not licensed to recruit. Nita
confronted Dela and demanded the return of her money. Dela promised to return
the same in a week's time.

XVIII.

Lito, a minor, was bullied by Brutus, his classmate. Having had enough, Lito got
the key to the safe where his father kept his licensed pistol and took the weapon.
Knowing that Brutus usually hung out at a nearby abandoned building after class,
Lito went ahead and hid while waiting for Brutus. When Lito was convinced that
Brutus was alone, he shot Brutus, who died on the spot. Lito then hid the gun in
one of the empty containers. At the time of the shooting, Lito was fifteen years and
one month old. What is Lito's criminal liability? Explain. (4%)

XIX.

Bruno, a taxi driver, had an indebtedness in the sum of P10,000.00 which would
become due in one week. He was starting to worry because he still had not raised
the amount to pay for his debt. Every day, he had prayed for divine intervention.
One night, while returning the taxi to the garage, he found a wallet on the back
seat. Inspecting it, he learned that it contained exactly Pl 0,000.00 cash, the
amount of his obligation, and IDs. Thinking it was divine intervention, and that his
prayers were answered, he took the money and used it to pay his debt.

a) A week later, Dela was nowhere to be found. What crime(s) did Dela
commit? Explain. (2.5%)
b) Will your answer still be the same, assuming that the promise to
deploy for employment abroad was made by Dela to Celia, Digna and
Emma, in addition to Nita, and from whom Dela also collected the same
amount of processing fee? Explain. (2.5%)
XV.

Dancio, a member of a drug syndicate, was a detention prisoner in the provincial

jail of X Province. Brusco, another member of the syndicate, regularly visited
Dancio. Edri, the guard in charge who had been receiving gifts from Brusco
everytime he visited Dancio, became friendly with him and became relaxed in the
inspection of his belongings during his jail visits. In one of Brusco's visits, he was
able to smuggle in a pistol which Dancio used to disarm the guards and destroy
the padlock of the main gate of the jail, enabling Dancio to escape. What crime(s)
did Dancio, Brusco and Edri commit? Explain. (5%)

a) What crime, if any, did Bruno commit? Explain. (2.5%)

b) Assuming that instead of using the money, Bruno turned over the
wallet and its contents to the nearby police station, and it was the chief of
police of that station who appropriated the money for his own benefit,
what crime was committed by the chief of police? Explain. (2.5%)
XX.

Senio planned to burn Bal' s house. One evening, during a drinking spree at his
house, Senio told his friends what he intended to do and even showed them the

gasoline in cans that he would use for the purpose. Carlo, a common friend of
Senio and Bal, was present at the drinking spree. He was still sober when Senio
told them his plans. Before going home, Carlo warned Bal that Senio would burn
his house and had already bought gasoline that would be used for the purpose.
Bal reported the matter to the police authorities. Meanwhile, Senio went to Bal' s
house and proceeded to pour gasoline around the walls of the house and it was at
that point when he was caught by the police. What crime did Senio commit, if
any? Explain. (3%)
XXI.

Filipino citizens Hector and Wendy were married in New York, and have been
living happily in Manila for the last three years. Hector was removing junk from his
basement when he came across an unlabeled recordable cd. He put it in his
computer's DVD drive to check its contents. To his surprise, he saw a video of
Wendy and another man Ariel, in the act of sexual intercourse in the master's
bedroom of his house. Angered by what he saw, he filed a complaint for adultery
against Wendy and Ariel. During the course of the trial, and again to the surprise
of Hector, it was proved that Wendy was born male and underwent sex
reassignment later in life.
a) May Hector's charge of adultery against Wendy and Ariel prosper?
Explain. (3%)
b) What is an impossible crime? Can there be an impossible crime of
adultery? (2%)

JUSTICE TERESITA J. LEONARDO-DE CASTRO

Chairperson
2015 Bar Examinations
CIVIL
I.
Alden and Stela were both former Filipino citizens. They were married in the Philippines but
they later migrated to the United States where they were naturalized as American citizens.
In their union they were able to accumulate several real properties both in the US and in
the Philippines. Unfortunately, they were not blessed with children. In the US, they
executed a joint will instituting as their common heirs to divide their combined estate in
equal shares, the five siblings of Alden and the seven siblings of Stela. Alden passed away
in 2013 and a year later, Stela also died. The siblings of Alden who were all citizens of the
US instituted probate proceedings in a US court impleading the siblings of Stela who were
all in the Philippines.
a) Was the joint will executed by Alden and Stela who were both former Filipinos
valid? Explain with legal basis. (3%)
b) Can the joint will produce legal effect in the Philippines with respect to the
properties of Alden and Stela found here? If so, how? (3%)
c) Is the situation presented in Item I an example of depe9age? (2%)
II.

XXII.

Charlie was charged for the qualified rape of AAA. The Information alleged that
AAA was 14 years old at the time the crime was committed and that Charlie was
AAA's stepfather. The presentation of AAA's birth certificate during the trial duly
established the following: (1) that AAA was indeed 14 years old at the time of the
rape; and (2) that AAA's mother is BBB and her father was the late CCC. BBB and
Charlie only became live-in partners after CCC's death. The RTC found Charlie
guilty of qualified rape. On appeal, the Court of Appeals convicted Charlie of
simple rape. Charlie appealed before the Supreme Court. How will you rule and
why? (3%)
---ooo0ooo---

Marco and Gina were married in 1989. Ten years later, or in 1999, Gina left Marco and
lived with another man, leaving their two children of school age with Marco. When Marco
needed money for their children's education he sold a parcel of land registered in his
name, without Gina's consent, which he purchased before his marriage. Is the sale by
Marco valid, void or voidable? Explain with legal basis. (4%)
III.
Julie had a relationship with a married man who had legitimate children. A son was born
out of that illicit relationship in 1981. Although the putative father did not recognize the child
in his certificate of birth, he nevertheless provided the child with all the support he needed
and spent time regularly with the child and his mother. When the man died in 2000, the
child was already 18 years old so he filed a petition to be recognized as an illegitimate child
of the putative father and sought to be given a share in his putative father's estate. The

legitimate family opposed, saying that under the Family Code his action cannot prosper
because he did not bring the action for recognition during the lifetime of his putative father.
a) If you were the judge in this case, how would you rule? (4%)
b) Wishing to keep the peace, the child during the pendency of the case decides
to compromise with his putative father's family by abandoning his petition in
exchange for 1/2 of what he would have received as inheritance if he were
recognized as an illegitimate child. As the judge, would you approve such a
compromise? (2%)
IV.
Bert and Joe, both male and single, lived together as common law spouses and agreed to
raise a son of Bert's living brother as their child without legally adopting him. Bert worked
while Joe took care of their home and the boy. In their 20 years of cohabitation they were
able to acquire real estate assets registered in their names as co-owners. Unfortunately,
Bert died of cardiac arrest, leaving no will. Bert was survived by his biological siblings, Joe,
and the boy.
a) Can Article 147 on co-ownership apply to Bert and Joe, whereby all properties
they acquired will be presumed to have been acquired by their joint industry and
shall be owned by them in equal shares? (2%)
b) What are the successional rights of the boy Bert and Joe raised as their son?
(2%)
c) If Bert and Joe had decided in the early years of their cohabitation to jointly
adopt the boy, would they have been legally allowed to do so? Explain with legal
basis. (3%)
V.
Mrs. L was married to a ship captain who worked for an international maritime vessel. For
her and her family's support, she would claim monthly allotments from her husband's
company. One day, while en route from Hong Kong to Manila, the vessel manned by
Captain L encountered a severe typhoon at sea. The captain was able to send radio
messages of distress to the head office until all communications were lost. In the weeks
that followed, the search operations yielded debris of the lost ship but the bodies of the
crew and the passengers were not recovered. The insurance company thereafter paid out
the death benefits to all the heirs of the passengers and crew. Mrs. L filed a complaint
demanding that her monthly allotments continue for the next four years until her husband
may be legally presumed dead because of his absence. If you were the magistrate, how
would you rule? (3%)

VI.
Kardo met Glenda as a young lieutenant and after a whirlwind courtship, they were
married. In the early part of his military career, Kardo was assigned to different places all
over the country but Glenda refused to accompany him as she preferred to live in her
hometown. They did not live together until the 12th year of their marriage when Kardo had
risen up the ranks and was given his own command. They moved to living quarters in Fort
Gregorio. One day, while Kardo was away on official business, one of his military aides
caught Glenda having sex with the corporal assigned as Kardo's driver. The aide
immediately reported the matter to Kardo who rushed home to confront his wife. Glenda
readily admitted the affair and Kardo sent her away in anger. Kardo would later come to
know the true extent of Glenda's unfaithfulness from his aides, his household staff, and
former neighbors who informed him that Glenda has had intimate relations with various
men throughout their marriage whenever Kardo was away on assignment.
Kardo filed a petition for declaration of nullity of marriage under Article 36. Based on
interviews from Kardo, his aide, and the housekeeper, a psychologist testified that Glenda's
habitual infidelity was due to her affliction with Histrionic Personality Disorder, an illness
characterized by excessive emotionalism and uncontrollable attention-seeking behavior
rooted in Glenda's abandonment as a child by her father. Kardo himself, his aide, and his
housekeeper also testified in court. The RTC granted the petition, relying on the liberality
espoused by Te v. Teand Azcueta v. Republic. However, the OSG filed an appeal, arguing
that sexual infidelity was only a ground for legal separation and that the RTC failed to abide
by the guidelines laid down in the Molina case. How would you decide the appeal? (5%)
VII.
Mr. and Mrs. X migrated to the US with all their children. As they had no intention of coming
back, they offered their house and lot for sale to their neighbors, Mr. and Mrs. A (the
buyers) who agreed to buy the property for 128 Million. Because Mr. and Mrs. A needed to
obtain a loan from a bank first, and since the sellers were in a hurry to migrate, the latter
told the buyers that they could already occupy the house, renovate it as it was already in a
state of disrepair, and pay only when their loan is approved and released. While waiting for
the loan approval, the buyers spent .Pl Million in repairing the house. A month later, a
person carrying an authenticated special power of attorney from the sellers demanded that
the buyers either immediately pay for the property in full now or vacate it and pay damages
for having made improvements on the property without a sale having been perfected.
a) What are the buyers' options or legal rights with respect to the expenses they
incurred in improving the property under the circumstances? (3%)
b) Can the buyers be made to immediately vacate on the ground that the sale was
not perfected? Explain briefly. (3%)
VIII.
X, Y, Z are siblings who inherited a IO-storey building from their parents. They agreed in
writing to maintain it as a co-owned property for leasing out and to divide the net profits
among themselves equally for a period of 20 years. On the 8th year, X wanted to get out of
the co-ownership so he could get his 1/3 share in the property. Y and Z refused, saying X is
bound by their agreement to keep the co-ownership for 20 years. Are Y and Z correct?
Explain. (3%)

IX.
Jose, single, donated a house and lot to his only niece, Maria, who was of legal age and
who accepted the donation. The donation and Maria's acceptance thereof were evidenced
by a Deed of Donation. Maria then lived in the house and lot donated to her, religiously
paying real estate taxes thereon. Twelve years later, when Jose had already passed away,
a woman claiming to be an illegitimate daughter of Jose filed a complaint against Maria.
Claiming rights as an heir, the woman prayed that Maria be ordered to reconvey the house
and lot to Jose's estate. In her complaint she alleged that the notary public who notarized
the Deed of Donation had an expired notarial commission when the Deed of Donation was
executed by Jose. Can Maria be made to reconvey the property? What can she put up as a
defense? (4%)

<
p align="center">XIII.
A. X and Y are partners in a shop offering portrait painting. Y provided the capital
and the marketing while X was the portrait artist. They accepted the P50,000.00
payment of Kyla to do her portrait but X passed away without being able to do it.
Can Kyla demand that Y deliver the portrait she had paid for because she was
dealing with the business establishment and not with the artist personally? Why or
why not? (3%)
B. In this jurisdiction, is a joint venture (i.e., a group of corporations contributing
resources for a specific project and sharing the profits therefrom) considered a
partnership? (3%)

X.
XIV.
X, a dressmaker, accepted clothing materials from Karla to make two dresses for her. On
the day X was supposed to deliver Karla's dresses, X called up Karla to say that she had
an urgent matter to attend to and will deliver them the next day. That night, however, a
robber broke into her shop and took everything including Karla's two dresses. X claims she
is not liable to deliver Karla's dresses or to pay for the clothing materials considering she
herself was a victim of the robbery which was a fortuitous event and over which she had no
control. Do you agree? Why? (3%)

A driver of a bus owned by company Z ran over a boy who died instantly. A
criminal case for reckless imprudence resulting in homicide was filed against the
driver. He was convicted and was ordered to pay P2 Million in actual and moral
damages to the parents of the boy who was an honor student and had a bright
future. Without even trying to find out if the driver had assets or means to pay the
award of damages, the parents of the boy filed a civil action against the bus
company to make it directly liable for the damages.

XI.
a) Will their action prosper? (4%)
Jackie, 16, inherited a townhouse. Because she wanted to study in an exclusive school,
she sold her townhouse by signing a Deed of Sale and turning over possession of the
same to the buyer. When the buyer discovered that she was still a minor, she promised to
execute another Deed of Sale when she turns 18. When Jackie turned 25 and was already
working, she wanted to annul the sale and return the buyer's money to recover her
townhouse. Was the sale contract void, voidable or valid? Can Jackie still recover the
property? Explain. (4%)
XII.
A. Iya and Betty owed Jun P500,000.00 for advancing their equity in a corporation
they joined as incorporators. Iya and Betty bound themselves solidarily liable for
the debt. Later, Iya and Jun became sweethearts so Jun condoned the debt of
P500,000.00. May lya demand from Betty P250,000.00 as her share in the debt?
Explain with legal basis. (2%)
B. Juancho, Don and Pedro borrowed P150,000.00 from their friend Cita to put up
an internet cafe orally promising to pay her the full amount after one year.
Because of their lack of business know-how, their business collapsed. Juancho
and Don ended up penniless but Pedro was able to borrow money and put up a
restaurant which did well. Can Cita demand that Pedro pay the entire obligation
since he, together with the two others, promised to pay the amount in full after one
year? Defend your answer. (2%)

b) If the parents of the boy do not wish to file a separate civil action
against. the bus company, can they still make the bus company liable if
the driver cannot' pay the award for damages? If so, what is the nature of
the employer's liability and how may civil damages be satisfied? (3%)
XV.
A. Sara borrowed P50,000.00 from Julia and orally promised to pay it within six
months. When Sara tried to pay her debt on the 8th month, Julia demanded the
payment of interest of 12o/o per annum because of Sara's delay in payment. Sara
paid her debt and the interest claimed by Julia. After rethinking, Sara demanded
back from Julia the amount she had paid as interest. Julia claims she has no
obligation to return the interest paid by Sara because it was a natural obligation
which Sara voluntarily performed and can no longer recover. Do you agree?
Explain. (4%)
B. Distinguish civil and natural obligations. (2%)

XVI.
Donna pledged a set of diamond ring and earrings to Jane for P200,000.00 She was made
to sign an agreement that if she cannot pay her debt within six months, Jane could
immediately appropriate the jewelry for herself. After six months, Donna failed to pay. Jane
then displayed the earrings and ring set in her jewelry shop located in a mall. A buyer,
Juana, bought the jewelry set for P300,000.00.
a) Was the agreement which Donna signed with Jane valid? Explain with legal
basis. (2%)

XX.
A. Mr. and Mrs. Roman and Mr. and Mrs. Cruz filed an application for registration
of a parcel of land which after due proceedings was granted by the RTC acting as
a land registration court. However, before the decree of registration could be
issued, the spouses Roman and the spouses Cruz sold the lot to Juan. In the
notarized deed of sale, the sellers expressly undertook to submit the deed of sale
to the land registration court so that the title to the property would be directly
issued in Juan's name. Is such a stipulation valid? (2%)
B. Distinguish a direct attack from a collateral attack on a title. (2%)

b) Can Donna redeem the jewelry set from Juana by paying the amount she owed
Jane to Juana? Explain with legal basis. (2%)
c) Give an example of a pledge created by operation of law. (2%)
XVII.
Z, a gambler, wagered and lost P2 Million in baccarat, a card game. He was pressured into
signing a Deed of Absolute Sale in favor of the winner covering a parcel of land with
improvements worth P20 Million. One month later, the supposed vendee of the property
demanded that he and his family vacate the property subject of the deed of sale. Was the
deed of sale valid? What can Z do? (4%)
XVIII.
A lawyer was given an authority by means of a Special Power of Attorney by his client to
sell a parcel of land for the amount of P3 Million. Since the client owed the lawyer P1
Million in attorney's fees in a prior case he handled, the client agreed that if the property is
sold, the lawyer was entitled to get 5% agent's fee plus P1 Million as payment for his
unpaid attorney's fees. The client, however, subsequently found a buyer of his own who
was willing to buy the property for a higher amount. Can the client unilaterally rescind the
authority he gave in favor of his lawyer? Why or why not? (4%)
XIX.
Mr. A, a businessman, put several real estate properties under the name of his eldest son
X because at that time, X was the only one of legal age among his four children. He told his
son he was to hold those assets for his siblings until they become adults themselves. X
then got married. After 5 years, Mr. A asked X to transfer the titles over three properties to
his three siblings, leaving two properties for himself. To A's surprise, X said that he can no
longer be made to transfer the properties to his siblings because more than 5 years have
passed since the titles were registered in his name. Do you agree? Explain. (4%)

C. If the title in Item XX.A is issued in the names of the original sellers, would a
motion filed by Juan in the same case to correct or amend the title in order to
reflect his name as owner be considered a collateral attack? (2%)
---ooo0ooo---

JUSTICE TERESITA J. LEONARDO-DE CASTRO

Chairperson
2015 Bar Examinations
TAXATION
I.

Explain the principles of a sound tax system. (3%)

II.

Mr. A, a citizen and resident of the Philippines, is a professional boxer. In a

professional boxing match held in 2013, he won prize money in United States
(US) dollars equivalent to P300,000,000.
a) Is the prize money paid to and received by Mr. A in the US taxable in
the Philippines? Why? (2%)
b) May Mr. A's prize money qualify as an exclusion from his gross
income? Why? (2%)
c) The US already imposed and withheld income taxes from Mr. A's prize
money. How may Mr. A use or apply the income taxes he paid on his
prize money to the US when he computes his income tax liability in the
Philippines for 2013? (4%)

III.

Ms. C, a resident citizen, bought ready-to-wear goods from Ms. B, a nonresident

citizen.
a) If the goods were produced from Ms. B's factory in the Philippines, is
Ms. B's income from the sale to Ms. C taxable in the Philippines?
Explain. (2%)
b) If Ms. B is an alien individual and the goods were produced in her
factory in China, is Ms. B's income from the sale of the goods to Ms. C
taxable in the Philippines? Explain. (2%)

IV.

Mr. E and Ms. F are both employees of AAA Corp. They got married on February
14, 2011. On December 29, 2011, the couple gave birth to triplets. On June 25,

2013, they had twins. What were the personal exemptions/deductions which Mr. E
and Ms. F could claim in the following taxable years:
a) For2010 (2%)
IX.
b) For 2011 (3%)
c) For 2013 (2%)
V.

BBB, Inc., a domestic corporation, enjoyed a particularly profitable year in 2014.

In June 2015, its Board of Directors approved the distribution of cash dividends to
its stockholders. BBB, Inc. has individual and corporate stockholders. What is the
tax treatment of the cash dividends received from BBB, Inc. by the following
stockholders:

a) Did the CTA acquire jurisdiction over the Petition of FFF, Inc.? (2%)
b) Discuss the proper procedure and applicable time periods for
administrative and judicial claims for refund/credit of unutilized excess
input VAT. (4%)

a) A resident citizen (1%)

b) Non-resident alien engaged in trade or business (1%)
c) Non-resident alien not engaged in trade or business (1% )

X.

d) Domestic corporation (1%)

Differentiate between double taxation in the strict sense and in a broad sense and
give an example of each. (4%)

VII.

On May 15, 2013, CCC, Inc. received the Final Decision on Disputed Assessment
issued by the Commissioner of Internal Revenue (CIR) dismissing the protest of
CCC, Inc. and affirming the assessment against said corporation. On June 10,
2013, CCC, Inc. filed a Petition for Review with the Court of Tax Appeals (CTA) in
division. On July 31, 2015, CCC, Inc. received a copy of the Decision dated July
22, 2015 of the CT A division dismissing its Petition. CCC, Inc. immediately filed a
Petition for Review with the CT A en banc on August 6, 2015. Is the immediate
appeal by CCC, Inc. to the CTA en banc of the adverse Decision of the CTA
division the proper remedy? (3%)

VIII.

In June 2013, DDD Corp., a domestic corporation engaged in the business of

leasing real properties in the Philippines, entered into a lease agreement of a
residential house and lot with EEE, Inc., a non-resident foreign corporation. The
residential house and lot will be used by officials of EEE, Inc. during their visit to
the Philippines. The lease agreement was signed by representatives from DDD
Corp. and EEE, Inc. in Singapore. DDD Corp. did not subject the said lease to
VAT believing that it was not a domestic service contract. Was DDD Corp.
correct? Explain. (3%)

Indicate whether each of the following individuals is required or not required to file
an income tax return:
a) Filipino citizen residing outside the Philippines on his income from
sources outside the Philippines. (1%)

e) Non-resident foreign corporation (1%)

VI.

For calendar year 2011, FFF, Inc., a VAT-registered corporation, reported

unutilized excess input VAT in the amount of Pl ,000,000.00 attributable to its
zero-rated sales. Hoping to impress his boss, Mr. G, the accountant of FFF, Inc.,
filed with the Bureau of Internal Revenue (BIR) on January 31, 2013 a claim for
tax refund/credit of the Pl,000,000.00 unutilized excess input VAT of FFF, Inc. for
2011. Not having received any communication from the BIR, Mr. G filed a Petition
for Review with the CTA on March 15, 2013, praying for the tax refund/credit of the
Pl,000,000.00 unutilized excess input VAT of FFF, Inc. for 2011.

b) Resident alien on income derived from sources within the Philippines.

(1%)
c) Resident citizen earning purely compensation income from two
employers within the Philippines, whose income taxes have been
correctly withheld. (1%)
d) Resident citizen who falls under the classification of minimum wage
earners. (1%)
e) An individual whose sole income has been subjected to final
withholding tax. (1%)
XI.

What are de minim is benefits and how are these taxed? Give three (3) examples
of de minimis benefits. (4%)

XII.

Mr. H decided to sell the house and lot wherein he and his family have lived for
the past 10 years, hoping to buy and move to a new house and lot closer to his
children's school. Concerned about the capital gains tax that will be due on the
sale of their house, Mr. H approaches you as a friend for advice if it is possible for
the sale of their house to be exempted from capital gains tax and the conditions

they must comply with to avail themselves of said exemption. How will you
respond? (4%)
XIII.

XIV.

By virtue of its mandate, LLL reclaimed several portions of the foreshore and
offshore areas of the Manila Bay, some of which were within the territorial
jurisdiction of Q City. Certificates of title to the reclaimed properties in Q City were
issued in the name of LLL in 2008. In 2014, Q City issued Warrants of Levy on
said reclaimed properties of LLL based on the assessment for delinquent property
taxes for the years 2010 to 2013.

GGG, Inc. offered to sell through competitive bidding its shares in HHH Corp.,
equivalent to 40% of the total outstanding capital stock of the latter. JJJ, Inc.
acquired the said shares in HHH Corp. as the highest bidder. Before it could
secure a certificate authorizing registration/tax clearance for the transfer of the
shares of stock to JJJ, Inc., GGG, Inc. had to request a ruling from the BIR
confirming that its sale of the said shares was at fair market value and was thus
not subject to donor's tax. In BIR Ruling No. 012-14, the CIR held that the selling
price for the shares of stock of HHH Corp. was lower than their book value, so the
difference between the selling price and the book value of said shares was a
taxable donation. GGG, Inc. requested the Secretary of Finance to review BIR
Ruling No. 012-14, but the Secretary affirmed said ruling. GGG, Inc. filed with the
Court of Appeals a Petition for Review under Rule 43 of the Revised Rules of
Court. The Court of Appeals, however, dismissed the Petition for lack of
jurisdiction declaring that it is the CTA which has jurisdiction over the issues
raised. Before which Court should GGG, Inc. seek recourse from the adverse
ruling of the Secretary of Finance in the exercise of the latter's power of review?
(3%)
KKK Corp. secured its Certificate of Incorporation from the Securities and
Exchange Commission on June 3, 2013. It commenced business operations on
August 12, 2013. In April 2014, Ms. J, an employee of KKK Corp. in charge of
preparing the annual income tax return of the corporation for 2013, got confused
on whether she should prepare payment for the regular corporate income tax or
the minimum corporate income tax.

a. Are the reclaimed properties registered in the name of LLL subject to

real property tax? (4 % )
b. Will your answer be the same in (a) if from 2010 to the present time,
LLL is leasing portions of the reclaimed properties for the establishment
and use of popular fastfood restaurants J Burgers, G Pizza, and K
Chicken? (2%)

XVII.

Mr. L owned several parcels of land and he donated a parcel each to his two
children. Mr. L acquired both parcels of land in 1975 for ll200,000.00. At the time
of donation, the fair market value of the two parcels of land, as determined by the
CIR, was 112,300,000.00; while the fair market value of the same properties as
shown in the schedule of values prepared by the City Assessors was
112,500,000.00. What is the proper valuation of Mr. L's gifts to his children for
purposes of computing donor's tax? (3%)

XVIII.

Under the Tariff and Customs Code, as amended:

a) As Ms. J's supervisor, what will be your advice? (2%)

b) What are the distinctions between regular corporate income tax and
minimum corporate income tax? (3%)
XV.

XVI.

In 2012, Dr. K decided to return to his hometown to start his own practice. At the
end of 2012, Dr. K found that he earned gross professional income in the amount
of P1,000,000.00; while he incurred expenses amounting to P560,000.00
constituting mostly of his office space rent, utilities, and miscellaneous expenses
related to his medical practice. However, to Dr. K's dismay, only P320,000.00 of
his expenses were duly covered by receipts. What are the options available for Dr.
K so he could maximize the deductions from his gross income? (3%)
LLL is a government instrumentality created by Executive Order to be primarily
responsible for integrating and directing all reclamation projects for the National
Government. It was not organized as a stock or a non-stock corporation, nor was
it intended to operate commercially and compete in the private market.

a. When does importation begin and when is it deemed terminated? (2%)

b. In what easels is the decision of the Collector automatically reviewed
by the Commissioner of Customs? In what instance/s is the decision of
the Commissioner automatically appealed to the Secretary of Finance?
(4%)
XIX.

In 2014, M City approved an ordinance levying customs duties and fees on goods
coming into the territorial jurisdiction of the city. Said city ordinance was duly
published on February 15, 2014 with effectivity date on March 1, 2014.
a. Is there a ground for opposing said ordinance? (2%)
b. What is the proper procedural remedy and applicable time periods for
challenging the ordinance? (4%)

XX.

After filing an Information for violation of Section 254 of the National Internal
Revenue Code (Attempt to Evade or Defeat Tax) with the CTA, the Public
Prosecutor manifested that the People is reserving the right to file the
corresponding civil action for the recovery of the civil liability for taxes. As counsel
for the accused, comment on the People's manifestation. (3%)

XXI.

MMM, Inc., a domestic telecommunications company, handles incoming

telecommunications services for non-resident foreign companies by relaying
international calls within the Philippines. To broaden the coverage of its
telecommunications services throughout the country, MMM, Inc. entered into
various interconnection agreements with local carriers. The non-resident foreign
corporations pay MMM, Inc. in US dollars inwardly remitted through Philippine
banks, in accordance with the rules and regulations of theBangko Sentral ng
Pilipinas.
MMM, Inc. filed its Quarterly VAT Returns for 2000. Subsequently, MMM, Inc.
timely filed with the BIR an administrative claim for the refund of the amount of
P6,321,486.50, representing excess input VAT attributable to its effectively zerorated sales in 2000. The BIR ruled to deny the claim for refund of MMM, Inc.
because the VAT official receipts submitted by MMM, Inc. to substantiate said
claim did not bear the words "zero-rated" as required under Section 4.108-1 of
Revenue Regulations (RR) No. 7-95. On appeal, the CTA division and the CT
A en bane affirmed the BIR ruling.
MMM, Inc. appealed to the Supreme Court arguing that the NIRC itself did not
provide for such a requirement. RR No. 7-95 should not prevail over a taxpayer's
substantive right to claim tax refund or credit.

a. Rule on the appeal of MMM, Inc. (3%)

b. Will your answer in (a) be any different if MMM, Inc. was claiming
refund of excess input VAT attributable to its effectively zero-rated sales
in 2012? (2%)
XXII.

State the conditions for allowing the following as deductions from the gross estate
of a citizen or resident alien for the purpose of imposing estate tax:
a. Claims against the estate (2%)
b. Medical expenses (2%)
---ooo0ooo---

Circe, sixty (60) days after her receipt of Sheriff Pluto's return, filed a Motion to
Declare Charybdis in default as Charybdis did not file any responsive pleading.
JUSTICE TERESITA J. LEONARDO-DE CASTRO
Chairperson
2015 Bar Examinations

a.) Should the court declare Charybdis in default? (2%)

Scylla seasonably filed her answer setting forth therein as a defense that
Charybdis had paid the mortgage debt.

REMEDIAL
I.

Lender extended to Borrower a Pl00,000.00 loan covered by a promissory note.

Later, Borrower obtained another Pl00,000.00 loan again covered by a promissory
note. Still later, Borrower obtained a P300,000.00 loan secured by a real estate
mortgage on his land valued at 11500,000.00. Borrower defaulted on his
payments when the loans matured. Despite demand to pay the llS00,000.00 loan,
Borrower refused to pay. Lender, applying the totality rule, filed against Borrower
with the Regional Trial Court (RTC) of Manila, a collection suit for P500,000.00.

b.) On the premise that Charybdis was properly declared in default, what
is the effect of Scylla's answer to the complaint? (2%)
III.

Juliet invoking the provisions of the Rule on Violence Against Women and their
Children filed with the RTC designated as a Family Court a petition for issuance of
a Temporary Protection Order (TPO) against her husband, Romeo. The Family
Court issued a 30-day TPO against Romeo. A day before the expiration of the
TPO, Juliet filed a motion for extension. Romeo in his opposition raised, among
others, the constitutionality of R.A. No. 9262 (The VAWC Law) arguing that the
law authorizing the issuance of a TPO violates the equal protection and due
process clauses of the 1987 Constitution. The Family Court judge, in granting the
motion for extension of the TPO, declined to rule on the constitutionality of R.A.
No. 9262. The Family Court judge reasoned that Family Courts are without
jurisdiction to pass upon constitutional issues, being a special court of limited
jurisdiction and R.A. No. 8369, the law creating the Family Courts, does not
provide for such jurisdiction. Is the Family Court judge correct when he declined to
resolve the constitutionality of R.A. No. 9262? (3%)

IV.

Strauss filed a complaint against Wagner for cancellation of title. Wagner moved
to dismiss the complaint because Grieg, to whom he mortgaged the property as
duly annotated in the TCT, was not impleaded as defendant.

a.) Did Lender correctly apply the totality rule and the rule on joinder of
causes of action? (2%)
At the trial, Borrower's lawyer, while cross-examining Lender,
successfully elicited an admission from the latter that the two promissory
notes have been paid. Thereafter, Borrower's lawyer filed a motion to
dismiss the case on the ground that as proven only P300,000.00 was the
amount due to Lender and which claim is within the exclusive original
jurisdiction of the Metropolitan Trial Court. He further argued that lack of
jurisdiction over the subject matter can be raised at any stage of the
proceedings.
b.) Should the court dismiss the case? (3%)

a.) Should the complaint be dismissed? (3%)

II.

Circe filed with the RTC a complaint for the foreclosure of real estate mortgage
against siblings Scylla and Charybdis, co-owners of the property and
cosignatories to the mortgage deed. The siblings permanently reside in Athens,
Greece. Circe tipped off Sheriff Pluto that Scylla is on a balikbayan trip and is
billeted at the Century Plaza Hotel in Pasay City. Sheriff Pluto went to the hotel
and personally served Scylla the summons, but the latter refused to receive
summons for Charybdis as she was not authorized to do so. Sheriff Pluto
requested Scylla for the email address and fax number of Charybdis which the
latter readily gave. Sheriff Pluto, in his return of the summons, stated that
"Summons for Scylla was served personally as shown by her signature on the
receiving copy of the summons. Summons on Charybdis was served pursuant to
the amendment of Rule 14 by facsimile transmittal of the summons and complaint
on defendant's fax number as evidenced by transmission verification report
automatically generated by the fax machine indicating that it was received by the
fax number to which it was sent on the date and time indicated therein."

b.) If the case should proceed to trial without Grieg being impleaded as a
party to the case, what is his remedy to protect his interest? (2%)
V.

Ernie filed a petition for guardianship over the person and properties of his father,
Ernesto. Upon receipt of the notice of hearing, Ernesto filed an opposition to the
petition. Ernie, before the hearing of the petition, filed a motion to order Ernesto to
submit himself for mental and physical examination which the court granted.
After Ernie's lawyer completed the presentation of evidence in support of the
petition and the court's ruling on the formal offer of evidence, Ernesto's lawyer
filed a demurrer to evidence.
Ernie's lawyer objected on the ground that a demurrer to evidence is not proper in
a special proceeding.

a.) Was Ernie's counsel's objection proper? (2%)

"Makati, Philippines
Dec. 30, 2014

b.) If Ernesto defies the court's order directing him to submit to physical
and mental examinations, can the court order his arrest? (2%)
VI.

For value received from plaintiff, defendant promises to pay plaintiff Pl million,
twelve (12) months from the above indicated date without necessity of demand.

A law was passed declaring Mt. Karbungko as a protected area since it as a major
watershed. The protected area covered a portion located in Municipality A of the
Province I and a portion located in the City of Z of Province II. Maingat is the
leader of Samahan ng Tagapag-ingat ng Karbungko (STK), a people's
organization. He learned that a portion of the mountain located in the City of Z of
Province II was extremely damaged when it was bulldozed and leveled to the
ground, and several trees and plants were cut down and burned by workers of
World Pleasure Resorts, Inc. (WPRI) for the construction of a hotel and golf
course. Upon inquiry with the project site engineer if they had a permit for the
project, Maingat was shown a copy of the Environmental Compliance Certificate
(ECC) issued by the DENR-EMB, Regional Director (RD-DENR-EMB).
Immediately, Maingat and STK filed a petition for the issuance of a writ of
continuing mandamus against RD-DENR-EMB and WPRI with the RTC of
Province I, a designated environmental court, as the RD-DENR-EMB negligently
issued the ECC to WPRI.

Signed
Defendant"
A copy of the promissory note is attached as Annex "A."
Defendant, in his verified answer, alleged among others:
1) Defendant specifically denies the allegation in paragraphs 1 and 2 of the
complaint, the truth being defendant did not execute any promissory note in favor
of plaintiff, or
2) Defendant has paid the Ill million claimed in the promissory note (Annex "A" of
the Complaint) as evidenced by an "Acknowledgment Receipt" duly executed by
plaintiff on January 30, 2015 in Manila with his spouse signing as witness.

On scrutiny of the petition, the court determined that the area where the alleged
actionable neglect or omission subject of the petition took place in the City of Z of
Province II, and therefore cognizable by the RTC of Province II. Thus, the court
dismissed outright the petition for lack of jurisdiction.

A copy of the "Acknowledgment Receipt" is attached as Annex "1" hereof.

Plaintiff filed a motion for judgment on the pleadings on the ground that
defendant's answer failed to tender an issue as the allegations therein on his
defenses are sham for being inconsistent; hence, no defense at all. Defendant
filed an opposition claiming his answer tendered an issue.

a.) Was the court correct in motu proprio dismissing the petition? (3%)
Assuming that the court did not dismiss the petition, the RD-DENR-EMB
in his Comment moved to dismiss the petition on the ground that
petitioners failed to appeal the issuance of the ECC and to exhaust
administrative remedies provided in the DENR Rules and Regulations.

a.) Is judgment on the pleadings proper? (3%)

Defendant filed a motion for summary judgment on the ground that there
are no longer any triable genuine issues of facts.

b.) Should the court dismiss the petition? (3%)

b.) Should the court grant defendant's motion for summary judgment?
(3%)
VIII.
VII.

Plaintiff sued defendant for collection of P 1 million based on the latter's

promissory note. The complaint alleges, among others:
1) Defendant borrowed P1 million from plaintiff as evidenced by a duly executed
promissory note;
2) The promissory note reads:

Aldrin entered into a contract to sell with Neil over a parcel of land. The contract
stipulated a P500,000.00 down payment upon signing and the balance payable in
twelve (12) monthly installments of Pl00,000.00. Aldrin paid the down payment
and had paid three (3) monthly installments when he found out that Neil had sold
the same property to Yuri for Pl.5 million paid in cash. Aldrin sued Neil for specific
performance with damages with the RTC. Yuri, with leave of court, filed an
answer-in-intervention as he had already obtained a TCT in his name. After trial,
the court rendered judgment ordering Aldrin to pay all the installments due, the
cancellation of Yuri's title, and Neil to execute a deed of sale in favor of Aldrin.
When the judgment became final and executory, Aldrin paid Neil all the

installments but the latter refused to execute the deed of sale in favor of the
former.

a.) The judge before issuing the warrant did not personally conduct a
searching examination of the prosecution witnesses in violation of his
client's constitutionally-mandated rights;

Aldrin filed a "Petition for the Issuance of a Writ of Execution" with proper notice of
hearing. The petition alleged, among others, that the decision had become final
and executory and he is entitled to the issuance of the writ of execution as a
matter of right. Neil filed a motion to dismiss the petition on the ground that it
lacked the required certification against forum shopping.

b.) There was no prior order finding probable cause before the judge
issued the arrest warrant.
May the warrant of arrest be quashed on the grounds cited by Rapido's
counsel? State your reason for each ground. (4%)

a.) Should the court grant Neil's Motion to Dismiss? (3%)

XI.
Despite the issuance of the writ of execution directing Neil to execute the
deed of sale in favor of Aldrin, the former obstinately refused to execute
the deed.
b.) What is Aldrin's remedy? (2%)
IX.

Hades, an American citizen, through a dating website, got acquainted with

Persephone, a Filipina. Hades came to the Philippines and proceeded to Baguio
City where Persephone resides. Hades and Persephone contracted marriage,
solemnized by the Metropolitan Trial Court judge of Makati City. After the wedding,
Hades flew back to California, United States of America, to wind up his business
affairs. On his return to the Philippines, Hades discovered that Persephone had
an illicit affair with Phanes. Immediately, Hades returned to the United States and
was able to obtain a valid divorce decree from the Superior Court of the County of
San Mateo, California, a court of competent jurisdiction against Persephone.
Hades desires to marry Hestia, also a Filipina, whom he met at Baccus Grill in
Pasay City.
a.) As Hades' lawyer, what petition should you file in order that your client
can avoid prosecution for bigamy ifhe desires to marry Hestia? (2%)
b.) In what court should you file the petition? (1%)
c.) What is the essential requisite that you must comply with for the
purpose of establishing jurisdictional facts before the court can hear the
petition? (3%)

X.

An information for murder was filed against Rapido. The RTC judge, after
personally evaluating the prosecutor's resolution, documents and parties'
affidavits submitted by the prosecutor, found probable cause and issued a warrant
of arrest. Rapido's lawyer examined the rollo of the case and found that it only
contained the copy of the information, the submissions of the prosecutor and a
copy of the warrant of arrest. Immediately, Rapido's counsel filed a motion to
quash the arrest warrant for being void, citing as grounds:

The Ombudsman found probable cause to charge with plunder the provincial
governor, vice governor, treasurer, budget officer, and accountant. An Information
for plunder was filed with the Sandiganbayan against the provincial officials
except for the treasurer who was granted immunity when he agreed to cooperate
with the Ombudsman in the prosecution of the case. Immediately, the governor
filed with the Sandiganbayan a petition for certiorari against the Ombudsman
claiming there was grave abuse of discretion in excluding the treasurer from the
Information.
a.) Was the remedy taken by the governor correct? (2%)
b.) Will the writ of mandamus lie to compel the Ombudsman to include
the treasurer in the Information? (3%)
c.) Can the Special Prosecutor move for the discharge of the budget
officer to corroborate the testimony of the treasurer in the course of
presenting its evidence? (2%)

XII.

Paz was awakened by a commotion coming from a condo unit next to hers.
Alarmed, she called up the nearby police station. PO 1 Remus and P02 Romulus
proceeded to the condo unit identified by Paz. PO 1 Remus knocked at the door
and when a man opened the door, POI Remus and his companions introduced
themselves as police officers. The man readily identified himself as Oasis Jung
and gestured to them to come in. Inside, the police officers saw a young lady with
her nose bleeding and face swollen. Asked by P02 Romulus what happened, the
lady responded that she was beaten up by Oasis Jung. The police officers
arrested Oasis Jung and brought him and the young lady back to the police
station. PO1 Remus took the young lady's statement who identified herself as AA.
She narrated that she is a sixteen-year-old high school student; that previous to
the incident, she had sexual intercourse with Oasis Jung at least five times on
different occasions and she was paid P5,000.00 each time and it was the first time
that Oasis Jung physically hurt her. P02 Romulus detained Oasis Jung at the
station's jail. After the inquest proceeding, the public prosecutor filed an
information for Violation of R.A. No. 9262 (The VA WC Law) for physical violence
and five separate informations for violation of R.A. No. 7610 (The Child Abuse
Law). Oasis Jung's lawyer filed a motion to be admitted to bail but the court issued
an order that approval of his bail bond shall be made only after his arraignment.

a.) Did the court properly impose that bail condition? (3%)

At the conclusion of the prosecution's presentation of evidence,

Prosecutor Marilag orally offered the receipt attached to Juan's judicial
affidavit, which the court admitted over the objection of Pedro's lawyer.

Before arraignment, Oasis Jung's lawyer moved to quash the other four
separate informations for violation of the child abuse law invoking the
single larceny rule.

After Pedro's presentation of his evidence, the court rendered judgment

finding him guilty as charged and holding him civilly liable for
P20,000.00.

b.) Should the motion to quash be granted? (2%)

Pedro's lawyer seasonably filed a motion for reconsideration of the

decision asserting that the court erred in awarding the civil liability on the
basis of Juan's judicial affidavit, a documentary evidence which
Prosecutor Marilag failed to orally offer.

c.) After his release from detention on bail, can Oasis Jung still question
the validity of his arrest? (2%)
XIII.

Jaime was convicted for murder by the Regional Trial Court of Davao City in a
decision promulgated on September 30, 2015. On October 5, 2015, Jaime filed a
Motion for New Trial on the ground that errors of law and irregularities prejudicial
to his rights were committed during his trial. On October 7, 2015, the private
prosecutor, with the conformity of the public prosecutor, filed an Opposition to
Jaime's motion. On October 9, 2015, the court granted Jaime's motion. On
October 12, 2015, the public prosecutor filed a motion for reconsideration. The
court issued an Order dated October 16, 2015 denying the public prosecutor's
motion for reconsideration. The public prosecutor received his copy of the order of
denial on October 20, 2015 while the private prosecutor received his copy on
October 26, 2015.

c.) Is the motion for reconsideration meritorious? (2%)

XV.

Manila, for the construction of a mini hydro electric plant. Water Builders failed to
complete the project within the stipulated duration. Super Powers cancelled the
contract. Water Builders filed a request for arbitration with the Construction
Industry Arbitration Commission (CIAC). After due proceedings, CIAC rendered
judgment in favor of Super Powers, Inc. ordering Water Builders to pay the former
P10 million, the full amount of the down payment paid, and P2 million by way of
liquidated damages. Dissatisfied with the CIAC's judgment, Water Builders,
pursuant to the Special Rules of Court on Alternative Dispute Resolution (ADR
Rules) filed with the RTC of Pasay City a petition to vacate the arbitral award.
Super Powers, Inc., in its opposition, moved to dismiss the petition, invoking the
ADR Rules, on the ground of improper venue as neither of the parties were doing
business in Pasay City.

a.) What is the remedy available to the prosecution from the court's order
granting Jaime's motion for new trial? (3%)
b.) In what court and within what period should a remedy be availed of?
(1%)
c.) Who should pursue the remedy? (2%)
XIV.

Pedro was charged with theft for stealing Juan's cellphone

worth P20,000.00. Prosecutor Marilag at the pre-trial submitted the judicial
affidavit of Juan attaching the receipt for the purchase of the cellphone to prove
civil liability. She also submitted the judicial affidavit of Mario, an eyewitness who
narrated therein how Pedro stole Juan's cellphone.
At the trial, Pedro's lawyer objected to the prosecution's use of judicial affidavits of
her witnesses considering the imposable penalty on the offense with which his
client was charged.
a.) Is Pedro's lawyer correct in objecting to the judicial affidavit of Mario?
(2%)
b.) Is Pedro's lawyer correct in objecting to the judicial affidavit of Juan?
(2%)

Water Builders, a construction company based in Makati City, entered into a

construction agreement with Super Powers, Inc., an energy company based in

Should Water Builders' petition be dismissed? (3%)

XVI.

AA, a twelve-year-old girl, while walking alone met BB, a teenage boy who
befriended her. Later, BB brought AA to a nearby shanty where he raped her. The
Information for rape filed against BB states:
"On or about October 30, 2015, in the City of S.P. and within the jurisdiction of this
Honorable Court, the accused, a minor, fifteen (15) years old with lewd design and
by means of force, violence and intimidation, did then and there, willfully,
unlawfully and feloniously had sexual intercourse with AA, a minor, twelve (12)
years old against the latter's will and consent."
At the trial, the prosecutor called to the witness stand AA as his first witness and
manifested that he be allowed to ask leading questions in conducting his direct
examination pursuant to the Rule on the Examination of a Child Witness. BB's
counsel objected on the ground that the prosecutor has not conducted a

competency examination on the witness, a requirement before the rule cited can
be applied in the case.

a.) Is BB's counsel correct? (3%)

In order to obviate the counsel's argument on the competency of AA as
prosecution witness, the judge motu proprio conducted his voir dire
examination on AA.
b.) Was the action taken by the judge proper? (2%)
After the prosecution had rested its case, BB' s counsel filed with leave a
demurrer to evidence, seeking the dismissal of the case on the ground
that the prosecutor failed to present any evidence on BB' s minority as
alleged in the Information.
c.) Should the court grant the demurrer? (3%)
XVII.

Hercules was walking near a police station when a police officer signaled for him
to approach. As soon as Hercules came near, the police officer frisked him but the
latter found no contraband. The police officer told Hercules to get inside the police
station. Inside the police station, Hercules asked the police officer, "Sir, may
problema po ba?" Instead of replying, the police officer locked up Hercules inside
the police station jail.

Immediately, Mayumi filed with the RTC, a petition for the issuance of the writ of
amparo against Mapusok and APKA. ALMA also filed a petition for the issuance of
the writ of amparo with the Court of Appeals against Mapusok and APKA.
Respondents Mapusok and APKA, in their Return filed with the RTC, raised
among their defenses that they are not agents of the State; hence, cannot be
impleaded as respondents in an amparo petition.
a.) Is their defense tenable? (3%)
Respondents Mapusok and APKA, in their Return filed with the Court of
Appeals, raised as their defense that the petition should be dismissed on
the ground that ALMA cannot file the petition because of the earlier
petition filed by Mayumi with the RTC.

a.) What is the remedy available to Hercules to secure his immediate

release from detention? (2%)

b.) Are respondents correct in raising their defense? (3%)

b.) If Hercules filed with the Ombudsman a complaint for warrantless

search, as counsel for the police officer, what defense will you raise for
the dismissal of the complaint? (3%)

c.) Mayumi later filed separate criminal and civil actions against
Mapusok. How will the cases affect the amparo petition she earlier filed?
(1%)

c.) If Hercules opts to file a civil action against the police officer, will he
have a cause of action? (3%)
XVIII.

operations of Oro Negro Mining in the mountain. ALMA members picketed daily at
the entrance of the mining site blocking the ingress and egress of trucks and
equipment of Oro Negro, hampering its operations. Masigasig had an altercation
with Mapusok arising from the complaint of the mining engineer of Oro Negro that
one of their trucks was destroyed by ALMA members. Mapusok is the leader of
the Association of Peace Keepers of Ahohoy (APKA), a civilian volunteer
organization serving as auxiliary force of the local police to maintain peace and
order in the area. Subsequently, Masigasig disappeared. Mayumi, the wife of
Masigasig, and the members of ALMA searched for Masigasig, but all their efforts
proved futile. Mapagmatyag, a member of ALMA, learned from Maingay, a
member of APKA, during their binge drinking that Masigasig was abducted by
other members of APKA, on order of Mapusok. Mayumi and ALMA sought the
assistance of the local police to search for Masigasig, but they refused to extend
their cooperation.

The residents of Mt. Ahohoy, headed by Masigasig, formed a nongovernmental

organization - Alyansa Laban sa Minahan sa Ahohoy (ALMA) to protest the mining

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