2023 Syllabus-Based EREVIEWER v2 Preview

Syllabus-based eReviewer
for the 2023 Bar

Version 2 with Bar Chair Case Digests
1
Syllabus-based eReviewer v2 for the 2023 Bar with Bar Chair Case Digests
Table of Contents
3. Taxation The fundamental conception in other words is that it is a supreme
law to which all other laws must conform and in accordance with
Political Law 2 Relevance of the Declaration of Principles and State which all private rights must be determined and all public
Policies authority administered.
Commercial Law 19 The Constitution of the Philippines is
Dynamics Among the Branches of Government
Taxation Law 31 a) Written — whose precepts are embodied in one or a set
1. Separation of Powers of documents;
Civil Law 46 b) Conventional — enacted, formally struck o at a de nite
2. System of Checks and Balances
time and place following a conscious and deliberate e ort
Labor Law 59 3. Delegation of Powers taken by a constituent body or ruler; and
c) Rigid — amended only by a formal and usually di cult
Criminal Law 62 State Immunity
process.
Remedial Law 65 The National Territory

re Doctrine of Constitutional
Manila Prince Hotel v. GSIS
Supremacy
Ethics 68 A Nature of a Constitution
Under the doctrine of constitutional supremacy, if a law or
A constitution is a system of fundamental laws for the
Political Law governance and administration of a nation. It is supreme,
contract violates any norm of the constitution that law or contract
whether promulgated by the legislative or by the executive branch or
imperious, absolute and unalterable except by the authority
entered into by private persons for private purposes is null and void
I Preliminary Concepts from which it emanates.
and without any force and e ect. Thus, since the Constitution is the
It has been de ned as the fundamental and paramount law of the fundamental, paramount and supreme law of the nation, it is
Nature of a Constitution nation. It deemed written in every statute and contract.
The Philippines as a State a) prescribes the permanent framework of a system of
government, 1 Parts
Fundamental Powers of the State
b) assigns to the di erent departments their respective
1) Constitution of Liberty — consists of a series of prescriptions
1. Police Power powers and duties, and
setting forth the fundamental civil and political rights of the
c) establishes certain xed principles on which government is citizens and imposing limitations on the powers of
2. Eminent Domain
founded. government as a means of securing the enjoyment of those
rights;
eCodal+Pro by RGL 2 of 74
2) Constitution of Government — series of provisions of self-executing, the legislature would have the power to ignore and measures to encourage the formation and operation of enterprises
outlining the organization of the government, enumerating its practically nullify the mandate of the fundamental law. fully owned by Filipinos, as in the rst paragraph, and the State still
powers, laying down certain rules relative to its administration, needs legislation to regulate and exercise authority over foreign
In self-executing constitutional provisions, the legislature may still
and de ning the electorate; and investments within its national jurisdiction, as in the third
enact legislation to
paragraph, then a fortiori, by the same logic, the second paragraph
3) Constitution of Sovereignty — consists of the provisions
1. facilitate the exercise of powers directly granted by the can only be self-executing as it does not by its language require any
pointing out the mode or procedure in accordance with which
constitution, legislation in order to give preference to quali ed Filipinos in the
formal changes in the fundamental law may be brought about.
2. further the operation of such a provision, grant of rights, privileges and concessions covering the national
economy and patrimony.
2 Manner of Interpretation 3. prescribe a practice to be used for its enforcement,
A constitutional provision may be self-executing in
4. provide a convenient remedy for the protection of the
Manila Prince Hotel v. GSIS rights secured or the determination thereof, or
one part and non-self-executing in another.
A provision which lays down a general principle, such as those 5. place reasonable safeguards around the exercise of the right.
found in Art. II of the 1987 Constitution, is usually not
The mere fact that legislation may supplement and add to or 3 Process of Change
self-executing. But a provision which is complete in itself and
prescribe a penalty for the violation of a self-executing
becomes operative without the aid of supplementary or enabling
constitutional provision does not render such a provision ine ective §1 Art XVII. Any amendment to, or revision of, this Constitution may
legislation, or that which supplies su cient rule by means of which
in the absence of such legislation. The omission from a constitution be proposed by:
the right it grants may be enjoyed or protected, is self-executing.
of any express provision for a remedy for enforcing a right or liability
Thus, a constitutional provision is self-executing 1. The Congress, upon a vote of three-fourths of all its
is not necessarily an indication that it was not intended to be
Members; or
1. if the nature and extent of the right conferred and self-executing. The rule is that a self-executing provision of the
constitution does not necessarily exhaust legislative power on 2. A constitutional convention.
2. the liability imposed are xed by the constitution itself,
the subject, but any legislation must be in harmony with the §2. Amendments to this Constitution may likewise be directly
3. so that they can be determined by an examination and constitution, further the exercise of constitutional right and make it
proposed by the people through initiative upon a petition of
construction of its terms, and more available. Subsequent legislation however does not necessarily
mean that the subject constitutional provision is not, by itself, fully a. at least twelve per centum of the total number of
4. there is no language indicating that the subject is referred to
enforceable. registered voters,
the legislature for action.
Respondents also argue that the non-self-executing nature of Sec. b. of which every legislative district must be represented by at
Unless it is expressly provided that a legislative act is necessary to
10, second par., of Art. XII is implied from the tenor of the rst and least three per centum of the registered voters therein.
enforce a constitutional mandate, the presumption now is that
all provisions of the constitution are self-executing. If the third paragraphs of the same section which undoubtedly are not No amendment shall be authorized within ve years following the
constitutional provisions are treated as requiring legislation instead self-executing. The argument is awed. If the rst and third rati cation of this Constitution nor oftener than once every ve years
paragraphs are not self-executing because Congress is still to enact thereafter.
§3. The Congress may, the principle of separation of powers or the system of Bangsamoro juridical entity shall be associative characterized by
checks-and-balances. shared authority and responsibility with a structure of governance
a. by a vote of two-thirds of all its Members, call a
constitutional convention, OR There is also revision if the change based on executive, legislative, judicial and administrative
institutions with de ned powers and functions in the
b. by a majority vote of all its Members, submit to the b. alters the substantial entirety of the constitution, as comprehensive compact.
electorate the question of calling such a convention. when the change a ects substantial provisions of the
constitution. An association is formed when two states of unequal power
§4. Any amendment to, or revision of, this Constitution shall be valid voluntarily establish durable links. In the basic model, one state, the
when rati ed by a majority of the votes cast in a plebiscite A two-part test is thus used: the quantitative test and the associate, delegates certain responsibilities to the other, the
which shall be held not earlier than sixty days nor later than qualitative test. The quantitative test examines only the number principal, while maintaining its international status as a state. Free
ninety days of provisions a ected and does not consider the degree of the associations represent a middle ground between integration and
change. independence. In international practice, the "associated state"
a. after the approval of such amendment or revision; (Constituent
Assembly or Constitutional Convention) OR The qualitative test inquires into the qualitative e ects of the arrangement has usually been used as a transitional device of former
proposed change in the constitution. The main inquiry is whether colonies on their way to full independence.
b. after the certi cation by the Comelec of the su ciency of
the petition. (People’s Initiative) the change will "accomplish such far reaching changes in the nature The MOA-AD contains many provisions which are consistent with
of our basic governmental plan as to amount to a revision." the international legal concept of association, speci cally the
Lambino v. Comelec following:
1. the BJE's capacity to enter into economic and trade
The Initiative Petition Does Not Comply with Section 2,
B The Philippines as a State relations with foreign countries,
Article XVII of the Constitution on Direct Proposal by the
People 2. the commitment of the Central Government to ensure the
BJE's participation in meetings and events in the ASEAN
The framers of the Constitution intended that the "draft of the 1 Elements
and the specialized UN agencies, and
proposed constitutional amendment" should be "ready and
shown" to the people "before" they sign such proposal. 3. the continuing responsibility of the Central Government
The Province of North Cotabato v. GRP over external defense.
The Initiative Violates Section 2, Article XVII Disallowing
Revision through Initiatives Moreover, the BJE's right to participate in Philippine o cial
In general, the objections against the MOA-AD center on the extent
missions bearing on negotiation of border agreements,
A people's initiative to change the Constitution applies ONLY to of the powers conceded therein to the BJE. Petitioners assert that the
environmental protection, and sharing of revenues pertaining to the
an amendment of the Constitution and NOT to its revision. powers granted to the BJE exceed those granted to any local
bodies of water adjacent to or between the islands forming part of
Revision broadly implies a change that government under present laws, and even go beyond those of the
the ancestral domain, resembles the right of the governments of
present ARMM.
a. alters a basic principle in the constitution, like altering FSM and the Marshall Islands to be consulted by the U.S.
The relationship between the Central Government and the
government on any foreign a airs matter a ecting them. which has betrayed itself by its use of the concept of association - unilateral secession) arises in only the most extreme of
runs counter to the national sovereignty and territorial cases and, even then, under carefully de ned
These provisions of the MOA indicate, among other things, that the
integrity of the Republic. circumstances, such as
Parties aimed to vest in the BJE the status of an associated state or, at
any rate, a status closely approximating it. The de ning concept underlying the relationship between the a) where a people is under colonial rule,
national government and the BJE being itself contrary to the present
The concept of association is NOT recognized under the b) is subject to foreign domination or exploitation
Constitution, it is not surprising that many of the speci c
present Constitution outside a colonial context, and
provisions of the MOA-AD on the formation and powers of the
No province, city, or municipality, not even the ARMM, is BJE are in con ict with the Constitution and the laws. c) — less de nitely but asserted by a number of
recognized under our laws as having an "associative" relationship commentators — is blocked from the meaningful
with the national government. Indeed, the concept implies powers exercise of its right to internal self-determination.
that go beyond anything ever granted by the Constitution to any
Distinction Between Internal and External
local or regional government. It also implies the recognition of the 2
Self-Determination
associated entity as a state. The Constitution, however, does not C Fundamental Powers of the State
contemplate any state in this jurisdiction other than the Philippine
State, much less does it provide for a transitory status that aims to Brie y
The Province of North Cotabato v. GRP
prepare any part of Philippine territory for independence. 1) Police Power regulates liberty and property for the
The BJE is a far more powerful entity than the autonomous International law has long recognized the right to self-determination promotion of the general welfare.
region recognized in the Constitution. of "peoples," understood not merely as the entire population of a
2) Eminent Domain enables the State to forcibly acquire
State but also a portion thereof.
It is not merely an expanded version of the ARMM, the status of its property, upon payment of just compensation, for some
relationship with the national government being fundamentally The people's right to self-determination should not, however, be intended public use.
di erent from that of the ARMM. Indeed, BJE is a state in all but understood as extending to a unilateral right of secession. A
3) Taxation is the ability to demand from the members of
name as it meets the criteria of a state laid down in the Montevideo distinction should be made between the right of internal and
society their proportionate share or contribution in the
Convention, namely, external self-determination.
maintenance of the government.
1. a permanent population, 1) The right to self-determination of a people is normally
Similarities
ful lled through internal self-determination — a
2. a de ned territory, 1) Inherent in the State and may be exercised without express
people's pursuit of its political, economic, social and
3. a government, and cultural development within the framework of an existing constitutional grant.
4. a capacity to enter into relations with other states. state. 2) Not only necessary but indispensable. The State cannot
2) A right to external self-determination (which in this continue or be e ective unless it is able to exercise them.
Even assuming arguendo that the MOA-AD would not necessarily
sever any portion of Philippine territory, the spirit animating it - case potentially takes the form of the assertion of a right to 3) Methods by which the State interferes with private rights.
4) Presuppose an equivalent compensation for the private rights In negative terms, it is that inherent and plenary power in the 2. By virtue of valid delegation, may be exercised by:
interfered with. State which enables it to prohibit all things hurtful to the
a. The President;
comfort, safety and welfare of society. (Agustin v. Edu)
5) Exercised primarily by the legislature.
b. Administrative boards;
3. The most essential, insistent and the least limitable of
Eminent powers, extending as it does “to all the great public needs.” c. Lawmaking bodies on all municipal levels, including the
Police Power Taxation
Domain barangay.
4. May not be bargained away through the medium of contract
Regulates Both liberty Only property rights or even a treaty. The impairment clause must yield to the 3. Quasi-legislative power — authority delegated by the
and property police power whenever the contract deals with a subject lawmaking body to the administrative body to adopt rules and
a ecting the public welfare. regulations intended to carry out the provisions of the law and
Exercised by Government Government Government implement legislative policy.
5. May sometimes use the taxing power as an implement for
and private
the attainment of a legitimate police objective. 4. Municipal governments exercise quasi-legislative powers under
Property Destroyed Intended for public use or the general welfare clause, Sec 16, LGC.
a. In Lutz v. Araneta, the SC sustained as a legitimate
taken because it is purpose and is therefore exercise of the police power the imposition of a special tax 5. No mandamus is available to coerce the exercise of police
noxious wholesome on sugar producers for the purpose of creating a special power.
fund to be used for the rehabilitation of the sugar 6. The question of validity of legislation as determined by the
Compensation Intangible A full and fair equivalent of the
industry. criterion of their conformity to the Constitution is
altruistic property expropriated or
feeling that he protection and public b. In Gerochi v. DOE, the Universal Charge was considered justiciable.
has improvements for the taxes paid as an exaction in the exercise of the State’s police power,
contributed to imposed to ensure the viability of the country’s electric Evasco, Jr. v. Montañez 2018
the general power industry.
Ordinance No. 092-2000, which regulates the construction and
welfare 6. Power of eminent domain could also be used as an implement. installation of building and other structures such as
billboards within Davao City, is an exercise of police power. This
7. When the conditions so demand as determined by the
direct and speci c grant takes precedence over requirements set
legislature, property rights must bow to the primacy of
1 Police Power forth in another law of general application, in this case the National
police power because property rights, though sheltered by
Building Code.
due process, must yield to general welfare. (Carlos Superdrug v.
1. Power of promoting the public welfare by restraining and
regulating the use of liberty and property. DSWD) Even if the National Building Code imposes minimum
requirements as to the construction and regulation of billboards,
2. In a positive sense, it is the power to prescribe regulations to Exercise the city government may impose stricter limitations because
promote the health, morals, peace, education, good order or 1. Lodged primarily in the national legislature. its police power to do so originates from its charter and not
safety, and general welfare of the people.
from the National Building Code. ii) The means employed are reasonably necessary for 6. In the landmark case of Lozano v. Martinez, the SC upheld
the accomplishment of the purpose and not unduly the validity of BP 22 as it preserves the integrity of the
oppressive upon individuals. banking system by preventing worthless checks from
City of Cagayan De Oro v. ooding the system.
2018 2) Strict Scrutiny Test. — Focus is on the presence of
Cagayan Electric Power & Light compelling, rather than substantial, government interest and 7. In Department of Education v. San Diego, a regulation
The purpose of an imposition will determine its nature as either a on the absence of less restrictive means for achieving that disqualifying any person who has failed the NMAT three
tax or a fee. If the purpose is primarily revenue, or if revenue is at interest. times from taking it again was reinstated by the SC as the
least one of the real and substantial purposes, then the exaction is measure was intended to protect the patients.
Lawful Subject
properly classi ed as an exercise of the power to tax. On the other 8. In Sangalang v. IAC, the SC sustained the opening of two
hand, if the purpose is primarily to regulate, then it is deemed an 1. Subject of the measure is within the scope of police power, i.e.
erstwhile private roads due to the demands of the common
exercise of police power in the form of a fee, even though revenue the activity or property sought to be regulated a ects the
good, namely, tra c decongestion and public
is incidentally generated. In other words, if generation of revenue public welfare.
convenience.
is the primary purpose, the imposition is a tax but, if 2. In Taxicab Operators of Metro Manila v. Board of
9. In Del Rosario v. Bengzon, the Generics Act was sustained to
regulation is the primary purpose, the imposition is properly Transportation, an administrative regulation phasing out
“promote and require the use of generic drug products
categorized as a regulatory fee. taxicabs more than six years old was held a valid police measure
that are therapeutically equivalent to their brand-name
to protect the riding public and promote their comfort and
counterparts.”
Tests convenience.
10. In Telecommunications and Broadcast Attorneys of the
1) Rational Basis Test. — 3. In Velasco v. Villegas, an ordinance prohibiting barber shop
Philippines v. COMELEC, Sec 92 of BP Blg 881 requiring
a) Applied mainly in analysis of equal protection operators from rendering massage services in a separate room
radio and television stations to give free airtime to respondent
challenges; was likewise sustained, to prevent immorality and enable the
for broadcasting information regarding the candidates in the
authorities to properly assess license fees.
b) Laws and ordinances are upheld if they rationally 1998 elections was validated.
further a legitimate governmental interest. Under 4. In Bautista v. Junio, to conserve energy, prohibition of heavy
11. In Social Justice Society v. Atienza, a zoning ordinance of the
intermediate review, governmental interest is extensively and extra-heavy vehicles from using public streets on weekends
City of Manila reclassifying “certain areas of the city from
examined and the availability of less restrictive measures is and legal holidays was sustained.
industrial to commercial” was upheld by the SC citing its
considered. 5. In Tio v. Videogram Regulatory Board, the creation of the implementation for the protection and bene t of the
c) Two requisites must concur: VRB was sustained “to answer the need for regulating the residents.
video industry, particularly because of the rampant lm
i) The interests of the public generally, as 12. In Ople v. Torres, an administrative order establishing the
piracy, the agrant violation of intellectual property rights,
distinguished from those of a particular class, require National Computerized Identi cation Reference System for
and the proliferation of pornographic video tapes.”
its exercise; and the expressed purpose of facilitating transactions with the
government, particularly those providing basic services and
social security bene ts was struck down as an invasion of

d. In OSG v. Ayala Land, Inc., the SC rejected petitioner’s 2. In cases of delegated authority, the judiciary has assumed the
people’s privacy.
contention that malls, inasmuch as they are required by power to inquire whether the authority conferred has been
13. However, in Kilusang Mayo Uno v. Director General, NEDA, the National Building Code to provide parking spaces for correctly or properly exercised. This involves looking into the
the Court upheld EO 420 prescribing for all government their customers, should provide such for free. necessity of the expropriation.
agencies and GOCCs a “uniform data collection and format
3. The SC has invariably applied certain standards for judicial Stages
for their existing ID systems” for their respective employees. 1. Determination of the validity of the expropriation. Necessity
review:
of an expropriation is a justiciable question.
Lawful Means Laws dealing with the freedom of the mind
Strict scrutiny
1. Both ends and means must be legitimate. Otherwise, the or restricting the political process. 2. Determination of just compensation.
police measure shall be struck down as an arbitrary intrusion
Rational basis Private Property
into private rights. Review of economic legislation
standard 1. Anything that can come under the dominion of man,
2. There should be reasonable relation between the means including: (1) real and personal, (2) tangible and intangible
and the end. Heightened or Evaluating classi cations based on gender
properties. Except money and choses in action.
immediate scrutiny and legitimacy
a. In Ynot v. IAC, an EO prohibiting the transport of 2. Property already devoted to public use is still subject to
carabaos and carabeef across provincial boundaries Overbreadth A statute needlessly restrains even expropriation, provided this is done (1) directly by the
without government clearance, was invalidated as the doctrine constitutionally guaranteed rights legislature, or (2) under a speci c grant of authority to the
purpose of indiscriminate slaughter was not satisfactorily delegate.
met by the means employed. Void-for-vagueness A penal statute encroaches upon the
doctrine freedom of speech. 3. In NHA v. DARAB, land, whether tenanted or not, acquired
b. A law limiting the capacity of common carriers, or of by the NHA for its housing and resettlement programs are
theaters as in the case of People v. Chan, is valid as this exempt from land reform under PD 1472.
4. In ne, the means employed for the accomplishment of the
would be a reasonable method for promoting the comfort,
police objective must pass the test of reasonableness and, 4. Services are considered embraced in the concept of property.
convenience and safety of the customers.
speci cally, conform to the safeguards embodied in the Bill of
c. In City Government of QC v. Ericta, in invalidating an a. In Republic v. PLDT, the SC upheld the right of the
Rights for the protection of private rights.
ordinance, the SC said “there is no reasonable relation Bureau of Telecommunications to demand the
interconnection between the Government Telephone
between the setting aside of at least 6% of the total area of 2 Eminent Domain
private cemeteries for charity burial grounds of deceased System and PLDT, so that the former could make use of
paupers and the promotion of health, morals, good order, the lines and facilities of PLDT.
Necessity of Exercise
safety, or the general welfare of the people. The ordinance 1. Essentially political in nature when exercised by the b. Similarly, in PLDT v. NTC, the petitioner was required to
is actually a taking without just compensation.” legislature. interconnect with a private telecommunications company.
PNOC Alternative Fuels v. NGCP 2019 d. In NPC v. Ileto, the prohibition imposed by the National Transmission Corp. v. Sps Taglao 2020
transmission lines, i.e. construction of any improvements
Republic v. East Silverlane Realty Development Corp. held True, an easement of a right of way transmits no rights except the
or planting of any trees that exceed 3 meters within the
that when the subject property is classi ed by the government as an easement itself, and the respondents would retain full ownership of
aerial right of way, clearly interferes with the
industrial zone, the subject property therein had been declared the property taken. Nonetheless, the acquisition of such easement is
landowners’ right to possess and enjoy their properties.
patrimonial. Further, it is apparent from R.A. No. 10516 and its not gratis. The limitations on the use of the property taken for an
IRR that the industrial estate is being owned, managed, and 2. Not every taking is compensable, as it may be justi ed inde nite period would deprive its owner of the normal use thereof.
operated by the State, not in its sovereign capacity, but rather in its under the police power.
NPC v. Sps Aoque citing NPC v. Tiangco held that if the
private capacity. It is apparent from P.D. No. 949, as amended by a. Thus, losses sustained are in the nature of damnum easement is intended to perpetually or inde nitely deprive the
R.A. No. 10516, that the Petrochemical Industrial Park is absque injuria. owner of his proprietary rights, then the owner should be
intended and accordingly devoted by law as a commercial and
b. This rule is only valid as long as the prejudice su ered by compensated for the monetary equivalent of the land.
business venture.
an individual is shared in common with the rest as was In this case, considering that the installation of the power lines
Thus, NGCP has the authority under Section 4 of R.A. No. illustrated in Richards v. Washington Terminal. would de nitely deprive Spouses Taglao of the normal use of their
9511 to expropriate the subject property.
3. Compensable taking includes destruction, restriction, property, they are entitled to the payment of a just compensation.
diminution, or interruption of the rights of ownership or of
Taking
the common and necessary use and enjoyment of the property Public use
1. May include trespass without actual eviction of the owner, in a lawful manner, lessening or destroying its value. 1. Any use directly available to the general public as a matter of
material impairment of the value of the property or prevention
4. Requisites of Taking in Eminent Domain (according to right and not merely of forbearance or accommodation.
of the ordinary uses for which the property was intended.
Republic v. Castellvi) 2. There will also be public use involved even if the expropriated
a. In Ayala de Roxas v. City of Manila, the imposition of an
a. The expropriator must enter a private property; property is not actually acquired by the government but is
easement over a 3-meter strip of the plainti ’s property
merely devoted to public services administered by
could not be legally done without payment of just b. The entry must be for more than a momentary period;
privately-owned public utilities such as telephone or light
compensation. c. The entry must be under warrant or color of legal companies.
b. In People v. Fajardo, a municipal ordinance prohibiting authority;
3. Important thing is that any member of the general public can
construction of any building that would destroy the view d. The property must be devoted to public use or demand, for free or for a fee, the right to use the converted
of the plaza from the highway was considered a taking otherwise informally appropriated or injuriously a ected; property for his direct and personal convenience.
under the power of eminent domain.
e. The utilization of the property for public use must be in 4. Broadened to include those that will redound to the indirect
c. The right-of-way easement, resulting in the restriction or such a way as to oust the owner and deprive him of advantage or bene t of the public.
limitation on property rights over the land traversed by bene cial enjoyment of the property.
transmission lines is also an exercise of expropriation, as
MCIAA v. Lozada, et al. 2010 En Banc
in NPC v. Aguirre-Paderanga.
We now expressly hold that the taking of private property, 3. In NPC v. Pobre, the expropriator is not allowed to unilaterally emergency, and in the exercise of its police power, to temporarily
consequent to the Government's exercise of its power of eminent withdraw because damages may have already been caused to take over the operation of any business affected with public
domain, is always subject to the condition that the property be the property. interest.
devoted to the speci c public purpose for which it was taken.
The term "national emergency" was de ned to include threat
Corollarily, if this particular purpose or intent is not initiated NTC v. Bermuda Development 2019
from external aggression, calamities or national disasters, but
or not at all pursued, and is peremptorily abandoned, then
A case led by a landowner for recovery of possession or not strikes "unless it is of such proportion that would paralyze
the former owners, if they so desire, may seek the reversion of
ejectment against a public utility corporation, which has occupied government service." The temporary takeover by the government
the property, subject to the return of the amount of just
the land belonging to the former without prior acquisition of title extends only to the operation of the business and not to the
compensation received. In such a case, the exercise of the power of
thereto by negotiated purchase or expropriation proceedings, will ownership thereof. As such the government is not required to
eminent domain has become improper for lack of the required
not prosper. compensate the private entity-owner of the said business as there
factual justi cation.
is no transfer of ownership. The private entity-owner a ected
The proper recourse is for the ejectment court: cannot, likewise, claim just compensation as the temporary takeover
Remedy of Dispossessed Owner by the government is in exercise of its police power and not of
1) to dismiss the case without prejudice to the landowner
1. Owner’s failure to question for a long period of time the ling the proper action for recovery of just compensation its power of eminent domain.
government’s failure to institute expropriation proceedings and consequential damages; or Thus, requiring the government to pay reasonable
constitutes a waiver of his right to regain possession of his
2) to dismiss the case and direct the public utility corporation compensation for the reasonable use of the property pursuant
property. His only remedy is an action for payment of just
to institute the proper expropriation or to the operation of the business contravenes the Constitution.
compensation and may not sue for ejectment.
condemnation proceedings and to pay the just
2. Amount to be Deposited compensation and consequential damages assessed therein;
a. Rule 67 — an amount equivalent to the full assessed or Manila Memorial Park v.
2013 En Banc
value of the property in order for the court to issue a writ Secretary of the DSWD
3) to continue with the case as if it were an
of possession; expropriation case and determine the just compensation In the exercise of police power, xxxx examples of these regulations
b. If the expropriator is an LGU, the amount to be deposited and consequential damages pursuant to Rule 67, if the are
is only 15% of the assessed value of the property. ejectment court has jurisdiction over the value of the
1) property condemned for being noxious or intended for
subject land.
c. In RA 8974, if the purpose of the expropriation is to noxious purposes;
implement a national government infrastructure project, 2) zoning ordinances prohibiting the use of property for
Distinguished from police power
what needs to be done is not a deposit but payment of purposes injurious to the health, morals or safety of the
BIR Zonal valuation of the property. This amount community.
Agan, Jr. v. PIATCO
deposited or paid is NOT the just compensation.
Sec 17 Art XII pertains to the right of the State in times of national On the other hand, in the exercise of the power of eminent
imposition, and not a charge on property, and is therefore not

domain, it is a settled rule that the acquisition of title or total health care to PWDs are reasonably related to its accomplishment,
an imposition from which petitioner is exempt.
destruction of the property is not essential for “taking” under the and are not oppressive, considering that as a form of
power of eminent domain to be present. Examples of these include reimbursement, the discount extended to PWDs in the purchase of Purposes
medicine can be claimed by the establishments as allowable tax
1) establishment of easements such as where the landowner is 1) Revenue – The purpose of taxation is to provide funds or
deductions.
perpetually deprived of his proprietary rights because of the property with which the State promotes the general welfare and
hazards posed by electric transmission lines constructed protection of its citizens. Raising the revenues is the principal
above his property or object of taxation.
3 Taxation
2) the compelled interconnection of the telephone system 2) Non-Revenue
between the government and a private company.
1. Taxes are the enforced proportional contributions from persons a) Regulation – Taxes may also be imposed for a regulatory
and property, levied by the State by virtue of its sovereignty, for the purpose as for example, in the promotion, rehabilitation, and
support of government and for all public needs. stabilization of industry which is a ected with public interest.
People v. Fajardo
2. Obligation to pay taxes is not based on contract. b) Promotion of General Welfare – If objectives and methods
A regulation which substantially deprives an owner of all 3. Except only in the case of poll taxes (Sec 20 Art III), nonpayment are alike constitutionally valid, no reason is seen why the state
bene cial use of his property is con scation and is a of a tax may be the subject of criminal prosecution and may not levy taxes to raise funds for their prosecution and
deprivation. punishment. attainment. Taxation may be made to implement the state’s
police power.
4. Taxes are the nation’s lifeblood through which government
agencies continue to operate and with which the State discharges c) Reduction of Social Inequality – made possible through
Drugstore Association v. National
2016 its functions for the welfare of its constituents. progressive system of taxation where the objective is to prevent
Council on Disability Affairs
the undue concentration of wealth in the hands of few
5. Taxes = levied to raise revenues; Licenses = imposed for
The PWD mandatory discount on the purchase of medicine is individuals (that is why, the bigger the income of the person,
regulatory purpose.
supported by a valid objective or purpose. It has a valid subject the bigger the income tax).
considering that the concept of public use is no longer con ned to 6. Imposition of a vehicle registration fee is not an exercise of police
d) Promote Economic Growth – in the realm of tax
the traditional notion of use by the public, but held synonymous power, but of taxation, as its main purpose is to raise funds for the
exemptions and tax reliefs, the purpose of taxation (the power
with public interest, public bene t, public welfare, and public construction and maintenance of highways.
to tax being the power also not to tax) is to grant incentives or
convenience. As in the case of senior citizens, the discount privilege 7. On the other hand, the Universal Charge is not a tax as its primary exemptions in order to encourage investments and thereby
to which the PWDs are entitled is actually a bene t enjoyed by the purpose is to ensure the viability of the country’s electric power promote the country’s economic growth.
general public to which these citizens belong. The means employed industry.
in invoking the active participation of the private sector, in order to e) Protectionism – in some important sectors of the economy,
★ In Angeles University Foundation v. City of Angeles, SC held taxes sometimes provide protection to local industries like
achieve the purpose or objective of the law, is reasonably and directly
that the payment of building permit fee is a regulatory protective tari and customs duties.
related. Also, the means employed to provide a fair, just and quality
and other duties or imposts within the framework of the

Characteristics d) The classi cation applies equally well to all those
national development program of the Government.
belonging to the same class.
1) Inherent – the power to tax, an inherent prerogative, has to be
3. Pursuant to direct authority conferred by Sec 5 Art X of the
availed of to assure the performance of vital state functions. 3. Equitable taxation connotes that taxes should be apportioned
Constitution, local legislative bodies may also exercise the power of
among the people according to their capacity to pay.
2) Legislative – taxing power is peculiarly and exclusively legislative taxation.
in character and remains undiminished in the legislative in Double Taxation
4. GR: There must be a law granting an LGU to lawfully impose a
character.
tax. Not applicable where what is involved is the regulatory power 1. Not constitutionally prohibited.
3) Constitutionally limited – the power to tax is an attribute of of the LGU which is expressly accompanied by the taxing power. 2. Occurs when additional taxes are laid on the same subject by the
sovereignty. It is the strongest of all the powers of the government.
same taxing jurisdiction during the same taxing period and for the
The Constitution sets forth such limits. Due Process and Taxation
same purpose.
1. Taxes should not be con scatory, except when they are intended as
Two opposing views, but equally correct
an implement of police power. 3. Despite the lack of prohibition, it will not be allowed if it violates
Taxation as including the Taxation as not including the the equal protection clause. (Sec 1 Art III)
2. Due process does not require previous notice and hearing before a
power to destroy power to destroy law prescribing xed or speci c taxes on certain articles may be Public Purpose
enacted. 1. Revenues received from the imposition of taxes or levies cannot be
Proferred by Chief Justice John Refuted later by Justice Holmes
3. Where the tax to be collected is based on the value of the taxable used for purely private purposes or for the exclusive bene t of
Marshall of the US SC
property, the taxpayer is entitled to be noti ed of the assessment private persons.
proceedings and to be heard therein on the correct valuation. ★ In Planters Products Inc v. Fertiphil Corporation, the Court
If taxation is used as implement If taxation is used solely for
of police power raising revenues declared that a tax levy on the sale of fertilizers for purposes of
Equal Protection and Taxation
bene ting a private corporation, Philippine Planters Inc., is
1. Sec 28(1) Art VI, the rule of taxation shall be uniform and
Exercise invalid. It may not be justi ed even as a valid exercise of police
equitable. The Congress shall evolve a progressive system of
power.
1. Inherent in the State, primarily vested in the Legislature. taxation.
2. May be delegated to the President pursuant to Sec 28(2) Art VI 2. Uniformity does not forfend classi cation as long as: Tax Exemptions
of the Constitution. 1. Construed strongly against the claimant.
a) The standards that are used therefor are substantial and
★ SECTION 28. (2) The Congress may, by law, authorize the not arbitrary; 2. Sec 28(3) Art VI. Charitable institutions, churches and
President to x within speci ed limits, and subject to such parsonages or convents appurtenant thereto, mosques, non-pro t
b) The categorization is germane to achieve the legislative
limitations and restrictions as it may impose, tari rates, cemeteries, and all lands, buildings, and improvements, actually,
purpose;
import and export quotas, tonnage and wharfage dues, directly, and exclusively used for religious, charitable, or
c) The law applies, all things being equal, to both present educational purposes shall be exempt from taxation.
and future conditions; and
★ However, in Lladoc v. Commissioner of Internal Revenue, a ★ In PAGCOR v. BIR, SC rejected petitioner’s assertion that the Relevance of the Declaration of
D
donation of P10K for the construction of a church was subject removal of its statutory exemption from the payment of Principles and State Policies
to donee’s tax as it was not an ad valorem tax on the church corporate income tax is violative of the equal protection and
but an excise tax imposed on the priest for the exercise of the non-impairment clauses. The State as Parens Patriae
privilege to accept the donation.
8. Sec 11 Art XII. xxxx Neither shall any such franchise or right be
★ In Lung Center of the Philippines v. Quezon City, those granted except under the condition that it shall be subject to Maynilad v. SENR 2019 En Banc Hernando, J
portions leased to private properties and individuals are not amendment, alteration, or repeal by the Congress when the Hand-in-hand with police power in the promotion of general
exempt from real property taxes. common good so requires. welfare is the doctrine of parens patriae.
3. Sec 4(3) Art XIV. All revenues and assets of non-stock, ★ In MERALCO v. Province of Laguna, the Court held that a Under the doctrine, the state has the sovereign power of
non-pro t educational institutions used actually, directly, and franchise partakes the nature of a grant, which is beyond the guardianship over persons of disability, and in the execution of the
exclusively for educational purposes shall be exempt from taxes and purview of the non-impairment clause. doctrine the legislature is possessed of inherent power to provide
duties. xxxx protection to persons non sui juris and to make and enforce rules
Other Constitutional Limitations
4. Sec 4(4) Art XIV. Subject to conditions prescribed by law, all and regulations as it deems proper for the management of their
Sec 29 Art VI.
grants, endowments, donations, or contributions used actually, property.
directly, and exclusively for educational purposes shall be exempt 1) No money shall be paid out of the Treasury except in
Parens patriae means "father of his country", and refers to the
from tax. pursuance of an appropriation made by law.
State as a last-ditch provider of protection to those unable to
5. Statutory exemptions are granted at the discretion of the 2) No public money or property shall be appropriated, applied, care and fend for themselves.
legislature. However, as provided in Sec 28(4) Art VI, no law paid, or employed, directly or indirectly, for the use, bene t, or
While the Regalian doctrine is state ownership over natural
granting any tax exemption shall be passed without the support of any sect, church, denomination, sectarian
resources, police power is state regulation through legislation, and
concurrence of a majority of all the Members of the Congress. institution, or system of religion, or of any priest, preacher,
parens patriae is the default state responsibility to look after the
minister, or other religious teacher, or dignitary as such, except
6. Where a tax exemption was granted gratuitously, the same may be defenseless, there remains a limbo on a exible state policy bringing
when such priest, preacher, minister, or dignitary is assigned to
validly revoked at will, with or without cause. these doctrines into a cohesive whole. We ll this void through the
the armed forces, or to any penal institution, or government
7. If the exemption is granted for valuable consideration, it is deemed
Public Trust Doctrine.
orphanage or leprosarium.
to partake of a contract and obligation thereof is protected against In this framework, a relationship is formed — the state is the
3) All money collected on any tax levied for a special purpose
impairment. Sec 10 Art III. trustee, which manages speci c natural resources and the
shall be treated as a special fund and paid out for such purpose
★ In Casanova v. Hord, the Spanish Government, in exchange trust principal — for the trust principal for the bene t of the
only. If the purpose for which a special fund was created has
for certain obligations assumed by the plainti , decreed to him current and future generations — the beneficiaries.
been ful lled or abandoned, the balance, if any, shall be
certain mines in accordance with a Royal Decree, which inter transferred to the general funds of the Government. The public is regarded as the bene cial owner of trust resources, and
alia imposed a number of taxes. courts can enforce the public trust doctrine even against the
government itself. The Philippine national population program has always been
1.2. The doctrine is inapplicable herein considering
that Congress by enacting RA 8479 has already grounded two cornerstone principles: “principle of
See Political Law Case Digest No. 25
provided for the mechanism to protect the interest no-abortion” and the “principle of non-coercion.”
of the Filipino consumers. The Court agrees with ALFI that the authors of the RH-IRR
DepEd v. Rizal Teachers Kilusang Bayan for Credit 2019 2. Public respondent RTC therefore committed grave abuse gravely abused their o ce when they rede ned the meaning of
of discretion in not dismissing the Amended Petition. abortifacient. It allows “contraceptives” and recognizes as
May the DepEd be compelled by writ of mandamus to collect, by “abortifacient” only those that primarily induce abortion.
salary deductions, the loan payments of public school teachers and See Remedial Law Case Digest No. 74
Evidently, the addition of the word “primarily,” in the RH-IRR is
remit them to the RTKBCI?
indeed ultra vires. With such quali cation in the RH-IRR, it
RTKBCI has no clear legal right to demand that DepEd act as its Separation of Church and State
appears to insinuate that a contraceptive will only be considered as
collecting and remitting agent. This is not one of DepEd's power, §6. ART II. The separation of Church and State shall be an “abortifacient” if its sole known e ect is abortion or, as pertinent
duties, and functions. inviolable. here, the prevention of the implantation of the fertilized ovum.
Teachers have no one else to turn to for protection of their welfare Thus, the word “primarily” in Section 3.01(a) and (j) of the
except the State itself. For its part, the State is duty bound to render Aglipay v. Ruiz
RH-IRR should be declared void.
such protection in observance of its duty under the doctrine of What is guaranteed by our Constitution is religious liberty, not
parens patriae. In implementing the payroll deduction system, mere religious toleration. Religious freedom, however, as a Right to balanced and healthful ecology
DepEd performed a function only secondarily to favor RTKBCI as a constitutional mandate is not inhibition of profound reverence for
private lending institution and primarily to protect and promote the religion and is not a denial of its in uence in human a airs. In fact, International Service for the Acquisition of
welfare of teachers and institutions of basic education. certain general concessions are indiscriminately accorded to religious Agri-Biotech Applications v. Greenpeace 2015 En Banc
sects and denominations. Southeast Asia
Here, the stamps were not issued and sold for the bene t of the Greenpeace, et al alleged that the Bt talong eld trials violate their
COA v. Pampilo, Jr. 30 Jun 2020 EN BANC
Roman Catholic Church. Nor were money derived from the sale of constitutional right to health and a balanced ecology.
1. The RTC cannot invoke the doctrine of parens patriae. the stamps given to that church. On the contrary, it appears that the Oposa v. Factoran, Jr. signaled an even more liberalized policy on
only purpose in issuing and selling the stamps was "to advertise the locus standi in public suits. In said case, we recognized the "public
1.1. Under the doctrine of parens patriae, the judiciary,
Philippines and attract more tourists to this country." right" of citizens to "a balanced and healthful ecology which, for
as an agency of the State, has the supreme power
and authority to intervene and to provide the rst time in our nation's constitutional history, is solemnly
protection to persons non sui juris - those who
Right to life of the unborn incorporated in the fundamental law." Their personality to sue in
because of their age or incapacity are unable to care behalf of the succeeding generations can only be based on the
Imbong v. Ochoa 2014 En Banc
and fend for themselves. concept of intergenerational responsibility insofar as the
right to a balanced and healthful ecology is concerned.
The Constitution does not de ne or restrict marriage on the basis of

When in doubt, cases must be resolved in favor of the constitutional Right to Quality Education
sex, gender, sexual orientation, or gender identity or expression.
right to a balanced and healthful ecology. Parenthetically, judicial
adjudication is one of the strongest fora in which the ⭐Council of Teachers and Staff of Colleges Lacking a manifestly restrictive textual de nition of marriage, the
precautionary principle may nd applicability. and Universities of the Philippines v. 2018 En Banc Constitution is capable of accommodating a contemporaneous
Secretary of Education
understanding of sexual orientation, gender identity and expression,
While the Constitution indeed mandates the State to provide quality and sex characteristics (SOGIESC). The plain text and meaning
Mosqueda v. Pilipino Banana education, the determination of what constitutes quality of our constitutional provisions do not prohibit SOGIESC.
2016 En Banc
Growers & Exporters Association education is best left with the political departments who have To continue to ground the family as a social institution on the concept
the necessary knowledge, expertise, and resources to determine the of the complementarity of the sexes is to perpetuate the discrimination
The constitutional right to health and maintaining environmental
same. faced by couples, whether opposite-sex or same-sex, who do not t
integrity are privileges that do not only advance the interests of a
group of individuals. The benefits of protecting human health and the into that mold.
environment transcend geographical locations and even generations. Right of Indigenous Cultural Communities
This is the essence of Sections 15 and 16, Article II of the
⭐Tawahig v. Lapinid 2019
Constitution. In Oposa v. Factoran, Jr. we declared that the right Dynamics Among the Branches of
E
to a balanced and healthful ecology under Section 16 is an issue of The Philippine legal system's framework for the protection of Government
transcendental importance with intergenerational indigenous peoples was never intended and will not operate to
implications. It is under this milieu that the questioned ordinance deprive courts of jurisdiction over criminal o enses. Individuals 1 Separation of Powers
should be appreciated. belonging to indigenous cultural communities who are charged with
criminal offenses cannot invoke the Indigenous Peoples' Rights Act of The separation of powers is a fundamental principle in our system
1997, to evade prosecution and liability under courts of law. of government. It obtains not through express provision but by
Resident Marine Mammals v. Reyes 2015 En Banc actual division in our Constitution.
With respect to dispensing justice, resolving con icts, and
The need to give the Resident Marine Mammals legal standing has peace-building, the application of customary laws and practices
is permissible only to the extent that it is in harmony with the Macalintal v. Comelec, et al. Separate Opinion, Justice Puno
been eliminated by our Rules, which allow any Filipino citizen, as a
steward of nature, to bring a suit to enforce our environmental laws. national legal system. A set of customary laws and practices is The principle of separation of powers prevents the concentration
It is worth noting here that the Stewards are joined as real parties in e ective only within the con nes of the speci c indigenous cultural of legislative, executive, and judicial powers to a single branch of
the Petition and not just in representation of the named cetacean community that adopted and adheres to it. government by deftly allocating their exercise to the three branches
species. of government.
Family as social institution
It is now beyond debate that the principle of separation of powers
⭐Falcis III v. Civil Registrar General 2019 En Banc 1) allows the “blending” of some of the executive, legislative,
or judicial powers in one body; In every case of permissible delegation, there must be a showing that
the delegation itself is valid. It is valid only if the law
2) does not prevent one branch of government from inquiring Macalintal v. Comelec, et al. Separate Opinion, Justice Puno
into the a airs of the other branches to maintain the a) is complete in itself, setting forth therein the policy to be
balance of power; For its part, this Court checks the exercise of power of the other
executed, carried out, or implemented by the delegate; and
branches of government through judicial review. Since then, the
3) but ensures that there is no encroachment on matters Court has used its expanded power to check acts of the House of b) xes a standard — the limits of which are su ciently
within the exclusive jurisdiction of the other branches. Representatives, the President, and even of independent bodies such determinate and determinable — to which the delegate must
as the Electoral Tribunal, the Comelec, and the CSC. conform in the performance of his functions.
Congress checks the other branches of government primarily A su cient standard is one which de nes legislative policy, marks
In Re Production of Court Records 2012 En Banc
through its law making powers. Congress can create administrative its limits, maps out its boundaries and speci es the public agency to
The doctrine of separation of powers inures not by express agencies, de ne their powers and duties, x the terms of o cers and apply it. It indicates the circumstances under which the legislative
provision of the Constitution, but as an underlying principle that their compensation. It can also create courts, de ne their command is to be e ected.
constitutes the bedrock of our system of checks and balances in jurisdiction and reorganize the judiciary so long as it does not
government. It divides the government into three branches, each undermine the security of tenure of its members. Concomitant with ⭐Provincial Bus Operators Association 2018 En Banc
with well-de ned powers. In its most basic concept, the doctrine its principal power to legislate is the auxiliary power to ensure that of the Philippines v. DOLE
declares that the legislature enacts the law, the executive implements the laws it enacts are faithfully executed. Our governmental structure rests on the principle of separation of
it, and the judiciary interprets it. powers. In reality, however, the powers are not as strictly con ned
Each branch is considered separate, co-equal, coordinate and or delineated to each branch. The growing complexity of modern
supreme within its own sphere, under the legal and political 3 Delegation of Powers life, the multiplication of the subjects of governmental regulation,
reality of one overarching Constitution that governs one and the increased di culty of administering the laws require the
The rule is that what has been delegated, cannot be delegated or as
government and one nation for whose bene t all the three delegation of powers traditionally belonging to the legislative to
expressed in a Latin maxim—potestas delegata non delegari potest.
separate branches must act with unity. administrative agencies.
The recognized exceptions to the rule are delegation:
A lesser known but no less important aspect of the principle of
1) Of tari powers to the President under Sec 28(2) Art VI;
separation of powers is the principle of comity or the practice of
voluntarily observing inter-departmental courtesy in undertaking 2) Of emergency powers to the President under Sec 23(2) Art ⭐Kilusang Mayo Uno v. Aquino III 2019 En Banc
their assigned constitutional duties for the harmonious working of VI;

All that is required for the valid exercise of this power of subordinate
government. 3) To the people at large; legislation is that
4) To local governments; and 1) the regulation must be germane to the objects and purposes
5) To administrative bodies. of the law; and
2 System of Checks and Balances
b. Suability then depends on the nature of the function

2) that the regulation be not in contradiction to, but in Under the restrictive rule of state immunity, state immunity
it is performing either governmental or proprietary.
conformity with, the standards prescribed by the law. extends only to acts jure imperii. The restrictive application of
State immunity is proper only when the proceedings arise out of 5) Suability vs. Liability. — Waiver of immunity by the State
The Social Security Act has validly delegated the power to x the
commercial transactions of the foreign sovereign, its commercial does not mean concession of its liability.
contribution rate and the minimum and maximum amounts for the
activities or economic a airs.
monthly salary credits. It is within the scope of the Social Security a. Suability is the result of the express or implied
Commission's power to x them, as clearly laid out in the law. The doctrine of immunity from suit will not apply and may not be consent of the State to be sued.
invoked where the public o cial is being sued in his private and
b. Liability is determined after hearing on the basis of
personal capacity as an ordinary citizen.
relevant laws and established facts.
F State Immunity In this case, the US respondents were sued in their o cial capacity
as commanding o cers of the US Navy. The suit is deemed to be Philippine Textile Research Institute v. CA 2019
1 Basis one against the US itself. The principle of State immunity thus
PTRI, et al. are not immune from suit. Being an unincorporated
applies.
government agency that exercises a governmental function,
§3 Art XVI. The State may NOT be sued without its consent.
ordinarily, the PTRI enjoys immunity from suit.
2 Exceptions
Arigo v. Swift 2014 En Banc The State may be sued with its consent. The State's consent to
1) Where a suit is led NOT against the government itself or its be sued may be given either expressly or impliedly. Express
While the doctrine appears to prohibit only suits against the state consent may be made through a general law or a special law. The
o cials but against one of its entities, it must be ascertained
without its consent, it is also applicable to complaints led against general law waiving the immunity of the state from suit is found in
whether or not the State has given its consent to be sued.
o cials of the state for acts allegedly performed by them in the Act No. 3083, where the Philippine government 'consents and
discharge of their duties. 2) This ascertainment will depend in the rst instance on WON submits to be sued upon any money claim involving liability
the agency impleaded is incorporated or unincorporated. arising from contract, express or implied, which could serve as a
The rule is that if the judgment against such o cials will require
the state itself to perform an a rmative act to satisfy the same, 3) An incorporated agency has a charter of its own that invests it basis of civil action between private parties.
such as the appropriation of the amount needed to pay the damages with a separate juridical personality. The test of suability lies in PTRI entered into a Contract of Works with B.A. Ramirez. PTRI is
awarded against them, the suit must be regarded as against the state its charter — It is suable if its charter says so; regardless of the being sued upon a claim involving liability arising from a contract.
itself although it has not been formally impleaded. nature of the functions it is performing. Hence, the general law on the waiver of immunity from suit
This traditional rule has evolved into a restrictive doctrine which 4) Unincorporated agencies have no separate juridical nds application.
distinguishes personality as they are merged in the general machinery of the Furthermore, there is implied consent on the part of the State to be
government. subjected to suit when the State enters into a contract. However,
a) sovereign and governmental acts (jure imperii) from
a. A suit against it is necessarily against the State. distinction must still be made between one which is executed in the
b) private, commercial and proprietary acts (jure gestionis).
exercise of its sovereign functions and another which is done in
its proprietary capacity. providing clearing house facilities, it is not immune from
11. Even on the assumption that CBP is performing
suit as its Charter, by express provision, waived its
proprietary functions, still, it cannot be held liable because
immunity from suit.
Valentino and Estacio acted beyond the scope of their
BPI v. Central Bank of the Philippines 12 Oct 2020 4.1. However, it did not necessarily mean that it duties.
conceded its liability.
CBP is NOT immune to suit although it performs governmental 12. Article 2180 of the Civil Code provides that an employer
functions. CBP is not liable for the acts of its employees because Valentino and shall be liable for the damages caused by their employees
1. A state may not be sued without its consent. However, state Estacio were not "special agents". acting within the scope of their assigned tasks.
immunity may be waived expressly or impliedly. 5. The State in the performance of its governmental functions 13. Valentino and Estacio's fraudulent acts of tampering with
is liable only for the tortuous acts of its special agents. and pilfering of documents are not in furtherance of CBP's
1.1. Express consent may be embodied in a general or
interests nor done for its account as the said acts were
special law. 5.1. On the other hand, the State becomes liable as an
unauthorized and unlawful.
1.2. Consent is implied when the state enters into a ordinary employer when performing its
proprietary functions. 14. Thus, where a public o cer acts without or in excess of
contract or it itself commences litigation.
jurisdiction, any injury or damage caused by such acts is his
2. In the case of government agencies, the question of its 6. Here, CBP's establishment of clearing house facilities for its
or her own personal liability and cannot be imputed to the
suability depends on whether it is incorporated or member banks to which Valentino and Estacio were
State.
unincorporated. assigned as Bookkeeper and Janitor-Messenger, respectively,
is a governmental function. See Political Law Case Digest No. 15
2.1. An incorporated agency has a Charter of its own
with a separate juridical personality while an 7. As such, the State or CBP in this case, is liable only for the
unincorporated agency has none. torts committed by its employee when the latter acts as a
special agent but not when the said employee or o cial G The National Territory
3. The CBP is a government corporation with separate performs his or her functions that naturally pertain to his
juridical personality and not a mere agency of the or her o ce.
government.
1 Scope
8. A special agent is de ned as one who receives a de nite
3.1. Sections 1 and 4 of RA 265, as amended, provided and xed order or commission, foreign to the exercise of the ART I. The national territory
for the creation of the CBP, a corporate body with duties of his o ce. 1) comprises the Philippine archipelago, with all the islands
certain corporate powers which include the
9. Evidently, both Valentino and Estacio are not considered as and waters embraced therein, and all other territories over
authority to sue and be sued.
special agents of CBP. which the Philippines has sovereignty or jurisdiction,
3.2. The function of the CBP as the central monetary
10. Thus, CBP cannot be held liable for any damage caused to 2) consisting of its terrestrial, uvial and aerial domains,
authority is a purely governmental function.
BPI by reason of Valentino and Estacio's unlawful acts.
4. While the CBP performed a governmental function in
3) including its territorial sea, the seabed, the subsoil, the 2. to contribute money, property, or industry
2. accretion,
insular shelves, and other submarine areas.
3. to a common fund,
3. cession and
Archipelagic doctrine of territoriality. — The waters around,
4. with the intention of dividing the pro ts among themselves.
between, and connecting the islands of the archipelago, regardless of 4. prescription,
their breadth and dimensions, form part of the internal waters of NOT by executing multilateral treaties on the regulations of Characteristic Elements
the Philippines. sea-use rights or enacting statutes to comply with the treaty's terms 1) Consensual — perfected by mere consent;
to delimit maritime zones and continental shelves.
2) Nominate — has a special name in law;
2 Archipelagic Doctrine
3) Bilateral — entered into by 2 or more persons with
Commercial Law reciprocal rights and obligations;
Magallona v. Ermita 2011 En Banc 4) Onerous — parties aspire to gain some bene t;
I Business Organizations
RA 9522 is a Statutory Tool to Demarcate the Country's 5) Commutative — the undertaking of each of the partners is
Maritime Zones and Continental Shelf Under UNCLOS III, considered as the equivalent of that of the others;
not to Delineate Philippine Territory.
A Partnerships 6) Principal — does not depend upon some other contracts;
UNCLOS III has nothing to do with the acquisition (or loss)
of territory. It is a multilateral treaty regulating, among others, 7) Preparatory — a means to an end.
1. General Provisions
sea-use rights over maritime zones, i.e., Essential Features
1. the territorial waters [12 nautical miles from the 2. Rights and Obligations of Partnership and Partners
1) There must be a valid contract;
baselines],
3. Dissolution and Winding Up 2) The parties have legal capacity to enter into the contract;
2. contiguous zone [24 nautical miles from the baselines],
4. Limited Partnership 3) There must be a mutual contribution of money, property or
3. exclusive economic zone [200 nautical miles from the industry to a common fund;
baselines]), and
4) The object must be lawful; and
1 General Provisions
4. continental shelves
5) The primary purpose is to carry on a business for pro ts and
that UNCLOS III delimits. UNCLOS III and its ancillary baselines a) De nition, Elements, and Characteristics to divide the same among the parties.
laws play no role in the acquisition, enlargement or, as petitioners
claim, diminution of territory. Under traditional international law b) Rules to Determine Existence
Definition
typology, States acquire (or conversely, lose) territory through
By the contract of partnership
1. occupation,
1. two or more persons bind themselves
undertaking, the partnership is dissolved, unless

1) Persons who are not partners as to each other are not partners 4) All partners are personally liable for the debts of the
continued by the partners.
as to third persons except as provided by Article 1825 on partnership with their separate property (1816, 1822-1824)
partnership by estoppel; exc limited partners; (1843) d) Partnership by Estoppel
2) Co-ownership or co-possession does not of itself establish a 5) The books shall be kept at the principal place of business;
partnership, whether such co-owners or co-possessors do or do (1805) When does partnership liability result?
not share any pro ts made by the use of the property;
6) A duciary relation exists between partners; (1807) Partnership by estoppel results if ALL the actual partners
3) The sharing of gross returns does not of itself establish a consented to the representation.
7) A capitalist partner cannot carry on a competing business
partnership, whether or not the persons sharing them have a
unless expressly allowed (1808), while an industrial partner is When is liability pro rata?
joint or common right or interest in any property from which
absolutely prohibited from engaging in any other business;
the returns are derived; a) When there is NO existing partnership, and all those
(1789)
represented as partners consented; or
4) The receipt by a person of a share of the pro ts of a
8) The partnership is not terminated upon dissolution, but
business is prima facie evidence that he is a partner in the b) When there is an existing partnership, and not all of the
continues until the winding up is completed. (1828)
business, except if such pro ts were received in payment as: partners consented.
a) Debt by installments or otherwise; c) Partnership Term When is liability separate?
b) Wages of an employee or rent to a landlord; a) When there is NO existing partnership, and only some of
1) There is no time limit for the existence of the partnership as those represented consented; or
c) Annuity to a widow or representative of a deceased this depends on the agreement of the parties.
partner; b) When there is an existing partnership, and none of the
2) A partnership may be formed partners consented.
d) Interest on a loan, though the amount of payment
vary with the pro ts of the business; a) At will — Elements to establish liability as a partner on ground of estoppel
e) Consideration for the sale of a goodwill of a business i) no time is speci ed and is not formed for a particular 1) Proof by plainti that he was individually aware of the
or other property by installments or otherwise. undertaking and which may be terminated anytime defendant’s representations;
by mutual agreement of the partners or by the will of
Incidents of a partnership one of them; OR 2) Reliance on such representation by the plainti ; and
1) Partners share in pro ts and losses. There is community of ii) one for a xed term or particular undertaking that is 3) Lack of any denial or refutation of the statements by the
interest; (1767, 1797, 1798) continued after the termination of such term or defendant.
2) They have equal rights in the management and conduct of the particular undertaking without any express agreement
e) Partnership as Distinguished from Joint Venture
business; (1803) b) With a xed term — one in which the term is xed or
3) Every partner is an agent of the partnership who binds the agreed upon or formed for a particular undertaking, and
others for his acts for the purpose of its business; (1818) upon expiration of the term or completion of the
venture. [Cesar L. Villanueva, Philippine Corporate

1) A joint venture is an association of persons or companies May execute all acts of administration despite the opposition
Law]
jointly undertaking some commercial enterprise; generally, of his partners, unless he should act in bad faith;
a) all contribute assets and share risks which requires a Primelink Properties v. Lazatin-Magat If appointed in articles of partnership, his power is irrevocable
community of interest in the performance of the without just or lawful cause. Thus, removal may be had
subject matter, As a general rule, the relation of the parties in joint ventures is only
governed by their agreement. When the agreement is silent on any
b) a right to direct and govern the policy in connection a) For lawful cause of if there is bad faith; AND
particular issue, the general principles of partnership may be resorted
therewith, and b) Through the votes of the partners representing the
to.
c) a duty, which may be altered by agreement to share controlling interest.
An important distinction between these two business forms is that
both in pro t and losses. If appointed after the partnership has been constituted, his
although a corporation cannot enter into a partnership contract, it
2) Under Philippine law, a joint venture is a form of partnership may, however, engage in a joint venture with others. power may be revoked at any time by the vote of the partners
and should thus be governed by the law of partnerships. representing the controlling interest.
citing Aurbach v. Sanitary Wares Manufacturing Corporation
3) Since a joint venture is a particular partnership, it would have 2) If TWO OR MORE are appointed managers
the following characteristics: f ) Professional Partnership a) without speci cation of their respective duties, or
a) It would have a juridical personality separate and b) without a stipulation that one of them shall not act
distinct from that of each of the joint venturers. General professional partnership. Two or more persons may also without the consent of all the others,
form a partnership for the exercise of a profession.
b) Each of the co-venturers would be liable with their each one may separately execute all acts of administration,
private property to the creditors of the joint venture but if any of them should oppose the acts of the others, the
Saludo, Jr. v. PNB 2018
beyond their contributions to the joint venture. decision of the majority of the managers shall prevail.
c) Even if a co-venturer transfers his interest to another, A partnership for the practice of law, constituted in accordance with
In case of a tie, the matter shall be decided by the partners
the transferee does not become a co-venturer together the Civil Code provisions on partnership, acquires juridical
owning the controlling interest.
with the others in the joint venture unless all the other personality by operation of law. Having a juridical personality
co-venturers consent. This is in consonance with the distinct and separate from its partners, such partnership is the real In case UNANIMITY OF ACTION is stipulated, the
principle of delectus personarum. party-in-interest in a suit brought in connection with a contract CONCURRENCE OF ALL shall be necessary for the
entered into in its name and by a person authorized to act on its validity of the acts.
d) Generally, the co-venturers acting on behalf of the
behalf. The absence or disability of any one of them cannot be alleged,
joint venturers are agents thereof with capacity to
bind the joint venture. unless there is imminent danger of grave or irreparable
g) Management injury to the partnership.
e) Death, retirement, insolvency, civil interdiction or
dissolution of any co-venturer dissolves the joint
1) If ONE is appointed manager
3) When the manner of management has NOT been agreed When does a partnership commence? a) Bringing to the common funds any pro ts from the
upon, the following rules shall be observed: other business; and
GR: From the moment of the execution of the contract.
a) ALL the partners shall be considered agents and b) Personally bearing the losses.
EXC: Unless otherwise stipulated.
whatever any one of them may do alone shall bind the
When is a capitalist partner obliged to sell his interest to others?
partnership. Obligations of partners with respect
to contribution of property 1) There is an imminent loss of the partnership business;
b) UNANIMOUS CONSENT is required in making
any important alteration in the immovable 1) To contribute at the beginning of the partnership or at the 2) The majority of the capitalist partners are of the opinion
property of the partnership, even if it may be useful to stipulated time the money, property, or industry which he may that an additional contribution to the common fund would
the partnership. have promised to contribute; save the business;
But if the refusal of consent by the other partners is 2) To answer for eviction in case the partnership is deprived of 3) The capitalist partner refuses deliberately to contribute an
manifestly prejudicial to the interest of the partnership, the determinate property contributed; additional share to the capital; and
the court's intervention may be sought. 3) To answer for the fruits of the property the contribution of 4) There is no agreement that even in case of an imminent loss of
which he delayed, from the date they should have been the business, the partners are not obliged to contribute.
GR: Partner NOT entitled to compensation.
contributed up to the time of actual delivery. Here, an industrial partner is exempt from contributing an additional
EXC: The law may imply a contract for compensation.
share. He has already contributed his entire industry.
Prohibition against engaging in business
Rights and Obligations of Partnership and 1) Industrial partner — Absolutely prohibited, regardless of Obligation of managing partner who collects debt
2
Partners the nature of the business whether of the same kind or not. Where
Unless expressly allowed, not merely by toleration. The 1) There exists at least 2 debts, one where the collecting partner is
a) Rights and Obligations of the Partnership
remedies of the other partners would be creditor, and the other, the partnership is the creditor;
a) To exclude the erring industrial partner from the 2) Both debts are demandable; and
1) Refund amounts disbursed by the partner in behalf of the
rm; or
partnership plus the corresponding interest from the time the 3) The collecting partner is authorized to manage and actually
expenses are made; b) To avail themselves of the bene ts which he may manages the partnership, the RULE is as follows:
have obtained;
2) Answer for the obligations the partner may have contracted in GR: The sum received is to be applied to the 2 credits in
good faith in the interest of the business; and c) Plus right to damages in either case. proportion to their amounts.
3) Answer for risks in consequence of its management. 2) Capitalist partner — Relative prohibition, only to any
EXC: If received, for the account of the partnership, shall be applied
business of the same kind, unless there is a stipulation to the
b) Obligations of Partners Among Themselves to the partnership credit only.
contrary. Sanctions for violating the prohibition include:
EXC to EXC:
If credit to the collecting partner is more onerous, the debtor Fungibles or things which cannot be kept b) If no agreement, but the contract provides for a
is given the right to prefer payment to the former. without deteriorating even if contributed only Partnership pro t-sharing scheme, the losses shall be in accordance
for use with that scheme.
Obligation of partner who receives
share of partnership credit Things contributed to be sold Partnership c) If there is also no pro t-sharing stipulated, then losses
A partner shall be obliged to bring to the partnership capital what shall be borne in proportion to capital contribution.
he received even though he may have given receipt for his share only, Things brought and appraised in the inventory Partnership In any case, the purely industrial partner shall not be
IF liable for the losses.
Rules for distribution of profits and losses
1) He has received, in whole or in part, his share of a partnership Can a third person be designated to determine share in profits
1) Capital
credit; or losses?
a) According to agreement;
2) The other partners have not collected theirs; AND YES. If the partners have agreed to intrust to a third person.
b) If no agreement, the share shall be equal;
3) The partnership debtor has become insolvent. Such designation may be impugned only when it is manifestly
c) In case of imminent loss of the business, additional shares inequitable. In no case may a partner complain of such decision if
Obligations of partner for damages to partnership
may be determined by the majority. he
GR: The damages caused by a partner to the partnership
2) Pro ts 1. Has begun to execute the decision of the third person, or
CANNOT be o set by the pro ts or bene ts which he may
have earned for the partnership by his industry. a) According to agreement; 2. Has not impugned the same within a period of three
b) If no agreement months from the time he had knowledge thereof,
EXC: If through the partner's extraordinary e orts in other
activities of the partnership, unusual pro ts have been i) The share of the capitalist partner is in proportion to The designation of losses and pro ts cannot be intrusted to one of
realized, the courts may equitably lessen this his capital contribution. the partners.
responsibility. A stipulation which excludes one or more partners from any share
ii) The industrial partner shall receive such share as may
be just and equitable, which must be satis ed rst in the pro ts or losses is VOID.
Risk of loss of things contributed
Who bears loss? before the capitalist partners shall divide the pro ts. Subpartnership
This means the least amount that a capitalist partner Every partner may associate another person with him in his share,
Speci c and determinate things, which are not
Partner gets. but the associate shall NOT be admitted into the partnership
fungible where only use is contributed
3) Losses without the consent of ALL the other partners, even if the
Speci c and determinate things the ownership partner having an associate should be a manager.
Partnership a) According to agreement;
of which is transferred to the partnership
Right of partner to a formal account c) NOT subject to attachment or execution except b) Require any information or account; or
on a claim against the partnership;
GR: During the existence of the partnership, a partner is NOT c) Inspect partnership books.
entitled to a formal account of partnership a airs since his When partnership property is attached for a
The only rights of the assignee are:
right to know are amply protected with regard to access to partnership debt the partners, or any of them, or the
representatives of a deceased partner, cannot claim 1) To receive the pro ts accruing to the assigning partner;
partnership books.
any right under the homestead or exemption 2) To avail of usual remedies in the event of fraud in the
EXC: Action for accounting. Any partner shall have the right to a laws. management;
formal account as to partnership a airs:
d) NOT subject to legal support. 3) To receive assignor’s interest in case of dissolution;
1) If he is wrongfully excluded from the partnership business or
possession of its property by his co-partners; 2) His interest in the partnership; 4) To require an account of partnership a airs, but only in case
Refers to his share of the pro ts and surplus. These may be of dissolution.
2) If the right exists under the terms of any agreement;
assigned. Remedies of separate judgment creditor of a partner
3) As provided by Article 1807 — Every partner must account to
the partnership for any bene t, and hold as trustee for it any A partner shall NOT be deprived of his right, if any, under the 1) Application for a charging order after securing judgment
pro ts derived by him without the consent of the other exemption laws, as regards his interest in the partnership. on his credit. However, claims of partnership creditors
partners from any transaction connected with the formation, 3) His right to participate in the management. must be satis ed rst.
conduct, or liquidation of the partnership or from any use by 2) Other remedies may include
Partnership Property Partnership Capital
him of its property.
a) Receivership;
4) Whenever other circumstances render it just and reasonable. Changes VARIES CONSTANT b) Sale of interest.
e.g. a partner has been assigned abroad for a long time. in value
The interest charged may be redeemed.
Property Rights of a Partner
Original capital Aggregate of the
1) His rights in speci c partnership property; contribution + All individual contributions c) Obligations of Partnership/Partners to Third
Assets property subsequently made in establishing or Persons
A partner is co-owner with his partners.
included acquired + Partnership continuing the
a) Equal right to possess for partnership purposes, Liability for inclusion of name in firm name
name + Goodwill partnership
but not for any other purpose without the consent of
the other partners; Partners by estoppel. Persons who, being not partners, include
Assignment of partner’s whole interest their names in the rm name
b) NOT assignable except in connection with the
This is permitted without causing dissolution. However, such 1. DO NOT acquire the rights of a partner,
assignment of rights of all the partners in the same
assignment does NOT grant the assignee the right to:
property;
a) Interfere in the management;
2. but they shall be SUBJECT to the liability of a partner GR: Every partner is an agent and may execute such acts EXC: Such persons not having such notice have a right to
insofar as third persons without notice are concerned. with binding e ect. assume that the authority of a partner is co-extensive
Liability for contractual obligations of the partnership with the business transacted by his rm.
EXC: If the partner so acting
The general rule is that a partner, who had actual or apparent a) Has in fact no authority; AND Conveyance of real property owned by partnership
authority, has the right to make all partners liable for the Title in Conveyance
b) The third person KNOWS. EFFECT
contracts he makes for the partnership in the name and for the name of in name of
account of the partnership. 2) Acts of strict dominion or ownership
Passes title, but partnership can
The individual liability of partners to creditors is pro rata and GR: NOT binding;
recover if
subsidiary.
EXC: Unless authorized by the other partners. a) Conveyance was not in usual
1) Pro rata — based on the number of partners, and not on the Partnership Partnership way of business; or
Except when authorized by the other partners or
amount of contribution. b) Buyer had knowledge that
unless they have abandoned the business, one or
2) Subsidiary or secondary — only after all the partnership the partner-seller had no
more but less than all the partners have no authority
assets have been exhausted. authority.
to:
Industrial partners, although not liable for losses, are 1) Assign the partnership property in trust for creditors Buyer gets equitable interest of the
personally liable for liabilities of the partnership to third or on the assignee's promise to pay the debts of the partnership except if
persons. partnership; a) Partnership is not engaged in
Losses = settlement of partnership a airs among partners; Partner’s buying and selling of lands;
2) Dispose of the goodwill of the business; Partnership
name or
Liabilities = to third persons. 3) Do any other act which would make it impossible to b) Buyer had knowledge that
Stipulation against liability carry on the ordinary business of a partnership; the partner-seller had no
4) Confess a judgment; authority.
A stipulation among partners contrary to the pro rata and
subsidiary liability expressly imposed is VOID and of no e ect as 5) Enter into a compromise concerning a partnership Partner/s in
to third persons. One or
claim or liability; whose name
more Passes title, same as (1)
Such stipulation however is VALID and enforceable among the 6) Submit a partnership claim or liability to arbitration; the title
partners
partners. stands
7) Renounce a claim of the partnership.
Liability of partnership for acts of partners 3) Acts in contravention of a restriction on authority One or
Partnership Buyer gets equitable interest of the
1) Acts for apparently carrying out the usual way of more or all
GR: Partnership is NOT liable to third persons having or partner partnership, same as (2)
business of the partnership a.k.a. Acts of administration partners or
actual or presumptive knowledge of the restrictions.
a third Liability arising from partner’s wrongful 1) Dissolution — is the change in the relation of the partners
person in act, omission, or breach of trust caused by any partner ceasing to be associated in the carrying
trust for The partners and partnership are SOLIDARILY liable for: on of the business.
partnership
1) Loss or injury caused to third persons — Requisites for 2) Winding up — is the actual process of settling the business
All liability or partnership a airs after dissolution, involving
All partners Passes title.
partners a) The collection and distribution of partnership assets,
a) Partner must be guilty of a wrongful act or omission;
AND b) Payment of debts, and
Admission by a partner
b) He must be acting in the ordinary course of business, c) Determination of the value of each partner’s interest in
An admission or representation made by any partner concerning
or with the authority of his co-partners even if the act the partnership.
partnership a airs within the scope of his authority is evidence
is unconnected with the business.
against the partnership. 3) Termination — point in time when all partnership a airs are
2) Loss where one partner acting within the scope of his completely wound up and nally settled. It signi es the end of
Notice to, or knowledge of, a partner
apparent authority receives money or property of a third the partnership life.
GR: Notice to any partner of any matter relating to partnership person and misapplies it;
a airs, and the knowledge of the partner acting in the Causes of Dissolution
3) Loss where the partnership in the course of its business
particular matter, 1) Act of parties NOT in violation of their agreement —
receives money or property of a third person and the money or
1. acquired while a partner or property so received is misapplied by any partner while it is in a) Termination of the de nite term or particular
2. then present to his mind, and the custody of the partnership. undertaking speci ed in the agreement;
the knowledge of any other partner Liability of incoming partner for partnership obligations b) Express will of any partner, who must act in good faith,
when no de nite term or particular is speci ed;
3. who reasonably could and should have communicated it to the 1) Limited to his share in the partnership property for
acting partner, existing obligations. c) Express will of ALL the partners who have not assigned
their interests or suffered them to be charged for their
operate as notice to or knowledge of the partnership. GR: Not personally liable for existing partnership
separate debts, either before or after the termination of any
obligations.
EXC: in the case of fraud on the partnership, committed by or with speci ed term or particular undertaking;
the consent of that partner. EXC: Unless there is a stipulation to the contrary. d) Expulsion of any partner from the business bona de in
NB: Notice to any partner, under certain circumstances, operates as 2) Extends to his separate property for subsequent obligations. accordance with such a power conferred by the agreement
notice to or knowledge to the partnership only. Evidently, it between the partners;
does not provide for the reverse situation, or that notice to the 3 Dissolution and Winding Up 2) Act of parties in violation of their agreement;
partnership is notice to the partners. (Guy v. Gacott 2016)
Three stages of ending a partnership: 3) Operation of law —
a) Any event which makes it unlawful for the business of b) At any time if the partnership was a partnership at will i) As to prior or former dealers — persons who extended
the partnership to be carried on or for the members to when the interest was assigned or when the charging credit to partnership prior to dissolution — must have
carry it on in partnership; order was issued. knowledge or actual notice of the dissolution to relieve
partnership from liability;
b) Loss of speci c thing — When a speci c thing which a E ect of dissolution on authority of partner
partner had promised to contribute to the partnership, ii) As to persons who had known of partnership’s existence
perishes before the delivery;
GR: Upon dissolution, a partnership ceases to be a going concern — publication;
and the partner’s power of representation is con ned only to
c) Death of any partner; In both instances, the liability of a partner shall be satis ed
1. acts incident to winding up or out of partnership assets alone when such partner had
d) Insolvency of any partner or of the partnership;
2. completing transactions begun but not nished. been prior to dissolution:
e) Civil interdiction of any partner;
This rule is subject to quali cations. 1) Unknown as a partner to the person with whom the
4) Court decree — On application by or for a partner the contract is made; and
a) With respect to partners themselves —
court shall decree a dissolution due to:
2) So far unknown and inactive in partnership a airs
i) If the dissolution is NOT caused by the act, insolvency
a) Insanity; that the business reputation of the partnership could
or death of a partner, the authority of any partner to bind
b) Incapacity; not be said to have been to any degree due to his
the partnership by a new contract is IMMEDIATELY
connection with it.
c) Misconduct; terminated.
iii) The partnership is in NO case bound by any act of a
d) Persistent breach of partnership agreement; ii) Otherwise, termination of authority depends upon WON
partner after dissolution:
the partner had knowledge or notice of the dissolution —
e) The business of the partnership can only be carried
1) Unlawful to carry on the business, unless the act is
on at a loss; GR: Each partner is liable to his co-partners for his
appropriate for winding up partnership a airs;
share of any liability created by any partner acting
f) Other circumstances render a dissolution equitable.
for the partnership as if the partnership had not 2) Insolvency of partner;
i) Abandonment of the business; been dissolved 3) Partner has no authority to wind up partnership
ii) Fraud in the management of the business; EXC: Unless the partner acting for the partnership had a airs; except by a transaction with one who —
iii) Refusal without justi able cause to render accounting a) knowledge of the dissolution caused by act of a) Is a former dealer and had no knowledge or
of partnership a airs, etc. any partner; OR notice of his want of authority; or
On the application of the purchaser of a partner's interest: b) knowledge or notice of the death or b) Is not a former dealer, and, having no knowledge
insolvency. or notice of his want of authority, the fact of his
a) After the termination of the speci ed term or particular
want of authority has not been duly published.
undertaking; b) With respect to third persons —
Winding up; manner, persons authorized i) To have partnership property applied for the 1) Right of a lien on, or retention of, the surplus of partnership
payment of its liabilities and to receive in cash his property after satisfying partnership liabilities for any sum of
Winding up may be done judicially or extrajudicially by
share of the surplus; money paid or contributed by him;
1) The partners designated by the agreement;
ii) To be indemni ed for damages caused by the guilty 2) Right to subrogation in place of partnership creditors after
2) In the absence of such agreement, by all partners who have not partner; payment of partnership liabilities; and
wrongfully dissolved the partnership; OR
iii) To continue the business in the same name during 3) Right of indemni cation by the guilty partner against all
3) The legal representative of the last surviving partner, not the agreed term, by themselves or jointly with others; debts and liabilities of the partnership.
insolvent; OR and
Rules in settling accounts between partners
4) A court-appointed receiver. iv) To possess partnership property should they
decide to continue the business. 1) Assets of the partnership. —
Right of partner to application of partnership property on
dissolution b) If guilty of wrongfully causing the dissolution — a) Partnership property + Goodwill; AND
“Partner’s lien” is the right of every partner, on a dissolution, i) If the business is NOT continued — To have b) Contributions of the partners necessary for the payment
partnership property applied for the payment of its of all liabilities.
against the other partners and persons claiming through them in
respect of their interests as partners, to have the partnership liabilities and to receive in cash his share of the surplus 2) Order of application of the assets. —
property applied to discharge partnership liabilities and the surplus less damages.
a) Those owing to partnership creditors;
assets, if any, distributed in cash to the respective partners, after ii) If the business is continued
deducting what may be due to the rm from them as partners. b) Those owing to partners other than for capital and pro ts,
1) To have the value of his interest in the partnership such as loans given by partners or advances for business
1) If dissolution NOT in contravention of agreement — at the time of dissolution, less damages expenses;
Partners have the right to have ascertained and paid in cash or secured by bond
c) Return of capital contribution of partners;
a) The partnership property applied to discharge the approved by the court; and
liabilities of the partnership; AND d) Pro ts.
2) To be released from all existing and future
b) The surplus, if any, applied to pay in cash the net amount liabilities of the partnership. 3) Right of a partner where assets insu cient. — The
owing to respective partners. following shall have the right to enforce the contributions
In ascertaining the value of the partner's interest
NO partner is liable for any loss sustained as a result of the value of the goodwill of the business shall a) Any partner or his legal representative, to the extent of the
dissolution. NOT be considered. amount which he has paid in excess of his share of the
liability;
2) If dissolution in contravention of agreement — The Rights of injured partner where partnership contract rescinded
rights of a partner vary depending on his innocence. b) An assignee for the bene t of creditors; or
a) If innocent — c) Any person appointed by the court
4) Liability of deceased partner’s individual property. — The lien comes ahead of the separate creditors of said partner. Money, property or
Contribution At least money or property
shall be liable for his share of the contributions necessary to industry
Rights of retiring, or of estate of deceased, partner
satisfy the liabilities incurred while he was a partner.
when business is continued NO unless also a general
5) Priority to payment of partnership creditors/ partners’ To proceedings by partner, or where the object
creditors. — When partnership property and the individual 1) To have the value of the interest of the retiring or deceased
Proper Party or against the is to enforce his right
properties of the partners are in possession of a court for partner in the partnership ascertained as of the date of
partnership against, or liability to, the
distribution retirement or death; AND
partnership.
a) partnership creditors shall have priority on 2) To receive thereafter, as an ordinary creditor, an amount
partnership property; and Does not make
a) equal to the value of his share in the dissolved
Assignment of assignee new partner
b) separate creditors on individual property. partnership Freely assignable
interest without consent of
This is otherwise known as the doctrine of the b) with interest, others.
marshalling of assets. c) or, at his option, in lieu of interest, the pro ts
Name in firm ✔ ✘
attributable to the use of his right.
6) Distribution of property of insolvent partner. — his
individual property shall be distributed as follows: Absolutely or
Other business No prohibition
4 Limited Partnership relatively prohibited
a) To those owing separate creditors;
b) To those owing to partnership creditors; and De nition and Requirements Retirement, death, insanity,
Dissolution ✔ insolvency DOES NOT
c) To those owing to partners by way of contribution. A limited partnership is one formed by two or more persons,
dissolve
having as members
Rights of creditors of dissolved partnership which is continued
1. one or more general partners AND Statutory requirements
1) Equal rights of dissolved and new partnership creditors.
2. one or more limited partners. 1) Sign and swear to a certi cate;
2) Liability of persons continuing the business. — shall be
satis ed out of the partnership property only, unless there The limited partners as such shall not be bound by the obligations 2) File for record the certi cate in the O ce of the SEC.
is a stipulation to the contrary. of the partnership.
A limited partnership is formed if there has been substantial
3) Prior right of dissolved partnership creditors as against As to General Limited compliance in good faith with the foregoing requirements.
purchaser. — When a retiring or deceased partner has sold his
Extends only to capital If there is no substantial compliance, the partnership becomes a
interest without a nal settlement with partnership creditors, Liability Personally liable
contribution general partnership as far as third persons are concerned, in
such creditors have an equitable lien on the consideration which ALL members are liable as general partners.
paid to the retiring or deceased partner by the purchaser. Management ✔ ✘
When does a limited partner become liable as a general a) On ascertaining the mistake he promptly renounces his EXC: When there is stipulation to the contrary in the certi cate; or
partner? interest in the pro ts of the business, or other compensation
Where ALL partners consent to the return other than in form
by way of income;
1. If his surname appears in rm name; of cash.
b) His surname does NOT appear in the partnership name; and
2. If he takes part in the control of the business. When may a limited partner have the partnership dissolved?
c) He does NOT participate in the management of the business.
Limited partner; speci c rights Upon petition with the court:
Transactions of limited partner with the partnership
1) To require that the partnership books be kept at the principal a) When his demand for the return of his contribution is
place of business; 1) Allowable transactions.— denied although he has a right to such return; or
2) To inspect and copy at a reasonable hour partnership books a) Grant loans to the partnership; b) When his contribution is not paid because the other
or any of them; b) Transacting other business with it; and liabilities of the partnership have not been paid or the
partnership property is insu cient for their payment.
3) To demand true and full information of all things a ecting c) Receiving a pro rata share of the partnership assets with
the partnership; general creditors if he is not also a general partner. Before seeking judicial redress, he may rst ask the other partners to
have the partnership dissolved.
4) To demand a formal account of partnership a airs whenever 2) Prohibited transactions. —
circumstances render it just and reasonable; Limited partner; liabilities
a) Receive or hold as collateral security any partnership
5) To ask for dissolution and winding up by decree of court; property; or 1) To the partnership —
6) To receive a share of the pro ts or other compensation by way b) Receive payment, conveyance or release from liability if it a) For the di erence between his contribution as actually
of income; will prejudice the right of third persons. made and that stated in the certi cate as having been
7) To receive the return of his contribution provided there is a made, and
IF at the time the assets of the partnership are not
surplus. su cient to discharge partnership liabilities to persons b) For any unpaid contribution which he agreed in the
GR: Unless he is a general partner, a limited partner is NOT a not claiming as general or limited partners. certi cate to make in the future at the time and on the
conditions stated in the certi cate.
proper party to proceedings by or against a partnership Any violation of the prohibition will give rise to the
presumption that it has been made to defraud 2) To partnership creditors and other partners — becomes
EXC: Where the object is to enforce a limited partner's right against
partnership creditors. liable for partnership obligations when
or liability to the partnership.
Return of contribution a) He contributes services, instead of only money or
Status of person erroneously believing
himself to be a limited partner property;
GR: A limited partner only has the right to demand and receive
A person who has contributed to a partnership erroneously believing CASH for his contribution, whether he contributed money or b) He allows his surname to appear in the rm name;
that he has become a limited partner, is NOT personally liable as a property.
general partner, provided:
c) He fails to have a false statement in the certi cate c. to inspect the partnership books; b) in respect to the capital of their contributions;
corrected, knowing it to be false;
2. He is only entitled to 3) Those to general partners
d) He takes part in the control of the business;
a. receive the share of the pro ts or other compensation by a) other than for capital and pro ts;
e) He receive partnership property as collateral security, way of income, or
b) in respect to pro ts;
payment, conveyance, or release in fraud of partnership
b. the return of his contribution, to which his assignor
creditors; and c) in respect to capital. (NB: in general partnership, capital
would otherwise be entitled.
enjoys preference over pro ts)
f) There is failure to substantially comply with the legal
What are the requisites for an assignee to
requirements governing the formation of limited become a substituted limited partner? Taxation Law
partnerships.
1) Unanimous consent of all members; or if the limited partner
3) To separate creditors — Charging order — The interest The National Internal Revenue Code
is empowered by the certi cate, must give the assignee the right
may be redeemed with the separate property of any to become a limited partner;
general partner, but may NOT be redeemed with
2) The certi cate must be amended; and I General Principles
partnership property.
3) The amended certi cate must be registered in the SEC. Power of Taxation as Distinguished from Police Power
The liabilities may be waived or compromised,
provided the waiver or compromise: GR: A substituted limited partner is liable for all the liabilities of his and Eminent Domain
1) Is made with unanimous consent; and assignor;
Inherent and Constitutional Limitations of Taxation
2) Does not prejudice partnership creditors who extended EXC: Those of which he was ignorant at the time he became a
credit or whose claims arose before the cancellation or limited partner and which could not be ascertained from the Inherent Limitations
amendment of the certi cate. certi cate.
Direct Constitutional Limitations
Limited partner; assignee to substituted Limited Partnership; Dissolution
The partnership liabilities shall be settled in the following order:
Indirect Constitutional Limitations
A substituted limited partner is a person admitted to all the
rights of a limited partner who has died or has assigned his interest 1) Those due to creditors, including limited partners, Requisites of a Valid Tax
in a partnership.
except those on account of their contributions, in the order of
An assignee, who does NOT become a substituted limited partner, has Tax as Distinguished from Other Forms of Exactions
priority as provided by law;
1. NO right to 2) Those to limited partners Kinds of Taxes
a. require any information or a) in respect to their share of the pro ts and other Doctrines in Taxation
b. account of the partnership transactions or compensation by way of income on their contributions;
imposition, and not a charge on property, and is therefore not Police Eminent
Construction and Interpretation of Tax Laws, Rules, and
an imposition from which petitioner is exempt. As to TAXATION
Power Domain
Regulations
Purpose
Promote Public
Prospectivity of Tax Laws 1) Revenue — The purpose of taxation is to provide funds or Purpose REVENUE
General Welfare convenience
property with which the State promotes the general welfare
Imprescriptibility of Taxes
and protection of its citizens. Raising the revenues is the Limited to cost
Amount UNLIMITED No exaction
Double Taxation principal object of taxation. of regulation
2) Non-Revenue. —
Escape from Taxation Non- Superior to Superior to
Inferior to NIC
a) Regulation; impairment NIC NIC
Exemption from Taxation b) Promotion of General Welfare; Property and Property
Scope Property Rights
Equitable Recoupment c) Reduction of Social Inequality; Liberty Rights Rights
d) Promote Economic Growth; Altruistic

Prohibition on Compensation and Set-O
e) Protectionism. Enjoyment of feeling of Just
Benefits
Compromise and Tax Amnesty govt services contributing to compensation
Characteristics
society‘s welfare
1. Taxes are the enforced proportional contributions from 1) Inherent — the power to tax, an inherent prerogative, has to
persons and property, levied by the State by virtue of its be availed of to assure the performance of vital state functions. Property Generally,
Any Any
sovereignty, for the support of government and for all public Taken money
2) Legislative — taxing power is peculiarly and exclusively
needs. Obligation to pay taxes is not based on contract.
legislative in character and remains undiminished in the State and
2. Except only in the case of poll taxes, nonpayment of a tax may legislative in character. Who
State and LGU State and LGU quasi-public
be the subject of criminal prosecution and punishment. exercises
Constitutionally limited — the power to tax is an attribute of entities
3. Taxes are the nation’s lifeblood through which government sovereignty. It is the strongest of all the powers of the government. The
agencies continue to operate and with which the State Constitution sets forth such limits.
discharges its functions for the welfare of its constituents. Inherent and Constitutional Limitations
B
4. Taxes = levied to raise revenues; Licenses = imposed for Power of Taxation as Distinguished of Taxation
regulatory purpose. A from Police Power and Eminent
5. In Angeles University Foundation v. City of Angeles, SC held Domain Inherent Limitations
that the payment of building permit fee is a regulatory
1) Public Purpose. — has now evolved to include social 1. The public funds must be derived from taxation; b. TAXABLE — GOCCs with special charter;
justice. personality distinct from the government;
2. Does not apply to donations and contributions made by
incorporated
Determination that the tax is for public purpose public individuals or private entities;
3. Taxpayer is not relieved from the obligation to pay tax just 3) Non-delegation
a. Used for the support of the government, speci cally
on its governmental functions; because of his belief that it is being misappropriated; Matters which cannot be delegated
b. For any of the recognized objects of the government; 4. A taxpayer has no legal standing to question acts which do 1. Nature of taxation;
not involve the use of public funds.
c. Promotes the welfare of the community. 2. Object and purpose;
2) Exemption from taxation of Government entities
d. Public purpose is determined at the time of the 3. Subject or coverage;
enactment of the tax law and not at the time of its Refers only to real property tax.
implementation. 4. Amount or rate of tax;
GR: Agencies and instrumentalities of the government
performing governmental functions are tax exempt. If 5. Manner, means and agencies of collection;
Planters Products, Inc. v. Fertiphil performing proprietary functions, taxable. 6. Situs.
Public purpose is the heart of a tax law. When a tax law is only a EXC: Even if performing proprietary functions, if the
mask to exact funds from the public when its true intent is to give franchise or law creating them exempts them — tax Abakada Guro Party List v. Ermita
undue bene t and advantage to a private enterprise, that law will exempt.
not satisfy the requirement of “public purpose.” The general rule barring delegation of legislative powers is subject to
If taxing authority is LGU the following recognized limitations or exceptions:
The purpose of a law is evident from its text or inferable from other
a. TAX EXEMPT — GOCCs with original charter; 1) Delegation of tari powers to the President under Section
secondary sources. Here, the levy imposed under LOI No. 1465 was
attached to the government; unincorporated; 28 (2) of Article VI of the Constitution;
not for a public purpose.
Exempt from Income Tax 2) Delegation of emergency powers to the President under
Requisites of a Valid Taxpayer’s Suit Section 23 (2) of Article VI of the Constitution;
1. GSIS
1. The tax money is being extracted and spent in violation of 3) Delegation to the people at large;
2. SSS
speci c constitutional protection against abuses of
legislative power; 3. PHIC 4) Delegation to local governments; and
2. Public money is being de ected to any improper purpose; 4. PCSO 5) Delegation to administrative bodies.
3. Petitioner seeks to restrain wastage of public funds 5. PAGCOR (but not exempted from business The case before the Court is not a delegation of legislative power. It
through enforcement of an invalid law. tax) is simply a delegation of ascertainment of facts upon which
enforcement and administration of the increase rate under the law is
Important Concepts Regarding Taxpayer’s Suit
Hence, it is useless to impose a tax which could not be

contingent. The authority of the President, upon the recommendation of
collected.
NEDA, to x tari rates, import and export quotas, tonnage and
It is the ministerial duty of the President to immediately impose
wharfage dues, and other duties or imposts. [Sec 28(2) Art VI, 3. Usage among states — when a foreign sovereign enters
the 12% rate upon the existence of any of the conditions speci ed by
1987 Constitution] the territorial jurisdiction of another, there is an implied
Congress. This is a duty which cannot be evaded by the President.
understanding that the former does not intend to degrade
There is no undue delegation of legislative power but only of the Delegation to Administrative Bodies
its dignity by placing itself under the jurisdiction of
discretion as to the execution of a law. This is constitutionally
1. Power to value property for purposes of taxation; another.
permissible.
2. Power to assess and collect taxes;
5) Situs
Delegation to LGU
3. Power to perform an innumerable details of computation,
GR: Taxation may be exercised only within the territorial
Only provinces and cities are allowed to impose a tax on the appraisal and adjustment.
jurisdiction of the taxing authority.
transfer of ownership of real property.
Southern Cross Cement Corporation v. CMAP EXC: Where privity of relationship exists.
NPC v. City of Cabanatuan
The Court recognizes that the authority delegated to the President Direct Constitutional Limitations
The power to tax is no longer vested exclusively on Congress; local under Section 28(2), Article VI may be exercised, in accordance
legislative bodies are now given direct authority to levy taxes, with legislative sanction, by the alter egos of the President, such 1. Revenue bill must originate exclusively in the House of
fees and other charges pursuant to Art X Sec 5 of the 1987 as department secretaries. Representatives but the Senate may propose
Constitution. amendments. (Sec 24(4) Art VI)
There is only one viable ground for challenging the legality of the
To determine whether the petitioner is covered by the franchise tax limitations and restrictions imposed by Congress under Section It is not the statute that must originate in the HREP but the
in question, the following requisites should concur: 28(2) Article VI, and that is such limitations and restrictions are bill.
themselves violative of the Constitution. Thus, no matter how
1) that petitioner has a “franchise” in the sense of a secondary
distasteful or noxious these limitations and restrictions may seem, Abakada Guro Party List v. Ermita
or special franchise; and
the Court has no choice but to uphold their validity unless their Article VI, Section 24 of the Constitution does not contain any
2) that it is exercising its rights or privileges under this constitutional in rmity can be demonstrated. prohibition or limitation on the extent of the amendments that may
franchise within the territory of the respondent city
be introduced by the Senate to the House revenue bill.
government. 4) International Comity
Likewise, the Court nds the sections referring to other percentage
Ful lling both requisites, petitioner is, and ought to be, subject of 1. Doctrine of sovereign equality among states — as
and excise taxes germane to the reforms to the VAT system, as
the franchise tax in question. To stress, a franchise tax is imposed between equals, there is no sovereign. One state cannot
these sections would cushion the effects of VAT on consumers.
based not on the ownership but on the exercise by the exercise its sovereign powers over another.
corporation of a privilege to do business.
2. Non-suability of States — under international law, a
Delegation to the President foreign government may not be sued without its consent.
2. Concurrence of a majority of all the members of b. Incidental;

In this case, the tax law is uniform as it provides a standard rate of
Congress for the passage of a law granting tax exemption
0% or 10% (or 12%) on all goods and services. The rule of uniform c. Reasonably necessary for the accomplishment of said
(Sec 28(4) Art VI)
taxation does not deprive Congress of the power to classify purpose.
Votes required subjects of taxation, and only demands uniformity within the
6. Exemption of non-stock, non-pro t educational
particular class.
a. For the GRANT of tax exemption — absolute institutions from taxation
majority of the members of Congress (50+1 of all the Taxation is progressive when its rate goes up depending on the
Summary for Charitable, Religious and Educational Entities
members voting separately) resources of the person a ected. The VAT is an antithesis of
progressive taxation. By its very nature, it is regressive. Charitable or Non-Stock, Non-Pro t
b. For WITHDRAWAL of tax exemption — relative Religious Educational
majority or majority of the quorum. Nevertheless, the Constitution does not really prohibit the
imposition of indirect taxes, like the VAT. What it simply provides is Real Exempt from RPT If used ADE for intended
3. Rule of uniformity and equity in taxation
that Congress shall "evolve a progressive system of taxation." Property purpose.
Valid Classification
a. It is based upon substantial distinctions which 5. Exemption of religious, charitable and educational Income Exempt from Income Tax
make real di erences; entities, nonpro t cemeteries, and churches from
property taxation (Sec 28(3) Art VI) Revenues from
b. These are germane to the purpose of the legislation Income from properties properties or activities
or ordinance; Important Principles Income from or activities conducted conducted FOR pro t
a. The tax exemption of religious, charitable and Property FOR pro t are taxable that are ADE for
c. Applies, not only to present conditions, but, also, to
educational institutions covers real property tax regardless of disposition educational purposes are
future conditions substantially identical to those of
only. tax-exempt.
the present;
d. Applies equally to all those who belong to the same b. The test is usage and not ownership. — Actual, 7. Non-imprisonment for non-payment of a poll tax (Sec 20
class. direct, and exclusive use for religious, charitable and Art III)
educational purposes.
4. Progressive system of taxation Poll tax is a tax of a xed amount xed on persons residing
c. The exemption extends to facilities which are within a speci ed territory, whether resident or not, without
Abakada Guro Party List v. Ermita incidental to or reasonably necessary for the regard to their property or the occupation of business in
accomplishment of said purpose. which they may be engaged.
Uniformity in taxation means that all taxable articles or kinds of
Scope of exemption. Real property taxes on facilities which 8. Non-impairment of the jurisdiction of the SC in tax
property of the same class shall be taxed at the same rate. Di erent
are: cases (Sec 5(2) Art VIII)
articles may be taxed at di erent amounts provided that the rate is
uniform on the same class everywhere with all people at all times. a. Actual; The Supreme Court shall have the following powers: (2)
Review, revise, modify or a rm on appeal or certiorari, as the
laws or the Rules of Court may provide, nal judgments and

b. Revenue bill; 1. Compelling State Interest Test – State balances the
orders of lower courts in xxx (b) all cases involving the
public interest against religious freedom. The need to
legality of any tax, impost, assessment or toll or any c. Tari bill.
advance the constitution and public interest. In case
penalty imposed in relation thereto.
there are less restrictive means to advance a right
CIR v. CTA, Manila Golf & Country Club
9. Prohibition on the use of special fund (Sec 29(3) Art VI) under the constitution.
All money collected on any tax levied for a special purpose An “item” in a revenue bill does NOT refer to an entire 2. Rational Basis Test – The classi cation is valid if it
shall be treated as a special fund and paid out for such purpose section imposing a particular kind of tax, but rather to the subject is rationally related to a constitutionally permissible
only. If the purpose for which a special fund was created has of the tax and the tax rate. In the portion of a revenue bill which state interest. e.g. Senior Citizens Act
been ful lled or abandoned, the balance, if any, shall be actually imposes a tax, a section identi es the tax and enumerates
3. Quasi-Suspect Case – Available if needed. Based on
transferred to the general funds of the Government. the persons liable therefor with the corresponding tax rate.
gender/legitimacy. It points out a speci c
To construe the word “item” as referring to the whole section would constitutionally granted state interest such as
PKSMMN, et al. v. Executive Secretary 2012 En Banc
tie the President’s hand in choosing either to approve the whole protection of women where there is a valid
Coco-levy funds are not only a ected with public interest; they are, section at the expense of also approving a provision therein which classi cation between men and women.
in fact, prima facie public funds. They were raised with the use of he deems unacceptable or veto the entire section at the expense of
3) Non-impairment of the obligations of contracts
the police and taxing powers of the State for the bene t of the foregoing the collection of the kind of tax altogether.
a. If the exemption was granted for a valuable
coconut industry and its farmers in general.
consideration on the basis of a contract – it cannot be
E.O. 313 runs counter to the constitutional provision which directs revoked by passing another law. The non-impairment
Indirect Constitutional Limitations
that all money collected on any tax levied for a special purpose shall clause applies.
be treated as a special fund and paid out for such purpose only. 1) Due process of law. — The validity of a statute must be
b. If the exemption is granted by virtue of a contract
Assisting other agriculturally-related programs is way off the contested only by one who sustained or stands to sustain direct
between a private corporation and the government – it
coco-fund’s objective of promoting the general interests of the coconut injury in consequence of its performance
cannot be revoked unilaterally by the government. The
industry and its farmers.
EXC: Transcendental importance, taxpayer‘s suit. non-impairment clause applies.
10. Power of the President to veto any particular items in a 2) Equal protection of the laws c. If the basis of the tax exemption is a mere franchise
revenue or tari bill granted by Congress – it can be unilaterally revoked by
a. All persons, businesses, and properties should be taxed at
GR: The President has to approve or disapprove a bill in its the same rate, so long as they belong to the same the government. NIC does not apply.
entirety. classi cation. Equality among equals. 4) Non-infringement of religious freedom
EXC where partial or item veto is allowed b. Does not require territorial uniformity of laws. (Tiu v CA) The free exercise of religion clause, however, does not prohibit
a. Appropriation bill; TESTS TO DETERMINE VALID CLASSIFICATION imposing a generally applicable sales tax on the sale of religious
materials by religious organizations. The sale of religious
articles can be subject to VAT, what cannot be taxed is the

Certainly, an income tax is arbitrary and con scatory if it taxes 5) Levied by the State which has jurisdiction over the
exercise of religious worship or activity. The income of the
capital because capital is not income. In other words, it is income, subject or object of taxation;
priest from the exercise of a religious activity cannot also be
not capital, which is subject to income tax. However, the MCIT is
taxed. (Tolentino v. SOF) 6) Levied by the lawmaking body of the State;
not a tax on capital.
7) For public purpose.
American Bible Society v. City of Manila The MCIT is imposed on gross income which is arrived at by
deducting the capital spent by a corporation in the sale of its goods, Requisites for a Valid Tax (PUJ-DL)
We believe that the provisions of City of Manila Ordinance No. i.e., the cost of goods and other direct expenses from gross sales. 1) It must be for a Public purpose;
2529, as amended, cannot be applied to appellant, for in doing Clearly, the capital is not being taxed.
so it would impair its free exercise and enjoyment of its religious 2) The rule on taxation should be Uniform;
No violation of Equal Protection
profession and worship as well as its rights of dissemination of 3) Subject taxed must be within the Jurisdiction of the taxing
religious beliefs. The taxing power has the authority to make reasonable
authority;
classi cations for purposes of taxation. Inequalities which result
With respect to Ordinance No. 3000, as amended, which requires 4) The assessment and collection must be in consonance with the
from a singling out of one particular class for taxation, or
the obtention of the Mayor's permit before any person can
exemption, infringe no constitutional limitation. The real estate Due process clause;
engage in any of the businesses, trades or occupations enumerated
industry is, by itself, a class and can be validly treated 5) The tax must not infringe the inherent and constitutional
therein, We do not nd that it imposes any charge upon the
differently from other business enterprises. Limitations of the power of taxation.
enjoyment of a right granted by the Constitution, nor tax the
exercise of religious practices.
Tax as Distinguished from Other Forms
5) No appropriation for religious purposes C Requisites of a Valid Tax D
of Exactions
GR: No appropriation is allowed in favor of any sect,
Essential Characteristics and Attributes of Taxes If they are not considered taxes, the requirements for a valid tax
church, or any priest, minister, etc.
(PUJ-DL) need not be complied with.
EXC: When such priest is assigned to the armed forces, 1) Enforced contribution - independent of the will of taxpayer;
penal institution or government orphanage or 1) License is in the nature of a special privilege, or authority to
2) Generally payable in money; do what is within its terms. It makes lawful an act which
leprosarium.
EXC: would otherwise be unlawful. A license granted by the State is
6) Non-infringement of the freedom of the press always revocable. Primary purpose test (To be considered a
a. Tax credit certi cate or back pay certi cate;
There is curtailment of press freedom and freedom of thought license fee)
and expression if a tax is levied in order to suppress this basic b. Tax liens.
a. must relate to an occupation or activity that so
right and impose prior restraint. 3) Proportionate in character — ability to pay. engages the public interest in health, morals,
4) Levied on persons, property, exercise of a right or development and safety, as to require regulation for
CREBA v. Romulo 2010 En Banc the protection and promotion of such public interest.
privilege, act or transactions;
b. must bear a reasonable relation to the probable AS TO SUBJECT MATTER OR OBJECT AS TO PURPOSE
expenses of regulation, taking into account not only
a. Personal, Poll, or Capitation – tax imposed on persons a. General, Fiscal or Revenue – tax levied for the general or
the costs of direct regulation but also its incidental
residing within a speci ed territory, whether citizens or not, ordinary purposes of the government, i.e. raise revenue for
consequences as well.
without regard to their property or the occupation or business governmental and public needs. These funds can be used for
2) Toll is a sum of money for the use of something, generally in which they may be engaged. e.g. Community tax whatever purpose. e.g. Income tax, VAT, and almost all taxes.
applied to the consideration which is paid for the use of a road, b. Property – tax levied on property, real or personal, in b. Special or Regulatory – tax levied for special purposes, i.e.
bridge or the like, of a public nature. proportional to its value or in accordance with some rule of to achieve some social or economic ends, irrespective of
3) Compromise penalty is the amount collected by the BIR in apportionment. e.g. Real estate tax whether revenue is actually raised or not. TN: These funds can
lieu of criminal prosecution for violations committed by be used only for the speci c purpose which the law creating it
c. Excise – tax imposed upon the performance of an act, the
taxpayers. indicated.
enjoyment of a privilege, or the engagement in an occupation
4) Special assessment is a charge imposed on lands especially or business. E.g. Income tax, donor‘s tax, estate tax AS TO SCOPE OR AUTHORITY IMPOSING THE TAX
bene ted by public works or improvements nanced by the AS TO BURDEN OR INCIDENCE a. National – taxes imposed by the national government e.g.
government. It is not a personal liability of the person assessed. NIR taxes, customs duties, national taxes imposed by laws
a. Direct – tax demanded from the very person who, as intended
His liability is limited only to the land involved. It is based
should pay the tax which he cannot shift to another. e.g. b. Municipal or Local – taxes provided in the LGC and
wholly on bene ts and not necessity.
Income tax, estate tax, donor‘s tax, community tax imposed by local governments. e.g. Business taxes imposed
5) Revenue refers to all funds or income derived by the under the LGC
b. Indirect – tax demanded in the rst instance from one person
government, whether from tax or from whatever source and
with the expectation that he can shift the burden to someone AS TO GRADUATION
whatever manner.
else, not as taxes, but as part of the purchase price. e.g. VAT,
a. Proportion – based on a xed percentage of the amount of
6) Customs Duties is a tax levied on imports (and, sometimes, percentage tax, excise tax, customs duties
the property receipts or other basis to be taxed. e.g. Real estate
on exports) by the customs authorities of a country to raise AS TO TAX RATE tax, corporate tax ( xed at 30% regardless of how much income
state revenue, and/or to protect domestic industries from more the corporation earns)
e cient or predatory competitors from abroad. a. Specific – tax imposed by the head or number, or by some
standard of weight or measurement. e.g. Wines, fermented b. Progressive – rate of which increases as the tax base or bracket
7) Tari is a tax imposed on imported goods and services. liquors, etc. increases. e.g. Income tax
Tari s are used to restrict trade, as they increase the price of
b. Ad valorem – tax of a xed proportion of the value of the Digressive - started as progressive but becomes stagnant at
imported goods and services, making them more expensive to
property with respect to which the tax is assessed. e.g. Income some point.
consumers. They are one of several tools available to shape
tax, real estate tax, excise tax on automobiles
trade policy. c. Regressive – tax rate decreases as the tax base or bracket
c. Mixed – Basis of the tax is the value of the article and weight. increases. e.g. VAT (regressive as to its e ect)
E Kinds of Taxes e.g. Customs duties
F Doctrines in Taxation of the CTA the collection thereof may jeopardize a. Statute provides for the liberal construction thereof;
the interest of the government and/or the taxpayer.
b. Special taxes relating to special cases and a ecting only special
Taxes are the lifeblood of the government and their
1.4. Here, respondent only proceeded with its petition after cases;
prompt and certain availability is an imperious need. Without
receiving tax assessments from the BIR and after various
taxes, the government would be paralyzed for lack of motive power c. Exemptions refer to public property;
requests for reconsideration, where it notably already raised
to activate and operate it. d. Exemptions granted to religious, charitable and educational
the alleged unconstitutionality of Sections 108 and 184 of
Its collection should be made in accordance with law as any the NIRC as a ground to contest the tax assessment. institutions or their property;
arbitrariness will negate the very reason for government itself. e. Exemptions in favor of the government, its political
See Remedial Law Case Digest No. 49
subdivisions or instrumentalities.
CIR v. Standard Insurance 28 Apr 2021
The RTC acted without jurisdiction in taking cognizance of the MCIAA v. Marcos
Construction and Interpretation of Tax Laws,
Petition for Declaratory Relief and issuing an injunction against the 1
Rules, and Regulations Since taxation is the rule and exemption therefrom the exception,
collection of taxes. the exemption may thus be withdrawn at the pleasure of the
Internal revenue laws are not political in nature. Tax laws are civil taxing authority. The only exception to this rule is where the
1.1. CA 55 provides that petitions for declaratory relief do not
apply to cases where a taxpayer questions his liability for the and not penal in nature. Even if there is change in government exemption was granted to private parties based on material
payment of any tax under any law administered by the BIR. control, it remains to be implemented. consideration of a mutual nature, which then becomes
GR: In case of doubt, tax laws are to be construed strictly contractual and is thus covered by the non-impairment
1.2. Thus, the courts have no jurisdiction over petitions for
clause of the Constitution.
declaratory relief against the imposition of tax liability or against the government and liberally in favor of the
validity of tax assessments. taxpayer.
1.3. Taxes being the lifeblood of the government should be EXC:

CIR v. Acosta
collected promptly, without unnecessary hindrance or a. Where the language of the statute is plain and there is no
delay. Tax refunds are in the nature of tax exemptions which are
doubt as to the legislative intent.
construed strictissimi juris against the taxpayer and liberally in
1.3.1. Section 218 of the NIRC expressly provides that b. Where the taxpayer claims exemption from taxation. favor of the government. Tax laws are prospective in operation,
no court shall have the authority to grant an
As to Tax Exemptions unless the language of the statute clearly provides otherwise.
injunction to restrain the collection of any national
internal revenue tax, fee or charge imposed by the GR: In case of doubt, tax exemptions are to be construed strictly Revenue statutes are substantive laws and in no sense must their
code. against the taxpayer and liberally in favor of the taxing application be equated with that of remedial laws. As well said in a
prior case, revenue laws are not intended to be liberally construed.
1.3.2. An exception to this rule, provided under Section authority.
Considering that taxes are the lifeblood of the government, tax laws
11 of RA 1125, obtains only when in the opinion EXC:
must be faithfully and strictly implemented. 4. But in the SC, it should only be purely questions of law. 3 Imprescriptibility of Taxes
As a rule, taxes are imprescriptible as they are the lifeblood of the
2 Prospectivity of Tax Laws
government. However, tax laws may provide for statute of
KEPCO v. CIR 2011
APPLICATION OF TAX LAWS limitations.
WON Kepco's failure to imprint the words "zero-rated" on its official GR: Tax laws are prospective in operation because the nature and
4 Double Taxation
receipts issued to NPC justifies an outright denial of its claim for amount of the tax could not be foreseen and understood by
refund of unutilized input tax credits. the taxpayer at the time the transactions which the law seeks to 1. Strict Sense — DIRECT
tax were completed.
YES. The imprinting of "zero-rated" is necessary to distinguish Requisites
sales subject to 10% VAT, those that are subject to 0% VAT EXC: While it is not favored, a statute may nevertheless operate
a. Same subject/object taxed twice;
(zero-rated) and exempt sales. Said revenue regulation is merely a retroactively provided it is expressly declared or is clearly the
precautionary measure to ensure the e ective implementation of the legislative intent. b. For the same purpose;
Tax Code. As a matter of fact, the provision of Section 4.108-1 of EXC to the EXC: c. By the same taxing authority;
R.R. 7-95 was incorporated in Section 113 (B)(2)(c) of R.A. No.
A tax law should not be given retroactive application when it d. Within the same jurisdiction;
9337. This, in e ect, and as correctly concluded by the CIR,
con rms the validity of the imprinting requirement on VAT would be so harsh and oppressive, for in such case, the e. During the same period; AND
invoices or o cial receipts even prior to the enactment of R.A. 9337 constitutional limitation of due process would be violated.
f. Of the same kind or character.
under the principle of legislative approval of administrative Non-retroactivity of repeal of regulations or rulings
2. Broad Sense — INDIRECT
interpretation by reenactment.
GR: No retroactivity if the repeal, revocation, modi cation or
if any of the elements for direct duplicate taxation is absent.
reversal of regulations or rulings is prejudicial to the taxpayer.
Not prohibited.
Important Concepts on Jurisdiction EXC:
1. Where the taxpayer deliberately misstates or omits material CIR v. Solidbank
1. Follow the hierarchy of the courts;
facts from his return or in any document required of him by
2. If it is a question pertaining to the constitutionality of a ruling Double taxation means taxing the same property twice when it
the BIR;
or IRR, raise it immediately before the regular courts; should be taxed only once; that is, "taxing the same person twice by
2. Where the facts subsequently gathered by the BIR are the same jurisdiction for the same thing."
3. But if it pertains to questions on the tax payable materially di erent from the facts on which the ruling is
computations, question it rst with the BIR (Administrative First, the taxes herein are imposed on two di erent subject
based;
level) then appeal it to the CIR (depends on the amount), then matters. The subject matter of the FWT is the passive income
after it can be appealed later to the Sec of Finance or CTA, and 3. Where the taxpayer acted in bad faith. generated in the form of interest on deposits and yield on deposit
then after, that‘s the time you can go the SC. substitutes, while the subject matter of the GRT is the privilege of
engaging in the business of banking. 1. A method of establishing equality of trading opportunity residence, although in some instances it may be taken into
among states by guaranteeing that if one country is given account in determining the rate of tax applicable to the
Second, the taxing periods they a ect are di erent. The FWT is
better trade terms by another, then all other states must get the taxpayer's remaining income or capital.
deducted and withheld as soon as the income is earned, and is paid
same terms.
after every calendar quarter in which it is earned. On the other hand, On the other hand, in the credit method, although the
the GRT is neither deducted nor withheld, but is paid only after 2. The ling of a tax treaty relief application is not a income or capital which is taxed in the state of source is still
every taxable quarter in which it is earned. condition precedent to the availment of a preferential tax rate. taxable in the state of residence, the tax paid in the former is
The denial of the availment of tax relief for the failure of a credited against the tax levied in the latter.
Third, these two taxes are of di erent kinds or characters. The
taxpayer to apply within the prescribed period under the
FWT is an income tax subject to withholding, while the GRT is a The basic di erence between the two methods is that in the
administrative issuance would impair the value of the tax
percentage tax not subject to withholding. exemption method, the focus is on the income or capital itself,
treaty. At most, the application for a tax treaty relief from the
whereas the credit method focuses upon the tax.
Domestic double taxation — arises when the taxes are imposed by BIR should merely operate to con rm the entitlement of the
the local or the national government. taxpayer to the relief. (Deutsche Bank)
International double taxation — imposition of comparable taxes in Tax Treaties as Relief from Double Taxation 5 Escape from Taxation
two or more states on the same taxpayer with respect to the same
subject matter and for an identical period. CIR v. S.C. Johnson and Son
HOW TO ELIMINATE? The RP-US Tax Treaty is just one of a number of bilateral treaties a Shifting of Tax Burden
1. Allowing reciprocal exemption either by law or by treaty which the Philippines has entered into for the avoidance of double a. Tax burden is transferred from the statutory taxpayer to
taxation. The purpose of these international agreements is to another without violation of law.
2. Allowance of tax credit for foreign taxes paid reconcile the national scal legislations of the contracting
Tax Credit – deduction from tax payable. It reduces the parties in order to help the taxpayer avoid simultaneous b. Statutory taxpayer. the original taxpayer required under the
amount payable directly. It is a full deduction of the amount taxation in two di erent jurisdictions. More precisely, the tax law to pay the tax.
paid abroad. This is the best option. conventions are drafted with a view towards the elimination of c. Impact of taxation. The point on which a tax is originally
international juridical double taxation, which is de ned as the imposed.
3. Allowance of deduction for foreign taxes paid
imposition of comparable taxes in two or more states on the same
Tax Credit – deduction from taxable income. The amount of d. Incidence of taxation. That point on which the tax burden
taxpayer in respect of the same subject matter and for identical
taxes paid abroad is used to reduce tax payable in the nally rests or settles down.
periods.
Philippines. Here, the amount paid abroad is multiplied by the Kinds:
There are two methods of relief — the exemption method and the
tax rate in the Philippines.
credit method. a. Forward shifting – the transfer of the burden of tax
4. Reduction of Philippine tax rate from the units of production to the units of
In the exemption method, the income or capital which is
MOST FAVORED NATION CLAUSE distribution to the consumer. E.g. VAT, percentage tax
taxable in the state of source or situs is exempted in the state of
b. Backward shifting – The transfer of the burden of Broad Sense – Tax not applied on a particular property. Tax on TN: To encourage new industries or to foster charitable
tax from the consumer back to the units of particular property or object within the same jurisdiction but not institutions. Here, the government need not receive any
distribution to the units of production. taxed by the taxing authority. e.g. Tax on property used by the consideration in return for the tax exemption
Government when the other properties in the same area are subject
c. Onward shifting – When the tax is shifted two or c. It may be created in a treaty on grounds of reciprocity or to
to tax.
more times either forward or backward. More than lessen the rigors of international or multiple taxation.
one shift. Narrow Sense – Exemption of a particular class. An entire class of
TN: Recognition of international comity.
the same conditions are exempted from taxes supposedly imposed
b Tax Avoidance CONSTRUCTION OF TAX EXEMPTION STATUTES
on a bigger class.
Exploitation by the taxpayer of legally permissible alternative tax GR: Tax exemption statutes are construed strictly against the
Important principles
rates or methods of assessing taxable property or income in order taxpayer and liberally in favor of the government.
to avoid or reduce tax liability. e.g. estate planning. a. It is an immunity or privilege that is personal in nature;
a. In the construction of tax statutes, in case of doubt,
c Tax Evasion b. It is freedom from a nancial charge or burden to which
exemptions are not favored and are construed strictissimi juris
others are subjected;
against the taxpayer.
Elements of Tax Evasion (How to Establish Tax Evasion)
c. Allowed only when there is a clear provision of the law;
b. The fundamental theory is that all taxable property should
a. The end to be achieved is to lessen payment of taxes Example:
d. Strictly construed against the taxpayer; bear its share in the cost and expenses of the government.
the payment of less than that known by the taxpayer to be
legally due, or in paying no tax when such is due. e. It is not necessarily discriminatory as long as there is a c. Taxation is the rule and exemption the exception, and
reasonable foundation or rational basis. therefore, he who claims exemption must be able to justify his
b. An accompanying state of mind described as being “evil”, “in
claim or right thereto, by a grant expressed in terms ― too
bad faith”, “willful” or “deliberate and not accidental” DOUBLE NEXUS RULE. Person claiming exemption must prove:
plain to be mistaken and too categorical to be misinterpreted.
c. A course of action (or failure of action) which is unlawful. 1. The law granting the exemption; AND
d. Claims for an exemption must be able to point out some
(CIR v. Estate of Toda) 2. That he falls within the law or is quali ed in the exemption. provision of law creating the right, and cannot be allowed to
Indicia of Fraud GROUNDS FOR TAX EXEMPTION exist upon a mere vague implication or inference.
a. Failure to declare true and actual income derived from a. It may be based on contract. When the charter provides for e. Refunds are in the nature of exemption, and must be
business for 2 consecutive years; OR such exemption. construed strictly against the grantee/taxpayer.
b. Substantial under-declaration of ITR for 4 consecutive years TN: In such a case, the public which is represented by the EXC:
coupled with intentional overstatement of deductions. government is supposed to receive a full equivalent therefor. a. When the law itself expressly provides for a liberal
b. It may be based on some ground of public policy. The construction, that is, in case of doubt, it shall be resolved in
6 Exemption from Taxation
exemption is provided in the law itself or the constitution. favor of exemption.
b. When the exemption is in favor of the government itself or CIR v. The Phil-American Accident Insurance Company
its agencies, or of religious, charitable, and educational
The rule that tax exemptions should be construed strictly against the Lung Center of the Philippines v. Quezon City
institutions because the general rule is that they are exempt
taxpayer presupposes that the taxpayer is clearly subject to the tax
from tax. Portions of the land leased to private entities as well as those parts of
being levied against him. Unless a statute imposes a tax clearly,
the hospital leased to private individuals are NOT exempt from
c. When the exemption is granted under special circumstances to expressly and unambiguously, what applies is the equally well-settled
such taxes. On the other hand, the portions of the land occupied by
special classes of persons. rule that the imposition of a tax cannot be presumed. Where
the hospital and portions of the hospital used for its patients,
d. If there is an express mention or if the taxpayer falls within there is doubt, tax laws must be construed strictly against the
whether paying or non-paying, are exempt from real property taxes.
the purview of the exemption by clear legislative intent, the government and in favor of the taxpayer.
In order to be entitled to the exemption, the petitioner is burdened
rule on strict construction does not apply. In this case, petitioner does not dispute that respondents are in the
to prove, by clear and unequivocal proof, that
e. If exemption refers to public property (in case of public insurance business. Petitioner merely alleges that the de nition of
lending investors under CA 466 is broad enough to encompass a) it is a charitable institution; and
property, the general rule is exemption and taxation is the
exception) insurance companies. The question is whether the lending activities b) its real properties are ACTUALLY, DIRECTLY and
of insurance companies make them lending investors for purposes EXCLUSIVELY used for charitable purposes.
f. Solutio indebiti
of taxation. We agree with the CTA and Court of Appeals that it
What is meant by actual, direct and exclusive use of the property for
RESTRICTIONS ON REVOCATION OF TAX EXEMPTION does not.
charitable purposes is the direct and immediate and actual
a. Non-impairment clause – Applies in contractual tax application of the property itself to the purposes for which
exemptions or those agreed to by the taxing authority in the charitable institution is organized. It is not the use of the
contracts, such as those contained in government bonds or PAGCOR v. BIR 2011 En Banc
income from the real property that is determinative of whether the
debentures, lawfully entered into by them under enabling laws property is used for tax-exempt purposes.
WON PAGCOR is still exempt from corporate income tax and VAT
in which the government, acting in its private capacity, sheds
with the enactment of R.A. No. 9337. NO. Petitioner is no longer
its cloak of authority and waives its governmental immunity.
exempt from corporate income tax as it has been e ectively
b. Adherence to form – If the exemption is granted by the omitted from the list of GOCCs that are exempt from it. John Hay People’s Alternative Coalition, et al. v. Lim
Constitution, it can only be revoked through a Constitutional
In Manila Electric Company v. Province of Laguna, the Court Under Section 12 of R.A. No. 7227, it is only the Subic SEZ which
amendment. It cannot be revoked by mere passage of a law.
held that a franchise partakes the nature of a grant, which is beyond was granted by Congress with tax exemption, investment incentives
c. Tax-exempting grant is in the form of a special law – the purview of the non-impairment clause of the Constitution. and the like. There is no express extension of the aforesaid bene ts
where the grant is given through a special law and not by a to other SEZs still to be created at the time via presidential
Anent the validity of RR No. 16-2005, the Court holds that the
general law, even if the terms of the general act are broad proclamation.
provision subjecting PAGCOR to 10% VAT is invalid for being
enough to include the intent to repeal or alter the special law,
contrary to R.A. No. 9337. Nowhere in R.A. No. 9337 is it
there would still be no revocation.
provided that petitioner can be subjected to VAT.
Smart Communications v. The City of Davao Air Canada v. CIR 2016 9 Compromise and Tax Amnesty
WON Smart is liable to pay the franchise tax imposed by the City of The issue of petitioner's claim for tax refund is intertwined with
Davao. the issue of the proper taxes that are due from petitioner. A claim
for tax refund carries the assumption that the tax returns led were Kepco Philippines v. CIR 2020
YES. The uncertainty in the "in lieu of all taxes" clause in R.A. No.
correct. In South African Airways v. CIR, South African Airways The CIR may compromise an assessment when a reasonable
7294 on whether Smart is exempted from both local and national
claimed for refund of its erroneously paid 2 1/2% taxes on its gross doubt as to the validity of the claim against the taxpayer exists, or
franchise tax must be construed strictly against Smart which
Philippine billings. This court did not immediately grant South the nancial position of the taxpayer demonstrates a clear inability
claims the exemption.
African's claim for refund. This is because although this court to pay the tax.
In this case, the doubt must be resolved in favor of the City of found that South African Airways was not subject to the 2 1/2% tax
Davao. The "in lieu of all taxes" clause applies only to national on its gross Philippine billings, this court also found that it was As to whether the CIR properly accepted Kepco's o er for a
internal revenue taxes and NOT to local taxes. subject to 32% tax on its taxable income. compromise because "the assessment is lacking in legal and/or
factual basis," the general rule is that the authority of the CIR
to compromise is purely discretionary and the courts cannot
interfere with his exercise of discretionary functions, absent grave
7 Equitable Recoupment SMI-ED Philippines Technology v. CIR 2014
abuse of discretion. Here, no grave abuse of discretion exists. Kepco
Where the refund of a tax illegally or erroneously collected from or In an action for the refund of taxes allegedly erroneously paid, the complied with the procedures prescribed under the BIR rules on the
overpaid by a taxpayer is barred by prescription, a tax presently Court of Tax Appeals may determine whether there are taxes that application and approval of compromise settlement on the ground
being assessed against a taxpayer may be recouped or set-o . should have been paid in lieu of the taxes paid. Determining the of doubtful validity.
NB: INAPPLICABLE. proper category of tax that should have been paid is not an
assessment. It is incidental to determining whether there should be Amnesty Exemption
a refund.
8 Prohibition on Compensation and Set-O
Immunity from ALL Immunity from CIVIL
A PEZA-registered corporation that has never commenced
GR: Taxation is not subject to set-o . liabilities liabilities only
operations may not avail the tax incentives and preferential
EXC: When both debts are due and demandable and have been rates given to PEZA-registered enterprises. Such corporation is A general pardon to all A privilege, a freedom
fully liquidated, and the amount due the taxpayer has subject to ordinary tax rates. taxpayers from a charge or burden of
already been appropriated by law, compensation follows The amount of the taxpayer’s liability should be computed and which others are subjected
by operation of law. deducted from the refundable amount. Any liability in excess of the
refundable amount, however, may not be collected in a case Of retroactive application Generally prospective
TN: There can be no compensation as the Government and
the people are not principal debtors and creditors of each involving solely the issue of the taxpayer’s entitlement to refund.
other.
Asia International Auctioneers, Inc. v. CIR 2012
A tax amnesty is a general pardon or the intentional overlooking Here, respondent has successfully availed itself of the tax amnesty amnesty with respect to its withholding tax
by the State of its authority to impose penalties on persons bene ts granted under R.A. No. 9480. The CIR, however, insists liabilities.
otherwise guilty of violating a tax law. It partakes of an absolute that respondent is still liable for de ciency taxes, contending that
1.3. A tax amnesty, much like a tax exemption, is never favored
waiver by the government of its right to collect what is due it and to under RMC No. 19-2008, respondent is disquali ed to avail of the
or presumed in law.
give tax evaders who wish to relent a chance to start with a clean tax amnesty because it falls under the exception of "delinquent
slate. accounts or accounts receivable considered as assets by the BIR or 1.3.1. It must be construed strictly against the taxpayer
the Government, including self-assessed tax." and liberally in favor of the taxing authority.
A tax amnesty, much like a tax exemption, is never favored or
presumed in law. The grant of a tax amnesty, similar to a tax In implementing tax amnesty laws, the CIR cannot now insert an 1.4. However, with respect to the de ciency taxes pertaining to
exemption, must be construed strictly against the taxpayer and exception where there is none under the law. Indeed, a tax CEDCO's income tax and VAT for taxable years for 2000
liberally in favor of the taxing authority. amnesty must be construed strictly against the taxpayer and liberally and 2001, CEDCO is entitled or quali ed to avail of the tax
in favor of the taxing authority. However, the rule-making power of amnesty considering that it had submitted the necessary
The Tax Amnesty Program under RA 9480 may be availed of by documents and complied with the requirements under RA
administrative agencies cannot be extended to amend or expand
any person except those who are disquali ed under Section 8 9480.
statutory requirements or to embrace matters not originally
thereof. The CIR contends that AIA is disquali ed under Section
encompassed by the law.
8(a) of RA 9480 from availing itself of the Tax Amnesty Program See Taxation Law Case Digest No. 1
because it is “deemed” a withholding agent for the de ciency taxes.
This argument is untenable.
BIR v. Cagang 16 Mar 2022 People v. Tuyay 01 Dec 2021
The CIR also argues that AIA, being an accredited
investor/taxpayer situated at the Subic Special Economic Zone, The tax amnesty under RA 9480 does NOT extend to CEDCO 1. Here, Tuyay availed of the tax amnesty under RA 9480 and
should have availed of the tax amnesty granted under RA 9399 and with respect to its existing withholding tax liabilities. complied with all the requirements thereof.
not under RA 9480. This is also untenable.
1.1. Tax amnesty refers to the absolute waiver by a sovereign of 2. Tuyay was not disquali ed to avail of the tax amnesty
RA 9399 was passed prior to the passage of RA 9480. RA 9399 its right to collect taxes and power to impose penalties on because at the time she availed of it in February 2008, there
does not preclude taxpayers within its coverage from availing of persons or entities guilty of violating a tax law. was no pending criminal case against her before any court as
other tax amnesty programs available or enacted in futuro like RA it was only in October 2009 that the criminal cases were
1.1.1. It aims to grant a general reprieve to tax evaders
9480. Moreso, RA 9480 does not exclude from its coverage led against her with the CTA.
who wish to come clean by giving them an
taxpayers operating within special economic zones. As long as it is
opportunity to straighten out their records. 3. In sum, having availed of the tax amnesty and having fully
within the bounds of the law, a taxpayer has the liberty to choose
1.2. Sec 8 of RA 9480 provides that withholding taxes are not complied with all its requirements and conditions, Tuyay is
which tax amnesty program it wants to avail.
covered by the amnesty program. indeed entitled to the immunities and privileges conferred
by RA 9480, which includes her immunity from criminal
1.2.1. Thus, there is merit in the BIR's submission that
liability under the NIRC.
CIR v. Transfield Philippines, Inc. 2019 CEDCO is not quali ed to avail of the tax
See Taxation Law Case Digest No. 4 Ignorance of the Law ART 2. Laws shall take e ect after fteen days following the
completion of their publication either
Retroactivity of Laws
1. in the O cial Gazette OR
La Flor Dela Isabela v. CIR 28 Apr 2021
Mandatory or Prohibitory Laws 2. in a newspaper of general circulation in the Philippines,
La Flor's compliance with the requirements under RA 9480 as unless it is otherwise provided. xxxx
implemented by DOF DO No. 20-97 extinguished its tax liabilities,
Waiver of Rights
Is publication needed?
additions, and all appurtenant civil, criminal, or administrative
Presumption and Applicability of Custom
penalties under the NIRC.
Tañada v. Tuvera
1.1. La Flor's immunity from paying taxes under RA 9480 is Legal Periods
e ective despite the fact that the CIR already issued the The clause "unless it is otherwise provided" refers to the date of
Territoriality Principle e ectivity and not to the requirement of publication itself, which
FDDA prior to its application for tax amnesty and
subsequent payment thereof. cannot in any event be omitted. This clause does not mean that the
Con ict of Laws
legislator may make the law e ective immediately upon approval, or
1.2. CIR v. Philippine Aluminum Wheels, Inc. ruled that only
1. Lex Nationalii on any other date without its previous publication. Publication is
persons with "tax cases subject of nal and executory
indispensable in every case, but the legislature may in its discretion
judgment by the courts" are disquali ed to avail of the Tax
2. Lex Rei Sitae provide that the usual fteen-day period shall be shortened or
Amnesty Program under RA 9480, which means that there
extended.
must be a nal and executory judgment promulgated by a 3. Lex Loci Celebrationis
court. What needs to be published?
4. Doctrine of Renvoi 1. All statutes, including those of local application and
1.2.1. The FDDA issued by the BIR is not a tax case
subject of nal and executory judgment by the private laws;
Human Relations in Relation to Persons
court. 2. Presidential decrees and executive orders promulgated
Capacity to Act by the President in the exercise of legislative powers;
See Taxation Law Case Digest No. 7
Surnames 3. Administrative rules and regulations, if their purpose is
Civil Law to enforce or implement existing law pursuant also to a

valid delegation.
Rules Governing Persons Who are Absent
4. The charter of a city;
I Persons
A When Law Takes E ect Doctrine 5. The circulars issued by the Monetary Board, if they are
When Law Takes E ect Doctrine meant not merely to interpret but to " ll in the details" of
When does an ordinary law take effect?
the Central Bank Act which that body is supposed to
enforce. CSC v. Rodriguez 2020 obligation of parents to support their children and penalizing the
non-compliance therewith.
When publication NOT required Under Section 16 of RA 877 as amended, any person who practices
nursing in the Philippines, unless exempt, must possess a valid Moreover, foreign law should not be applied when its application
1. Interpretative regulations and those merely internal in
certi cate of registration. Violation of this provision amounts to illegal would work undeniable injustice to the citizens or residents of the
nature;
practice of the nursing profession for which appropriate sanctions will forum. Applying the foregoing, even if the laws of the Netherlands
2. Letters of instructions; neither enforce a parent’s obligation to support his child nor penalize
be imposed
3. Municipal ordinances are not covered by this rule but by the non-compliance therewith, such obligation is still duly enforceable
Respondent cannot hide behind the cloak of ignorance or lack of in the Philippines because it would be of great injustice to the child to
the Local Government Code.
familiarity with the law governing the nursing profession. Ignorance of be denied of nancial support when the latter is entitled thereto.
The publication must be in full or it is no publication at all the law excuses no one from compliance therewith. It is beyond dispute
since its purpose is to inform the public of the contents of the that during her stint as nurse at the Davao Oriental Provincial
laws. Hospital from 1989 to 2002, respondent was practicing the nursing
profession not only without a valid certi cate of registration but
C Retroactivity of Laws
also without a valid PRC nursing license. Respondent is, thus, ART 4. Laws shall have no retroactive e ect, unless the contrary
B Ignorance of the Law guilty of grave misconduct. is provided.
ART 3. Ignorance of the law excuses no one from compliance This rule applies only to ignorance of domestic laws — not Exceptions to the rule on prospectivity
therewith. foreign laws, as the latter must be proven as a fact. 1) When the law provides for its retroactivity;
Pablico v. Cerro, Jr. 2019 Del Socorro v. Van Wilsem 2014 2) When the law is curative or remedial;
3) When the law is procedural;
Petitioner argues that the respondents are not entitled to wage It is incumbent upon the respondent to plead and prove that the
di erentials as he is engaged in the service business employing less than national law of the Netherlands does not impose upon the parents the 4) When the law is penal in character and advantageous to the
ten (10) employees. obligation to support their child. accused;
However, the petitioner himself admitted that he did not apply for In view of the respondent's failure to prove the national law of the 5) When substantive right is declared for the rst time, unless
such exemption, thus, it is clear that he cannot claim bene ts under Netherlands in his favor, the doctrine of processual vested rights are impaired.
the law. The petitioner cannot shield himself from complying with the presumption shall govern. Under this doctrine, if the foreign law
law by the lone fact that he is just a layman and cannot be expected to involved is not properly pleaded and proved, our courts will presume Camacho v. CIR
know of the law's requirements. Under our legal system, ignorance of that the foreign law is the same as our local or domestic or internal law.
A retrospective or retroactive law is that which
the law excuses no one from compliance therewith. Thus, since the law of the Netherlands as regards the obligation to
support has not been properly pleaded and proved in the instant case, 1. creates a new obligation,
it is presumed to be the same with Philippine law, which enforces the 2. imposes a new duty or
sense that, a judgment promulgated after the expiration of said period 2) prejudicial to a third person with a right recognized
3. attaches a new disability in respect to a transaction already
is not null and void, although the o cer who failed to comply with by law.
past;
law may be dealt with administratively, in consequence of his delays —
Requisites for a valid waiver
but that statute is not made retrospective because it draws on unless the intention to the contrary is manifest.
antecedent facts for its operation, or in other words part of the 1. The person waiving must be capacitated to make the waiver;
requirements for its action and application is drawn from a time
2. The waiver must be made clearly, but not necessarily express;
antedating its passage.
Marcos v. COMELEC, et al. 3. The person waiving must actually have the right which he is
Our Constitution does not in terms prohibit the enactment of
It is a settled doctrine that a statute requiring rendition of renouncing;
retrospective laws which do not impair the obligations of contract or
deprive a person of property without due process of law, that is, which judgment within a speci ed time is generally construed to be 4. The waiver must not be contrary to law, morals, public
do not divest rights of property and vested rights. merely directory, "so that non-compliance with them does not policy, public order, or good customs;
invalidate the judgment on the theory that if the statute had intended 5. The waiver must not prejudice others with a right
such result it would have clearly indicated it." The di erence between a recognized by law.
mandatory and a directory provision is often made on grounds of
D Mandatory or Prohibitory Laws
necessity. Adopting the same view held by several American
Cui v. Arellano University
ART 5. Acts executed against the provisions of mandatory or authorities, this court in Marcelino v. Cruz held that:
prohibitory laws shall be VOID, except when the law itself The di erence between a mandatory and directory provision is The issue in this case is whether or not the waiver of petitioner’s right
authorizes their validity. often determined on grounds of expediency, the reason being that to transfer to another school without refunding to the respondent the
less injury results to the general public by disregarding than equivalent of his scholarships in cash, is valid or not.
GR: Acts in violation of Mandatory or Prohibitory laws is
VOID. enforcing the letter of the law. The stipulation in question is contrary to public policy and hence,
With the enactment of Sections 6 and 7 of R.A. 6646 in relation to null and void. Scholarships are awarded in recognition of merit not to
EXC: When the law makes the act
Section 78 of B.P. 881, the respondent Commission does not lose keep outstanding students in school to bolster its prestige.
1. Not void but merely voidable;
jurisdiction to hear and decide a pending disquali cation case under But what is morals? It is good customs; those generally accepted
2. Valid, but penalizes the wrongdoer; Section 78 of B.P. 881 even after the elections. principles of morality which have received some kind of social and
3. Valid, when it should have been void; practical con rmation. The practice of awarding scholarships to
attract students and keep them in school is not good customs nor has
4. Void, but recognizes some legal e ect owing therefrom.
E Waiver of Rights it received some kind of social and practical con rmation.
PAFLU v. Sec. of Labor et al. Scholarships are granted not to attract and to keep brilliant students in
ART 6. Rights may be waived, unless the waiver is
school for their propaganda value but to reward merit or help gifted
Legal provisions prescribing the period within which a decision 1) contrary to law, public order, public policy, morals, students in whom society has an established interest or a rst lien.
should be rendered are directory, not mandatory in nature — in the or good customs, or
contravene public policy; and the principle is recognized that If months are designated by their name, they shall be
everyone has a right to waive, and agree to waive, the advantage of a computed by the number of days which they respectively have.
Leal v. IAC
law or rule made solely for the bene t and protection of the individual
In computing a period, the rst day shall be excluded, and the
The law provides that for conventional redemption to take place, the in his private capacity, if it can be dispensed with and relinquished
last day included.
vendor should reserve, in no uncertain terms, the right to repurchase without infringing on any public right, and without detriment to the
the thing sold. Thus, the right to redeem must be expressly stipulated community at large.
H Territoriality Principle
in the contract of sale in order that it may have legal existence. When Colonel Otamias executed the Deed of Assignment, he
In the case before us, we cannot nd any express or implied grant of a e ectively waived his right to claim that his retirement bene ts are ART 14. Penal laws and those of public security and safety shall
right to repurchase, nor can we infer, from any word or words in the exempt from execution. The right to receive retirement bene ts be obligatory upon all who live or sojourn in the Philippine
questioned paragraph, the existence of any such right. belongs to Colonel Otamias. His decision to waive a portion of his territory, subject to the principles of public international law
retirement bene ts does not infringe on the right of third persons, but and to treaty stipulations.
even protects the right of his family to receive support.
I Conflict of Laws
Otamias v. Republic 2014
A writ of execution lies against the pension bene ts of a retired o cer

Presumption and Applicability of 1 Lex Nationalii
of the AFP, which is the subject of a deed of assignment drawn by him F
Custom ART 15. Laws relating
granting support to his wife and ve (5) children. The bene t of
exemption from execution of pension bene ts is a statutory ART 11. Customs which are contrary to law, public order or 1) to family rights and duties, or
right that may be waived, especially in order to comply with a public policy shall not be countenanced.
2) to the status, condition and legal capacity of persons
husband's duty to provide support under Article XV of the 1987 ART 12. A custom must be proved as a fact, according to the are binding upon citizens of the Philippines, even
Constitution and the Family Code. rules of evidence. though living abroad.
The doctrine of waiver extends to rights and privileges of any
character, and, since the word 'waiver' covers every conceivable right, it G Legal Periods Orion Savings v. Suzuki 2014
is the general rule that a person may waive any matter which a ects his
property, and any alienable right or privilege of which he is the owner ART 13. When the laws speak of years, months, days or nights, All matters concerning the title and disposition of real property are
or which belongs to him or to which he is legally entitled, whether it shall be understood that determined by what is known as the lex loci rei sitae. This principle
secured by contract, conferred with statute, or guaranteed by even governs the capacity of the person making a deed relating to
a) years are of three hundred sixty- ve days each;
constitution, provided such rights and privileges rest in the immovable property, no matter what its nature may be.
b) months, of thirty days;
individual, are intended for his sole benefit, do not infringe on
the rights of others, and further provided the waiver of the c) days, of twenty-four hours; and
right or privilege is not forbidden by law, and does not Del Socorro v. Van Wilsem 2014
d) nights from sunset to sunrise.
Under the doctrine of processual presumption, if the foreign When the acts referred to are executed before the diplomatic or WON the intrinsic validity of the testamentary disposition or the
law involved is not properly pleaded and proved, our courts will consular o cials of the Republic of the Philippines in a distribution of the estate of the deceased Edward E. Christensen should
presume that the foreign law is the same as our local or domestic or foreign country, the solemnities established by Philippine laws be governed by the laws of the Philippines under the Renvoi Doctrine.
internal law. shall be observed in their execution.
YES. There is no question that Edward E. Christensen was a citizen of
However, when the foreign law, judgment or contract is contrary to a Prohibitive laws concerning persons, their acts or property, the United States and of the State of California at the time of his
sound and established public policy of the forum, the said foreign law, and those which have for their object public order, public death. But there is also no question that at the time of his death he was
judgment or order shall not be applied. policy and good customs shall not be rendered ine ective by domiciled in the Philippines.
laws or judgments promulgated, or by determinations or
The law that governs the Validity of his testamentary dispositions is
conventions agreed upon in a foreign country.
2 Lex Rei Sitae de ned in Article 16 of the Civil Code. The next question is: "What is
the law in California governing the disposition of personal property?”
ART 16. Real property as well as personal property is subject to Ambrose v. Suque-Ambrose 2021
The theory of the doctrine of renvoi is that the court of the forum,
the law of the country where it is stipulated.
Lex loci celebrationis is a latin term, literally translated as the law of in determining the question before it, must take into account the
However, intestate and testamentary successions, both with the place of the ceremony. It means that the validity of a contract is whole law of the other jurisdiction, but also its rules as to con ict of
respect governed by the place where it is made, executed, or to be performed. laws, and then apply the law to the actual question which the rules of
1) to the order of succession and It is a con ict of law principle that comes into play when there are the other jurisdiction prescribe. This may be the law of the forum.
substantive issues relating to a contract that is celebrated elsewhere
2) to the amount of successional rights and The national law mentioned in Article 16 of our Civil Code is the law
than the place of citizenship of its parties.
on con ict of laws in the California Civil Code, i.e., Article 946,
3) to the intrinsic validity of testamentary provisions,
Applied to this controversy, the marriage between the parties having which authorizes the reference or return of the question to the law of
and
been celebrated in the Philippines, is governed by Philippine laws. the testator's domicile. The con ict of law rule in California precisely
4) to the capacity to succeed (Art 1039) The same laws hold true with its incidents and consequences. Thus, refers back the case, when a decedent is not domiciled in California, to
all matters relating to the validity of the contract of marriage, such as the law of his domicile, the Philippines in the case at bar.
shall be regulated by the national law of the person whose
the presence or absence of requisites, forms, or solemnities are to be
succession is under consideration, whatever may be the nature The court of the domicile can not and should not refer the case back
judged in relation to the law in which it has been celebrated or
of the property and regardless of the country wherein said to California; such action would leave the issue incapable of
performed.
property may be found. determination because the case will then be like a football, tossed back
and forth between the two states, between the country of which the
3 Lex Loci Celebrationis 4 Doctrine of Renvoi decedent was a citizen and the country of his domicile. The
Philippine court must apply its own law as directed in the
ART 17. The forms and solemnities of contracts, wills, and con ict of law rule of the state of the decedent.
other public instruments shall be governed by the laws of the
Aznar v. Garcia
country in which they are executed.
J Human Relations in Relation to Persons instructed to allow said occupants to remove their personal ascertaining the amount of damages to which respondent is
properties, considering that this would not have taken a considerable entitled.”
Principle of Abuse of Rights length of time.
ART 19. Every person must, in the exercise of his rights and in
the performance of his duties, Go v. Cordero 2010
Velayo v. Shell Co. Phil.
a) act with justice, The failure of Robinson, Go, Tecson and Landico to act with
The Defendant schemed and a ected the transfer of its credits (from fairness, honesty and good faith in securing better terms for the
b) give everyone his due, and
which it could derive practically nothing) to its sister corporation in purchase of high-speed catamarans from AFFA, to the prejudice of
c) observe honesty and good faith. the United States where CALI's plane C-54 was then situated, Cordero as the duly appointed exclusive distributor, is further
The principle of abuse of rights sets certain standards which succeeding by such swift and unsuspected operation in disposing of proscribed by Article 19 of the Civil Code.
must be observed not only in the exercise of one's rights but also in said insolvent's property by removing it from the possession and The elements of abuse of rights are the following:
the performance of one's duties. ownership of the insolvent.
1) There is a legal right or duty;
When a right is exercised in a manner which does not conform We hold Defendant liable to pay to the plainti , for the bene t of
the insolvent CALI and its creditors, as compensatory damages a 2) which is exercised in bad faith;
with the norms enshrined in Article 19 and results in damage to
another, a legal wrong is thereby committed for which the sum equivalent to the value of the plane at the time aforementioned 3) for the sole intent of prejudicing or injuring another.
wrongdoer must be held responsible. and another equal sum as exemplary damages.
When Article 19 is violated, an action for damages is proper under
But while Article 19 lays down a rule of conduct for the Articles 20 or 21 of the Civil Code. Article 20 pertains to damages
government of human relations and for the maintenance of social arising from a violation of law. Article 21 refers to acts contra
order, it does not provide a remedy for its violation. Generally, an Meralco v. CA bonus mores and has the following elements:
action for damages under either Article 20 or Article 21 1) There is an act which is legal;
A prior written notice to the customer is required before
would be proper.
disconnection of the service. Failure to give such prior notice 2) but which is contrary to morals, good custom, public order,
amounts to a tort. or public policy; and
Albetz Investment Inc. v. CA
The prematurity of the action is indicative of an intent to cause 3) it is done with intent to injure.
The demolition complained of in the case at bar was not carried out additional mental and moral su ering to private respondent. This is
in a manner consistent with justice and good faith. At the instance of a clear violation of Article 21 of the Civil Code. A common theme runs through Articles 19 and 21, and that is, the
petitioner, it was done in a swift, unconscionable manner, giving the act complained of must be intentional.
In the Manila Gas Corporation case, the Court held that
occupants of the house no time at all to remove their belongings
respondents’ default in the payment of his bills “cannot be utilized
therefrom. No damage worth mentioning would have been
by petitioner to defeat or nullify the claim for damages. At most, this
sustained by petitioner if their men, led by the Sheri , had been Cebu Country Club v. Elqueizaga
circumstance can be considered as a mitigating factor in
In rejecting respondent’s application for proprietary membership, for the bar examinations.
Error and wrong do not mean the same thing. "Wrong" as used in
we nd that petitioners violated the rules governing human relations.
the aforesaid legal principle is the deprivation or violation of a right.
Petitioners committed fraud and evident bad faith in disapproving Willful acts that are contrary to law causing damage to another
respondent’s applications. This is contrary to morals, good custom Granting that Imperial su ered some loss or injury, yet in law there
ART 21. Any person who wilfully causes loss or injury to
or public policy. Hence, petitioners are liable for damages pursuant are instances of "damnum absque injuria". This is one of them. If
another in a manner that is contrary to morals, good customs
to Article 19 in relation to Article 21 of the same Code. fraud or malice had been proven, it would be a di erent proposition.
or public policy shall compensate the latter for the damage.
But then her action should be directed against the individual judge
As to petitioners’ reliance on the principle of damnum absque Breach of promise to marry, is it actionable?
or judges who fraudulently or maliciously injured her. Not against
injuria or damage without injury, su ce it to state that the same is
the other judges. The judiciary has no power to reverse the "Mere breach of a promise to marry" is NOT an actionable wrong.
misplaced. In Amonoy v. Gutierrez, we held that this principle
award of the board of judges of an oratorical contest.
does not apply when there is an abuse of a person’s right, as in What kind of damage can be recovered?
this case. Per express provision of Article 2219 (10) of the New Civil Code,
Under Article 2219, moral damages may be recovered, among University of the East v. Jader moral damages are recoverable in the cases mentioned in Article
others, in acts and actions referred to in Article 21. 21.
May an educational institution be held liable for damages for
Acts contrary to law done willfully or negligently causing misleading a student into believing that the latter had satisfied all the Cecilio Pe v. Alfonso Pe
damage requirements for graduation when such is not the case?
The circumstances under which defendant tried to win Lolita's
ART 20. Every person who, contrary to law, wilfully or YES. Educational institutions are duty-bound to inform the
a ection cannot lead to any other conclusion than that it was he
negligently causes damage to another, shall indemnify the students of their academic status and not wait for the latter to
who, thru an ingenious scheme or trickery, seduced the latter to the
latter for the same. inquire from the former. Want of care to the conscious disregard of
extent of making her fall in love with him. Defendant not only
No right impaired, no basis for damages civil obligations coupled with a conscious knowledge of the cause
deliberately, but through a clever strategy, succeeded in winning the
naturally calculated to produce them would make the erring party
a ection and love of Lolita to the extent of having illicit relations
Felipe v. Leuterio, et al. liable. Petitioner’s liability arose from its failure to promptly inform
with her. The wrong he has caused her and her family is indeed
respondent of the result of an examination and in misleading the
immeasurable considering the fact that he is a married man.
Whether the courts have the authority to reverse the award of the board latter into believing that he had satis ed all requirements for the
of judges of an oratorical competition. course. Verily, he has committed an injury to Lolita's family in a manner
contrary to morals, good customs and public policy as contemplated
No rights to the prizes may be asserted by the contestants, because However, while petitioner was guilty of negligence and thus
in Article 21 of the new Civil Code.
theirs was merely the privilege to compete for the prize, and that liable to respondent for the latter’s actual damages, we hold that
privilege did not ripen into a demandable right unless and until they respondent should not have been awarded moral damages.
were proclaimed winners of the competition by the appointed
At the very least, it behooved on respondent to verify for himself Wassmer v. Velez
arbiters or referees or judges.
whether he has completed all necessary requirements to be eligible
damages and other relief against the latter, without prejudice

Hermosisima v. CA, as reiterated in Estopa v. Piansay, ruled that ART 22. Every person who through an act of performance by
to any disciplinary administrative action that may be taken.
"mere breach of a promise to marry" is not an actionable wrong. another, or any other means, acquires or comes into possession
of something at the expense of the latter without just or legal ART 28. Unfair competition in agricultural, commercial or
This here is not a case of mere breach of promise to marry. To
ground, shall return the same to him. industrial enterprises or in labor through the use of force,
formally set a wedding and go through all the above-described
intimidation, deceit, machination or any other unjust,
preparation, and publicity, only to walk out of it when the Requisites for an Accion in rem verso
oppressive or highhanded method shall give rise to a right of
matrimony is about to be solemnized, is quite di erent. This is
a) Defendant has been enriched; action by the person who thereby su ers damage.
palpably and unjusti ably contrary to good customs, for which
defendant must be held answerable in damages in accordance with b) Plainti su ered a loss;
Article 21 aforesaid. c) Enrichment of defendant is without just or legal ground; and K Capacity to Act
d) Plainti has NO other action based on contract, ART 37. Juridical capacity, which is the tness to be the
quasi-contract, crime, or quasi-delict. subject of legal relations, is inherent in every natural person
Gashem Shookat Baksh v. CA and is lost only through death. Capacity to act, which is the
Even without fault one is liable for damages if benefited
power to do acts with legal e ect, is acquired and may be lost.
Whether or not damages may be recovered for a breach of promise to
ART 23. Even when an act or event causing damage to
marry on the basis of Article 21.
another's property was not due to the fault or negligence of 1 Restrictions on Capacity to Act
Where a man's promise to marry is in fact the proximate the defendant, the latter shall be liable for indemnity if
cause of the acceptance of his love by a woman and his through the act or event he was bene ted. ART 38. Minority, insanity or imbecility, the state of
representation to ful ll that promise thereafter becomes the being a deaf-mute, prodigality and civil interdiction are
proximate cause of the giving of herself unto him in a sexual Parens Patriae mere restrictions on capacity to act, and do not exempt the
congress, proof that he had, in reality, no intention of marrying her Meaning of court’s vigilance for the protection of the poor incapacitated person from certain obligations, as when the
and that the promise was only a subtle scheme or deceptive device to latter arise from his acts or from property relations, such as
ART 24. In all contractual, property or other relations, when
entice or inveigle her to accept him and to obtain her consent to the easements.
one of the parties is at a disadvantage on account of his moral
sexual act, could justify the award of damages pursuant to Article 21
dependence, ignorance, indigence, mental weakness, tender
not because of such promise to marry but because of the fraud and 2 Birth and Death of Natural Persons
age or other handicap, the courts must be vigilant for his
deceit behind it and the willful injury to her honor and reputation
protection. ART 40. Birth determines personality; but the conceived
which followed thereafter. It is essential, however, that such
Damages Against Public O cials and child shall be considered born for all purposes that are
injury should have been committed in a manner contrary to
for Unfair Competition favorable to it, provided it be born later with the conditions
morals, good customs or public policy.
ART 27. Any person su ering material or moral loss because a speci ed in the following article.
Unjust Enrichment public servant or employee refuses or neglects, without just ART 41. For civil purposes, the fetus is considered born if it is
cause, to perform his o cial duty may le an action for alive at the time it is completely delivered from the mother's
Solutio Indebiti and Accion en rem verso
womb. However, if the fetus had an intrauterine life of less

1. If one is <15, and the other >60, the older died ahead;
than seven months, it is not deemed born if it dies within
twenty-four hours after its complete delivery from the People v. Tirol 2. If both are <15, the younger died ahead;
maternal womb. 3. If both are >60, the older died ahead;
Death extinguishes criminal liability. Civil liability however generally
subsists. 4. If one is either <15 or >60, and the other is between 15 and 60,
Geluz v. CA
the former died ahead;
Since an action for pecuniary damages on account of personal injury 5. If both are between 15 and 60,
or death pertains primarily to the one injured, it is easy to see that if Dumlao v. Quality Plastic Product
a. If one male, the other female, the female died ahead;
no action for such damages could be instituted on behalf of the
As far as Oria was concerned, the lower court's judgment against him b. If both of the same sex, the younger died ahead.
unborn child on account of the injuries it received, no such right of
in Civil Case No. T-662 is void for lack of jurisdiction over his
action could derivatively accrue to its parents or heirs. In fact, even if The ages are relevant only if the purpose is other than succession
person. He was not, and he could not have been, validly served
a cause of action did accrue on behalf of the unborn child, the same because the rule applicable is presumption of survivorship.
with summons. He had no more civil personality. His juridical
was extinguished by its pre-natal death, since no transmission to
capacity, which is the tness to be the subject of legal relations, was If the issue as to who died rst arises from contract, you apply
anyone can take place from one that lacked juridical personality.
lost through death. survivorship. The ages of the parties matter.
Recovery can not be had for the death of an unborn child. This is
not to say that the parents are not entitled to collect any damages at
3 Presumption of Survivorship L Surnames
all. But such damages must be those in icted directly upon them, as
distinguished from the injury or violation of the rights of the ART 43. If there is a doubt, as between two or more persons Legitimate and Legitimated Children
deceased, his right to life and physical integrity. who are called to succeed each other, as to which of them died ART 364. Legitimate and legitimated children shall principally
rst, whoever alleges the death of one prior to the other, shall use the surname of the father.
ART 42. Civil personality is extinguished by death.
prove the same; in the absence of proof, it is presumed that
The e ect of death upon the rights and obligations of the they died at the same time and there shall be no transmission Alanis III v. CA 2020
deceased is determined by law, by contract and by will. of rights from one to the other.
Reading Article 364 of the Civil Code together with the State's
Survivorship. There are instances when it is necessary to determine
Rallos v. Felix Gochan & Sons Realty declared policy to ensure the fundamental equality of women and
who of the two persons died rst. The end result is that someone is
men before the law, a legitimate child is entitled to use the surname
By reason of the very nature of the relationship between principal presumed to have died ahead of the other.
of either parent as a last name.
and agent, agency is extinguished by the death of the principal or of Here, when two persons died in a calamity and it cannot be determined
the agent. It follows a fortiori that any act of an agent after the Indeed, the provision states that legitimate children shall
from the circumstances who among them died rst, the survivorship is
death of his principal is void ab initio unless the same falls "principally" use the surname of the father, but "principally" does
determined by the probabilities arising from the strength, ages and
under the exceptions provided for in Articles 1930 and 1931. not mean "exclusively." This gives ample room to incorporate into
sexes of the parties, subject to the following:
Article 364 the State policy of ensuring the fundamental equality of 3) Her husband's full name, but pre xing a word
4) nullity of marriage.
women and men before the law, and no discernible reason to ignore indicating that she is his wife, such as "Mrs."
it. Since petitioner's marriage to her husband subsists, she may not
Remo v. Secretary of Foreign Affairs 2010 resume her maiden name in the replacement passport. Otherwise
Adopted Children stated, a married woman's reversion to the use of her maiden name
A married woman has an option, but not a duty, to use the must be based only on the severance of the marriage.
ART 365. An adopted child shall bear the surname of the
surname of the husband in any of the ways provided by Article
adopter.
370 of the Civil Code. Legally Separated Wife
Illegitimate Children
The con ict between Article 370 of the Civil Code and Section 5(d) ART 372. When legal separation has been granted, the wife
ART 368. Illegitimate children referred to in Article 287 shall of RA 8239 is more imagined than real. RA 8239, including its shall continue using her name and surname employed before
bear the surname of the mother. implementing rules and regulations, does not prohibit a married the legal separation.
woman from using her maiden name in her passport. In fact, in
Alba v. CA recognition of this right, the DFA allows a married woman who Laperal v. Republic
applies for a passport for the rst time to use her maiden name. Such
Substantial corrections or cancellations of entries in civil registry The language of the statute is mandatory that the wife, even after the
an applicant is not required to adopt her husband's surname.
records a ecting the status or legitimacy of a person may be e ected legal separation has been decreed, shall continue using her name and
through the institution of a petition under Rule 108 of the Revised In the case of renewal of passport, a married woman may either surname employed before the legal separation. This is so because her
Rules of Court, with the proper RTC. Being a proceeding in rem, adopt her husband's surname or continuously use her maiden name. married status is una ected by the separation, there being no
acquisition of jurisdiction over the person of petitioner is therefore If she chooses to adopt her husband's surname in her new passport, severance of the vinculum.
not required in the present case. It is enough that the trial court is the DFA additionally requires the submission of an authenticated
Even, however, applying Rule 103 to this case, the fact of legal
vested with jurisdiction over the subject matter. copy of the marriage certi cate. Otherwise, if she prefers to continue
separation alone which is the only basis for the petition at
using her maiden name, she may still do so. The DFA will not
An in rem proceeding is validated essentially through publication. bar—is, in our opinion, not a su cient ground to justify a
prohibit her from continuously using her maiden name.
The absence of personal service of the order to Armi was therefore change of the name of herein petitioner, for to hold otherwise
cured by the trial court's compliance with Section 4, Rule 108, However, once a married woman opted to adopt her husband's would be to provide an easy circumvention of the mandatory
which requires notice by publication. surname in her passport, she may not revert to the use of her provisions of the said Article 372.
maiden name, except in the cases enumerated in Section 5(d) of RA
Married Women 8239. These instances are: Change of Name
ART 370. A married woman may use: 1) death of husband, ART 376. No person can change his name or surname without
judicial authority.
1) Her maiden rst name and surname and add her 2) divorce,
husband's surname, or
3) annulment, or Republic v. Vicencio
2) Her maiden rst name and her husband's surname or
In Republic v. Hernandez, we have recognized inter alia, the

In Calderon v. Republic, and Llaneta v. Agrava, this Court The following are the elements of usurpation of a name:
following as su cient grounds to warrant a change of name:
allowed the concerned child to adopt the surname of the step-father,
1) there is an actual use of another's name by the defendant;
a) when the name is ridiculous, dishonorable or extremely but unlike the situation in the present case where private respondent
di cult to write or pronounce; is a legitimate child, in those cases the children were not of 2) the use is unauthorized; and
legitimate parentage. 3) the use of another's name is to designate personality or
b) when the change is a legal consequence of legitimation or
adoption; identify a person.
c) when the change will avoid confusion; None of these elements exists in the case at bar and neither is there a
Yasin v. Shari'a District Court, claim by the petitioner that the private respondent impersonated
d) when one has continuously used and been known since Third Sharia Judicial District
her. In fact, it is of public knowledge that Constancia Tolentino is
childhood by a Filipino name and was unaware of alien
When the marriage ties or vinculum no longer exists as in the case of the legal wife of Arturo Tolentino so that all invitations for Senator
parentage;
death of the husband or divorce as authorized by the Muslim Code, and Mrs. Tolentino are sent to Constancia. Consuelo never
e) when the change is based on a sincere desire to adopt a the widow or divorcee need not seek judicial con rmation of the represented herself after the divorce as Mrs. Arturo Tolentino but
Filipino name to erase signs of former alienage, all in good change in her civil status in order to revert to her maiden simply as Mrs. Consuelo David-Tolentino. The private respondent
faith and without prejudice to anybody; and name as use of her former husband's is optional and not obligatory has legitimate children who have every right to use the surname
for her. When petitioner married her husband, she did not change Tolentino.
f) when the surname causes embarrassment and there is no
showing that the desired change of name was for a her name but only her civil status. Neither was she required to secure
fraudulent purpose, or that the change of name would judicial authority to use the surname of her husband after the
prejudice public interest. marriage as no law requires it. Ursua v. CA
The touchstone for the grant of a change of name is that there be Usurpation of Name The use of a ctitious name or a di erent name belonging to another
‘proper and reasonable cause’ for which the change is sought. A person in a single instance without any sign or indication that the
ART 377. Usurpation of a name and surname may be the
legitimate child generally bears the surname of his or her father. It user intends to be known by this name in addition to his real name
subject of an action for damages and other relief.
must be stressed that a change of name is a privilege, not a matter from that day forth does not fall within the prohibition contained
of right, addressed to the sound discretion of the court. in C.A. No. 142 as amended.
Tolentino v. CA
More confusion with grave legal consequences could arise if we allow
private respondent to bear her step-father’s surname, even if she is Whether or not a woman who has been legally divorced from
not legally adopted by him. While previous decisions have allowed her husband may be enjoined by the latter's present wife from Rules Governing Persons Who are
M
children to bear the surname of their respective step-fathers even using the surname of her former husband. Absent
without the bene t of adoption, these instances should be There is no usurpation of the petitioner's name and surname in this
distinguished from the present case. case so that the mere use of the surname Tolentino by the private
respondent cannot be said to have injured the petitioner's rights.
Provisional Measures in Case of Absence (Temporary ART 385. The following may ask for the declaration of Presumption of Death
Absence) absence:
Ordinary disappearance (7 years)
When a person disappears from his domicile, his whereabout 1) The spouse present;
ART 390. After an absence of seven years, it being unknown
being unknown, and without leaving an administrator of his 2) The heirs instituted in a will, who may present an whether or not the absentee still lives, he shall be presumed
properties authentic copy of the same; dead for all purposes, except for those of succession.
ART 381. When a person disappears from his domicile, his 3) The relatives who may succeed by the law of intestacy; Opening up of estate (10 years)
whereabouts being unknown, and without leaving an agent to
4) Those who may have over the property of the The absentee shall not be presumed dead for the purpose of
administer his property, the judge, at the instance of an
absentee some right subordinated to the condition of opening his succession till after an absence of ten years.
interested party, a relative, or a friend, may appoint a person to
his death.
represent him in all that may be necessary. If he disappeared after the age of 75 years, an absence of
When judicial declaration of absence will take effect ve years shall be su cient in order that his succession may
Appointment of an Administrator of his property. His wife is
ART 386. The judicial declaration of absence shall not take be opened.
prefered to administrator.
e ect until six months after its publication in a newspaper Extra-Ordinary disappearance (4 years)
ART 382. The appointment referred to in the preceding article
of general circulation.
having been made, the judge shall take the necessary measures ART 391. The following shall be presumed dead for all
to safeguard the rights and interests of the absentee and shall Administration of the Property of the Absentee purposes, including the division of the estate among the heirs:
specify the powers, obligations and remuneration of his
ART 388. The wife who is appointed as an administratrix of 1) A person on board a vessel lost during a sea voyage, or
representative, regulating them, according to the
the husband's property cannot alienate or encumber the an aeroplane which is missing, who has not been
circumstances, by the rules concerning guardians.
husband's property, or that of the conjugal partnership, heard of for four years since the loss of the vessel or
Declaration of Absence without judicial authority. aeroplane;
Declaration of Absence by the court if the disappearance is two ART 389. The administration shall cease in any of the 2) A person in the armed forces who has taken part in
(2) years, and if he left behind an administrator of his following cases: war, and has been missing for four years;
properties he can be declared an absentee after five (5) years. 1) When the absentee appears personally or by means of 3) A person who has been in danger of death under
ART 384. Two years having elapsed without any news about an agent; other circumstances and his existence has not been
the absentee or since the receipt of the last news, and ve years known for four years.
2) When the death of the absentee is proved and his
in case the absentee has left a person in charge of the testate or intestate heirs appear;
administration of his property, his absence may be declared. Republic v. CA
3) When a third person appears, showing by a proper
Who can ask for declaration of absence document that he has acquired the absentee's WON a petition for declaration of the presumptive death of a
property by purchase or other title. person is in the nature of a special proceeding.
petition for declaration of presumptive death under on an emergency vacation, inquired about the
If it is, the period to appeal is 30 days and the party appealing must,
Article 41 of the Family Code: absent spouse's whereabouts with friends and
in addition to a notice of appeal, le with the trial court a record on
relatives and in places where they had lived and
appeal to perfect its appeal. Otherwise, if the petition is an ordinary 2.1. rst, the absent spouse has been missing for four
where the absent spouse was born, availed of the
action, the period to appeal is 15 days from notice or decision or consecutive years, or two consecutive years if the
assistance of Bombo Radyo Philippines to
nal order appealed from and the appeal is perfected by ling a disappearance occurred where there is danger of
publicize the disappearance of the missing spouse,
notice of appeal. death under the circumstances laid down in
and sought information from various hospitals
Article 391 of the Civil Code;
The petition of Apolinaria Jomoc to have her absent spouse declared and funeral parlors, but still failed to locate his
presumptively dead had for its purpose her desire to contract a valid 2.2. second, the present spouse wishes to remarry; missing wife.
subsequent marriage. Ergo, the petition for that purpose is a
2.3. third, the present spouse has a well-founded 4.2. In Republic v. Cantor, during the four years that
"summary proceeding," following Art. 41, paragraph 2.
belief that the absentee is dead; and the husband had been missing, the wife had asked
Since Title XI of the Family Code, entitled SUMMARY JUDICIAL her husband's family, neighbors, and friends, who
2.4. fourth, the present spouse les for a summary
PROCEEDING IN THE FAMILY LAW, contains the following all o ered only their lack of knowledge concerning
proceeding for the declaration of presumptive
provision, inter alia: his whereabouts. The wife also claimed that she
death of the absentee.
ART 238. Until modi ed by the Supreme Court, the had made sure to check patients' directories in the
3. The well-founded belief in the absentee's death requires
procedural rules provided for in this Title shall apply as regards hospitals she went to, under the hope of nding
the present spouse to prove that his/her belief was the result
separation in fact between husband and wife, abandonment by her husband.
of diligent and reasonable e orts to locate the absent
one of the other, and incidents involving parental authority. 4.3. In Republic v. Orcelino-Villanueva, inquired with
spouse.
there is no doubt that the petition of Apolinaria Jomoc required, her husband's relatives and their common friends,
3.1. It necessitates exertion of active e ort, not a mere
and is, therefore, a summary proceeding under the Family Code, not who all gave her negative responses regarding her
passive one.
a special proceeding under the Revised Rules of Court appeal for missing husband's whereabouts.
which calls for the ling of a Record on Appeal. It being a summary 3.2. Mere absence of the spouse, even beyond the
4.4. In Republic v. Sareñogon, ensuing inquiries of the
ordinary proceeding, the ling of a Notice of Appeal from the period required by law, lack of any news that the
present spouse as to his wife's whereabouts from
trial court's order su ced. absentee spouse is still alive, mere failure to
his wife's relatives and friends yielded negative
communicate, or general presumption of absence
results.
under the Civil Code would NOT su ce.
5. All the aforecited e orts, however, had been stamped by the
Republic v. Ponce-Pilapil 25 Nov 2020 4. Jurisprudential precedents demonstrate the following
Court as merely passive and unexacting of the
e orts expended by the petitioning parties therein:
1. Respondent failed to demonstrate full compliance with jurisprudential standards that would qualify such e orts as
Article 41 of the Family Code. 4.1. In Republic v. Catubag, the present spouse, who diligent.
was working abroad, ew back to the Philippines
2. Jurisprudence sets out four requisites for a grant of a 6. Here, Josephine's e orts to search for Agapito only
consisted of inquiries not even done personally but by mere 5. Construction in Favor of Labor The constitutional mandates of protection to labor and security of
letter-correspondence facilitated by another person. tenure may be deemed as self-executing in the sense that these are
6. Burden of Proof and Quantum of Evidence automatically acknowledged and observed without need for any
6.1. Her acts fail to convince the Court that she indeed
enabling legislation. However, to declare that the constitutional
went out of her way to locate Agapito, and her
provisions are enough to guarantee the full exercise of the rights
search for Agapito's whereabouts cannot be said to A Legal Basis
embodied therein, and the realization of ideals therein expressed,
have been diligently and exhaustively conducted.
would be impractical, if not unrealistic.
See Civil Law Case Digest No. 38 1 1987 Constitution
Subsequent legislation is still needed to de ne the parameters of
these guaranteed rights to ensure the protection and promotion, not
Provides limitations in the enactment of Labor Laws.
Labor Law only the rights of the labor sector, but of the employers' as well.
1. Non-impairment Clause. Sec 10 Art III. No law impairing
the obligation of contracts shall be passed.
Fundamental Principles and Concepts
2. Equal Protection Clause. Sec 1 Art III. No person shall be 2 Civil Code
I PD 442, as amended deprived of life, liberty, or property without due process of
Omnibus Rules implementing the Labor Code law, nor shall any person be denied the equal protection of the
laws. Article 1700. The relations between capital and labor are not
Legal Basis 3. Prohibition Against Involuntary Servitude. Sec 18(2) Art merely contractual. They are so impressed with public interest that
III. No involuntary servitude in any form shall exist except as a labor contracts must yield to the common good. Therefore, such
1. 1987 Constitution contracts are subject to the special laws on labor unions, collective
punishment for a crime whereof the party shall have been duly
convicted. bargaining, strikes and lockouts, closed shop, wages, working
2. Civil Code
conditions, hours of labor and similar subjects.
4. Due Process Clause. Sec 1 Art III. No person shall be
3. Labor Code deprived of life, liberty, or property without due process of Article 1701. Neither capital nor labor shall act oppressively against
law, nor shall any person be denied the equal protection of the the other, or impair the interest or convenience of the public.
State Policy Towards Labor
laws. (Principle of Non-oppression)
1. Security of Tenure Constitutional provisions on the protection of labor are NOT
SELF-EXECUTING, and are mere guidelines that need enabling laws. Article 1702. In case of doubt, all labor legislation and all labor
2. Social Justice contracts shall be construed in favor of the safety and decent living
They are not judicially enforceable.
for the laborer.
3. Equal Work Opportunities
Council of Teachers & Staff of Colleges &
2018 En Banc
4. Right to Self-Organization and Collective Bargaining Universities of the Phils. v. Sec. of Education
3 Labor Code
a) PD 442, as amended; 1. the principle of shared responsibility between workers and The promotion of the welfare of all the people, the adoption by
employers and the Government of measures calculated to insure economic
b) Omnibus Rules implementing the Labor Code.
2. the preferential use of voluntary modes in settling disputes, stability of all the component elements of society, through the
including conciliation, and shall enforce their mutual maintenance of a proper economic and social equilibrium in the
B State Policy Towards Labor
compliance therewith to foster industrial peace. interrelation of the members of the community, constitutionally,
through the adoption of measures legally justi able, or
SEC 3 ART XIII. The State shall
The State shall regulate the relations between workers and employers, extra-constitutionally through the exercise of powers underlying
1. a ord full protection to labor, local and overseas, organized recognizing the existence of all Governments on the time-honored principle of
and unorganized, and Salus Populi est suprema lex. (Calalang v. Williams)
1. the right of labor to its just share in the fruits of production
2. promote full employment and equality of employment and
opportunities for all. 3 Equal Work Opportunities
2. the right of enterprises to reasonable returns to investments,
Collective Rights of Workers. — It shall guarantee the rights of all and to expansion and growth. a) The State shall promote full employment and equality of
workers to employment opportunities for all.
1 Security of Tenure b) A manifestation of this is the enactment of RA 10911 or the
1. self-organization,
Anti-Age Discrimination in Employment Act.
2. collective bargaining and negotiations, and
3. peaceful concerted activities, including the right to strike in ART 294. Security of Tenure. — In cases of regular employment, the Right to Self-Organization and Collective
4
accordance with law. employer shall not terminate the services of an employee except for a Bargaining
just cause or when authorized by this Title. An employee who is
Individual Rights of Workers. — They shall be entitled to unjustly dismissed from work shall be entitled to a) An employee can join a union on the rst day of employment.
b) Collective bargaining is a contract between workers and
1. security of tenure, a) reinstatement without loss of seniority rights and other
employers on terms and conditions of employment over and
2. humane conditions of work, and a privileges and
above those mandated by law.
3. living wage. b) his full backwages, inclusive of allowances, and
c) his other bene ts or their monetary equivalent computed 5 Construction in Favor of Labor
Right to Participate. — They shall also participate in policy and
from the time his compensation was withheld from him up
decision-making processes a ecting their rights and bene ts as may ART 4. Construction in Favor of Labor. — All doubts in the
to the time of his actual reinstatement.
be provided by law. implementation and interpretation of the provisions of this
The State shall promote Code, including its implementing rules and regulations, shall
2 Social Justice be resolved in favor of labor.
a) In Peñaflor v. Outdoor Clothing 2010, this principle has been that respondents have already obtained a copy of the worker, and only in compelling and justi ed cases
extended to cover doubts in the evidence presented by the amended complaint, and have been duly noti ed of the where the employer will de nitely su er injustice
employer and the employee. hearing. should such liberal interpretation be disallowed.
b) If doubt exists between the evidence presented by the 1. The issuance of the summons would have been a mere See Labor Law Case Digest No. 5
employer and the employee, the scales of justice must be tilted super uity since again, respondents have already
in favor of the latter. (Dreamland Hotel Resort v. Johnson obtained a copy of the amended complaint and
2014) noti ed of the upcoming hearing date.
6 Burden of Proof and Quantum of Evidence
c) The rule is that where the law speaks in clear and categorical D. Loon v. Power Master, Inc. pronounced that the liberality of
language, there is no room for interpretation; there is only procedural rules is quali ed by two requirements:
room for application. Only when the law is ambiguous or of Maula v. Ximex Delivery Express 2017
1. a party should adequately explain any delay in the
doubtful meaning may the court interpret or construe its true
submission of evidence; and In administrative and quasi-judicial proceedings, the quantum of
intent. (Leoncio v. MST Marine Services 2017)
2. a party should su ciently prove the allegations sought evidence required is substantial evidence or "such relevant
to be proven. evidence as a reasonable mind might accept as adequate to support a
conclusion." Thus, unsubstantiated suspicions, accusations, and
Reyes v. Rural Bank of San Rafael (Bulacan), Inc. E. Here, respondents failed to adequately explain and justify
23 Mar 2022 conclusions of the employer do not provide legal justi cation for
their non-participation in the proceedings before the
dismissing the employee.
The CA erred in a rming the NLRC Decision. arbiter.
A. Respondents were not denied due process. A liberal F. Thus, the application of a more liberal policy is
interpretation of the procedural rules was not warranted. unwarranted. Minsola v. New City Builders, Inc. 2018 re Money Claims
B. Here, during the proceedings before the arbiter, G. Relaxed and liberal interpretation of labor procedures —
In claims for payment of salary di erential, service incentive
respondents have been accorded ample opportunity to mainly for the bene t of employee, and NOT the employer.
leave, holiday pay and 13th month pay, the burden rests on the
present their side. H. The principles embodied by all prevailing labor rules, employer to prove payment. This standard follows the basic rule
1. They missed at least two settings. legislations, and regulations are derived from the that in all illegal dismissal cases the burden rests on the defendant to
Constitution, which intensely protects the working prove payment rather than on the plainti to prove non-payment.
2. They have already obtained a copy of the amended individual and deeply promotes social justice.
complaint which would have enabled them to On the other hand, for overtime pay, premium pays for holidays
intelligently respond. I. Of course, in certain cases, a liberal approach to the rules and rest days, the burden is shifted on the employee, as these
may be had even if it favors the employer. monetary claims are not incurred in the normal course of business.
C. While it may be true that the arbiter failed to issue
1. Such allowance, however, must be measured against It is thus incumbent upon the employee to rst prove that he
summons, such circumstance cannot operate as a denial of
standards stricter than that imposed against the actually rendered service in excess of the regular eight working hours
respondents' right to due process because the fact remains
a day, and that he in fact worked on holidays and rest days. 1 Mala in se and Mala prohibita Matalam v. People 2016
Crimes mala in se are inherently immoral and involve intent to The general rule is that acts punished under a special law are malum
commit a crime. Good faith is a defense in mala in se crimes, but prohibitum. "An act which is declared malum prohibitum, malice
Remoticado v. Typical
2018 re Illegal Dismissal is NOT a defense in mala prohibita crimes, where what is required or criminal intent is completely immaterial."
Construction Trading
is merely the intent to perpetrate the act. Although most crimes Hence, "intent to commit the crime and intent to perpetrate the
There can be no case for illegal termination of employment when punished under special penal laws are mala prohibita, there are also act must be distinguished. A person may not have consciously
there was no termination by the employer. While, in illegal those that are mala in se. intended to commit a crime; but he did intend to commit an act,
termination cases, the burden is upon the employer to show just
and that act is, by the very nature of things, the crime itself." When an
cause for termination of employment, such a burden arises only if Cardona v. People 2020
act is prohibited by a special law, it is considered injurious to public
the complaining employee has shown, by substantial evidence,
An act prohibited by a special law does NOT automatically make it welfare, and the performance of the prohibited act is the crime itself.
the fact of termination by the employer
malum prohibitum. "When the acts complained of are inherently Volition, or intent to commit the act, is di erent from criminal
immoral, they are deemed mala in se, even if they are punished by intent. Volition or voluntariness refers to knowledge of the act being
a special law." The bench and bar must rid themselves of the done. On the other hand, criminal intent refers to the state of
2012 re Clear and common misconception that all mala in se crimes are found in the
Duty Free Philippines v. Tria mind beyond voluntariness. It is this intent that is being punished
Convincing Evidence
RPC, while all mala prohibita crimes are provided by special laws. by crimes mala in se.
In illegal dismissal cases, the employer is burdened to prove just The better approach to distinguish between mala in se and mala
cause for terminating the employment of its employee with clear prohibita crimes is the determination of the inherent
and convincing evidence. This principle is designed to give esh immorality or vileness of the penalized act.
Garcia v. CA
and blood to the guaranty of security of tenure granted by the Is a violation of Section 195 of the OEC mala in se such that good faith
Constitution to employees under the Labor Code. and lack of criminal intent can be raised as valid defenses against its The acts prohibited in Section 27(b) of the Omnibus Election Code
conviction? YES. The applicable portion of Section 195 forbids the are mala in se. Given the volume of votes to be counted and
Criminal Law intentional tearing or defacing of the ballot or the placement of a canvassed within a limited amount of time, errors and
distinguishing mark. miscalculations are bound to happen. And it could not be the intent
of the law to punish unintentional election canvass errors.
I Book I of the Revised Penal Code In Garcia v. CA this Court categorically held that an electoral
o ense under Section 27(b) of R.A. 6646 is mala in se because "it Criminal intent is presumed to exist on the part of the person who
could not [have been] the intent of the law to punish unintentional executes an act which the law punishes, unless the contrary shall
election canvass errors." The same should apply to unintentional appear. Thus, whoever invokes good faith as a defense has the
A General Principles burden of proving its existence.
marks made on a ballot.
People v. Comia 3. Universal jurisdiction in jus cogens crimes and under Hernan v. Sandiganbayan 2017 En Banc
UNCLOS, and
The act of transporting a prohibited drug is a "malum For as long as the penal law is favorable to the accused, it shall nd
prohibitum" because it is punished as an o ense under a special law. 4. Erga omnes crimes under international criminal tribunal application regardless of whether its e ectivity comes after the time
It is a wrong because it is prohibited by law. Without the law jurisdiction. when the judgment of conviction is rendered and even if service of
punishing the act, it cannot be considered a wrong. As such, the sentence has already begun. The accused shall be entitled to the
mere commission of said act is what constitutes the o ense People v. Tulin re extraterritoriality and universal jurisdiction bene ts of the new law warranting him to serve a lesser sentence, or
punished and su ces to validly charge and convict an individual to his release, if he has already begun serving his previous sentence,
The attack on and seizure of "M/T Tabangao'' and its cargo were
caught committing the act so punished, regardless of criminal and said service already accomplishes the term of the modi ed
committed in Philippine waters, although the captive vessel was later
intent. sentence.
brought by the pirates to Singapore where its cargo was o -loaded,
transferred, and sold. And such transfer was done under
2 Scope and Characteristics accused-appellant Hiong's direct supervision. Although PD No. 3 Pro Reo Principle
532 requires that the attack and seizure of the vessel and its cargo be
committed in Philippine waters, the disposition by the pirates of the
a Generality
vessel and its cargo is still deemed part of the act of piracy, hence, the
⭐Intestate Estate of Gonzales v. People 2010
Penal laws apply to ALL PERSONS who commit crimes within same need not be committed in Philippine waters.
the territory. The fundamental principle in applying and in interpreting criminal
Moreover, piracy falls under Title One of Book Two of the Revised
laws is to resolve all doubts in favor of the accused. In dubio pro
EXC Penal Code. As such, it is an exception to the rule on
reo. When in doubt, rule for the accused.
territoriality in criminal law. It is likewise, well-settled that
1. Under Vienna Convention on diplomatic relations;
regardless of the law penalizing the same, piracy is a reprehensible Intimately related to the in dubio pro reo principle is the rule of
2. In certain exempting circumstances under the RPC and crime against the whole world (People v. Lol-lo). lenity. The rule applies when the court is faced with two possible
special laws; interpretations of a penal statute, one that is prejudicial to the
3. Legal pluralism in certain areas/culture, i.e. the Muslim accused and another that is favorable to him. The rule calls for the
Code and IPRA. c Prospectivity adoption of an interpretation which is more lenient to the
accused.
Penal laws do NOT have retroactive e ect.
b Territoriality Lenity becomes all the more appropriate when this case is viewed
EXC if the provisions are favorable to the accused who is not a
through the lens of the basic purpose of Article 332 of the RPC to
Penal laws apply to all o enses committed within the PH territory. habitual o ender
preserve family harmony by providing an absolutory cause.
EXC EXC to the EXC the law itself provides against such
1. Extraterritoriality under the RPC and SPLs retroactive e ect.
2. Transnational crimes under UNTOC and domestic law, Sps Dulay v. People 2021 Hernando, J
We have applied the doctrine of pro reo and the correlative rule on Concurring opinion of Leonen, J
lenity when there is doubt as to the applicability of various 4 Ex Post Facto Law
Under the present legal framework, the State commits to recognize
penalties under di erent amended or repealed laws.
and protect the rights of indigenous cultural communities to their An ex post facto law is one which:
Here, there is no doubt as to the applicability of Article 315(2)(a) of ancestral lands. In this regard, recent criminal and environmental
1) makes criminal an act done before the passage of the law
the RPC: the constitutive o ense of estafa by deceit under Article legislations, such as The Expanded National Integrated Protected
and which was innocent when done, and punishes such an act;
315(2)(a) was speci cally charged in the Information, established Areas System Act of 2018, have acknowledged the exercise by the
and proven beyond reasonable doubt, and a rmed on appeal by the indigenous peoples of their cultural practices and traditions to be an 2) aggravates a crime, or makes it greater than it was, when
appellate court. We therefore nd no need to apply lenity and the exception from the permit requirement. committed;
doctrine of pro reo, and ignore the speci c provision of law and the 3) changes the punishment and in icts a greater punishment
Further, the continuing inclination towards considering these
penalty prescribed thereunder. than the law annexed to the crime when committed;
cultural practices as an exception casts reasonable doubt on
whether or not petitioners should be held guilty under PD No. 705. 4) alters the legal rules of evidence, and authorizes conviction
The preferential application of these later laws is not only in accord upon less or di erent testimony than the law required at the
⭐Pulido v. People 2021 En Banc Hernando, J with the pro reo principle, but also with the concept of social time of the commission of the o ense;
justice.
In dubio pro reo. When in doubt, rule for the accused. This is in 5) assuming to regulate civil rights and remedies only, in e ect
consonance with the constitutional guarantee that the accused shall imposes penalty or deprivation of a right for something
be presumed innocent unless and until his guilt is established which when done was lawful, and
beyond reasonable doubt. It is well-settled that the scope of a penal People v. Pagal 2020 En Banc
6) deprives a person accused of a crime of some lawful
statute cannot be extended by good intention, implication, or even
Here, there is nothing in the records that would show the guilt of protection to which he has become entitled, such as the
equity consideration. Only those persons, o enses, and penalties,
accused-appellant. It is also not just to remand the case because this protection of a former conviction or acquittal, or a
clearly included, beyond any reasonable doubt, will be considered,
is not a situation where the prosecution was wholly deprived of the proclamation of amnesty.
within the statute's operation.
opportunity to perform its duties under the 2000 Revised Rules. In
In the instant case, to hold that a judicial declaration of absolute truth, to remand the instant case in the face of the prosecution's Sps Dulay v. People 2021 Hernando, J
nullity is a necessity before an accused in criminal prosecution for failure to discharge its duty under Sec. 3, Rule 116 would be to
bigamy may invoke his void ab initio marriage as a valid defense unduly favor the State and the victims' relatives to the detriment of The petitioners rely on Republic v. Eugenio, Jr., wherein the Court
interprets Article 349 too liberally in favor of the State and too the constitutional rights of accused-appellant. The duty of the declared that the proscription against ex post facto laws should be
strictly against the accused, in violation of the rule of lenity and prosecution to prove the accused's guilt for the capital o ense, applied to the interpretation of the original text of Section 11 of
the rule on strict construction of penal laws. despite his plea of guilt, whether improvidently made or not, is not R.A. No. 9160 because the passage of said law "stripped another
novel. No special considerations should be allotted the prosecution layer o the rule on absolute con dentiality that provided a measure
for its failure. In dubio pro reo. When in doubt, rule for the of lawful protection to the account holder." Accordingly, the
accused. application for the bank inquiry order as the means of inquiring
Sama and Masanglay v. People 2021 En Banc
into records of transactions entered into prior to the passage of R.A. to those who have been convicted and are serving sentence at the 5) Promulgate rules concerning the protection and enforcement of
No. 9160 would be constitutionally in rm, o ensive as it was to the time of the e ectivity of this said Act, and who were below the age constitutional rights, pleading, practice, and procedure in all
ex post facto clause of the Constitution. of 18 years at the time of the commission of the o ense. courts, the admission to the practice of law, the integrated bar, and
legal assistance to the under-privileged. Such rules shall provide a
The petitioners' reliance on said case is misplaced. Unlike the
passage of R.A. No. 9160 in order to allow an exception to the Remedial Law simpli ed and inexpensive procedure for the speedy disposition of
cases, shall be uniform for all courts of the same grade, and shall
general rule on bank secrecy, the amendment introduced by R.A.
not diminish, increase, or modify substantive rights. Rules of
No. 10167 does away with the notice to the account holder at the I General Principles procedure of special courts and quasi-judicial bodies shall remain
time when the bank inquiry order is applied for. Indeed, R.A. No.
e ective unless disapproved by the Supreme Court.
10167, in recognition of the ex post facto clause of the Substantive law vs. remedial law
Constitution, explicitly provides that "the penal provisions shall not Limitations to the rule-making power:
apply to acts done prior to the e ectivity of the AMLA on October Rule-making power of the Supreme Court
a. shall provide a simpli ed and inexpensive procedure for the
17, 2001."
Principle of judicial hierarchy speedy disposition of cases;
b. shall be uniform for all courts of the same grade; and
Doctrine of non-interference/Judicial stability
5 Interpretation of Penal Laws c. shall not diminish, increase, or modify substantive rights.
a. Penal laws are strictly construed against the Government and A Substantive Law vs. Remedial Law
C Principle of Judicial Hierarchy
liberally in favor of the accused;
1. Remedial Law — is that branch of law which prescribes the
b. The Spanish text is controlling. 1) The doctrine of hierarchy of courts guides litigants as to the
method and procedures of enforcing rights and obtaining
proper venue of appeals and/or the appropriate forum for the
redress for their invasion.
issuance of extraordinary writs. Thus, although the SC, the
6 Retroactive E ect of Penal Laws
2. Substantive Law — is that part of law which creates rights CA, and the RTC have concurrent original jurisdiction
The general rule is that penal laws shall have a retroactive e ect concerning life, liberty or property, or the powers of over petitions for certiorari, prohibition, mandamus, quo
insofar as they favor the person guilty of a felony except instrumentalities for the administration of public a airs. warranto, and habeas corpus, parties are directed, as a rule, to
(Primicias v. Ocampo) le their petitions before the lower-ranked court. Failure to
a. If the o ender is a habitual delinquent;
comply is su cient cause for the dismissal of the petition.
b. The new or amendatory law is not favorable to him; or Rule-making Power of the Supreme
B 2) A direct invocation of the Supreme Court's original
c. Retrospective application is expressly proscribed. Court jurisdiction to issue these writs should be allowed only when
there are special and important reasons therefor, clearly and
Sec 5 Art VIII, 1987 Constitution. The Supreme Court shall have
People v. Sarcia speci cally set out in the petition. The Diocese of Bacolod v.
the following powers:
Comelec summarized these circumstances in this wise:
Sec 68 of RA 9344 allows the retroactive application of the Act
xxxx
a) when there are genuine issues of constitutionality a) prevent inordinate demands upon the Court's time Leones v. Corpuz 17 Nov 2021
that must be addressed at the most immediate time; and attention which are better devoted to those
1. Although the SC has concurrent jurisdiction with the CA
matters within its exclusive jurisdiction;
b) when the issues involved are of transcendental in petitions for certiorari, a direct resort is allowed only
importance; b) prevent further overcrowding of the Court's docket; when there are special or compelling reasons that justify the
and same, to wit:
c) cases of rst impression;
c) prevent the inevitable and resultant delay, intended or 1.1. When dictated by the public welfare and the
d) the constitutional issues raised are better decided by
otherwise, in the adjudication of cases which often advancement of public policy;
the Court;
have to be remanded or referred to the lower court as
e) exigency in certain situations; 1.2. When demanded by the broader interest of justice;
the proper forum under the rules of procedure, or as
f) the led petition reviews the act of a constitutional the court better equipped to resolve factual questions. 1.3. When the challenged orders were patent nullities;
organ; (Gios-Samar v. DOTC 2019 En Banc) or
g) when petitioners rightly claim that they had no other 1.4. When analogous exceptional and compelling
Villafuerte v. SEC 29 Mar 2022 EN BANC
plain, speedy, and adequate remedy in the ordinary circumstances called for and justi ed the
course of law that could free them from the injurious 1. The petition su ers from procedural in rmities and should immediate and direct handling of the case.
e ects of respondents' acts in violation of their right be dismissed. 2. Leones' cause against the jurisdiction of the RTC is far too
to freedom of expression; generic, personal, and non-transcendental to fall under any
2. Petitioners violated the constitutional ltering mechanism
h) the petition includes questions that are "dictated by of hierarchy of courts. of these four exceptions.
public welfare and the advancement of public policy, 3. Leones also ignored the qualifying conditions for certiorari,
2.1. They led the case directly before the SC despite
or demanded by the broader interest of justice, or the viz.
the concurrent jurisdiction of the CA and the
orders complained of were found to be patent
RTC to issue the writs of certiorari and 3.1. one must show that the respondent tribunal,
nullities, or the appeal was considered as clearly an
prohibition they pray for. board or o cer exercising judicial or quasi-judicial
inappropriate remedy."
3. Gios-Samar, Inc. v. DOTC clari ed that direct recourse is functions has acted without or in excess of their
3) Thus, the common denominator is that the issues for jurisdiction, or with grave abuse of discretion
allowed only when the issues presented are purely legal.
resolution of the Court are purely legal. amounting to lack or excess of jurisdiction; and
3.1. Some of the issues here are not purely legal.
4) The doctrine of hierarchy of courts as a filtering 3.2. there is no appeal, or any plain, speedy, and
mechanism — The doctrine of hierarchy of courts operates 3.2. The existence of monopoly is a question of fact.
adequate remedy in the ordinary course of law.
to:
See Remedial Law Case Digest No. 7 4. While the present petition did allege grave abuse of
discretion, it did not demonstrate any act of whimsicality,
arbitrariness, or untoward hostility on the part of the RTC
judge in denying Leones' motion to quash. the concurrent jurisdiction of the CA.
8.2. Rights, however, may be waived or modi ed
5. For res judicata to bar a subsequent action, the following through a compromise agreement even after a nal 5. This constitutes a clear disregard of the hierarchy of courts
elements must be present: judgment has been rendered and already settled the and merits the dismissal of the Petition.
rights of the contracting parties.
5.1. The judgment sought to bar the new action must See Remedial Law Case Digest No. 57
be nal; See Remedial Law Case Digest No. 23
5.2. The decision must have been rendered by a court
having jurisdiction over the subject matter and the Doctrine of Non-Interference/ Judicial
D
parties; Palafox, Jr. v. Mendiola 15 Feb 2021 Stability
5.3. The disposition of the case must be a judgment on 1. The Petition is dismissed for violation of the rule on The doctrine of non-interference or judicial stability is a
the merits; and hierarchy of courts. time-honored policy that mandates that "no court can interfere by
5.4. There must be as between the rst and second 2. Under the principle of hierarchy of courts, direct recourse injunction with the judgments or orders of another court of
action, identity of parties, subject matter, and to this Court is improper because the Supreme Court is a concurrent jurisdiction having the power to grant the relief sought
causes of action. court of last resort and must remain to be so in order for it by injunction." (BSP v. Banco Filipino Savings and Mortgage Bank,
6. Here, the 4th element is lacking. to satisfactorily perform its constitutional functions. 2020)
6.1. G.R. No. 169726 determined the factual and legal 3. The invocation of the Court's original jurisdiction to issue Republic v. Tapay 2 Mar 2022
bases of Leones' entitlement to payment of her writs of certiorari has been allowed in certain instances on
RATA, whereas the ground of special and important reasons clearly stated 1. The higher interest of justice will be better served by
in the petition, such as granting respondents' prayer for a registration decree.
6.2. The Mandamus case is concerned with the manner
of execution of the actual payment of the RATA 3.1. when dictated by the public welfare and the 2. The Court agrees with petitioner that an RTC has no
judicially awarded to Leones. advancement of public policy; power to nullify or interfere with the decision of a co-equal
court pursuant to the law and the doctrine of judicial
7. Moreover, the compromise agreement and compromise 3.2. when demanded by the broader interest of justice;
stability.
judgment are valid. 3.3. when the challenged orders were patent nullities;
3. However, the foregoing presupposes that Cadastral Case
8. Judgments, once nal and executory, are incontestable and or
No. 33 really existed and that there actually is a decision in
unappealable. 3.4. when analogous exceptional and compelling that case.
8.1. The winning litigant receives the right to the circumstances called for and justi ed the
3.1. No other record, including a copy of the decision,
favorable awards contained in such executory immediate and direct handling of the case.
exists to support the theory.
judgment. 4. Here, Palafox, Jr. led his Petition directly to the SC despite
3.2. The doctrine of judicial stability thus nds no
application in this case.

2. Here, the RTC of Makati City obviously violated the Legal and Judicial Ethics with
4. In Republic v. Heirs of Sta. Ana, the LRA reported that a doctrine of judicial stability when it took cognizance of
prior decree of registration had already been issued, yet the Trackworks' Petition for Certiorari, Prohibition and Practical Exercises
Court still decided to allow the subsequent registration Mandamus despite the fact that the said case involved the
because there was no way to verify the truthfulness of the same parties and the subject matter fell within the I Legal Ethics
alleged prior case. jurisdiction of the RTC of Pasig.
4.1. Considering that it is the decree of registration that 2.1. Said petition ought to have been dismissed at the
binds the land and quiets the title thereto, and not outset for lack of jurisdiction. A Practice of Law
the decision, the registration should be allowed
3. The doctrine of judicial stability or non-interference in the Basic Concepts
with much more reason here where no decree of
regular orders or judgments of a co-equal court instructs
registration covering the subject land had yet been Quali cations for Admission to the Bar
that no court can interfere by injunction with the
issued and only the existence of the supposed
judgments or orders of another court of concurrent
decision which has not yet even attained nality
jurisdiction having the power to grant the relief sought by
Continuing Requirements for Membership in the Bar
bars respondents' application.
the injunction.
Appearance of Non-lawyers
5. In the same case, one of the key considerations for allowing
4. Settled is the rule that a judgment rendered by a court
the subsequent registration was the fact that a long time a) Law Student Practice Rule
without jurisdiction is null and void and may be attacked
had passed since the trial court ordered the issuance of a
anytime.
registration decree. b) Non-lawyers in Courts and/or Administrative
5. Also, at the time Trackworks led its petition before the
5.1. Here, almost 40 years have passed since the trial Tribunals
RTC of Makati, there exists litis pendentia wherein another
court determined that respondents are entitled to a
action is pending between the same parties for the same c) Proceedings Where Lawyers are Prohibited to Appear
registration decree.
cause of action, such that the second action, that is
Trackworks' petition before the RTC of Makati, becomes as Counsels
See Remedial Law Case Digest No. 16
unnecessary and vexatious.
Prohibited Practice of Non-lawyers and Appearance Without
See Remedial Law Case Digest No. 39 Authority
Metro Rail Transit v. Trackworks Rail Transit
Advertising 28 Jun 2021 Public O cials and the Practice of Law
1. The RTC Makati Decision would have rendered the
a) Prohibitions and Disquali cations of Former
certiorari case moot but the Orders of said RTC were
completely null and void. Government Attorneys
b) Public O cials Who Cannot Practice Law or Can The following factors are considered in determining whether It contemplates a succession of acts of the same nature
there is practice of law: habitually or customarily holding one’s self to the public as a
Practice Law With Restrictions lawyer.
iv) Habituality – implies customarily or habitually
Lawyers Authorized to Represent the Government It is a profession and not a business; a profession in pursuit of
holding one's self out to the public as a lawyer.
which pecuniary reward is merely incidental.
The Lawyer’s Oath v) Application of law, legal principles, practice or
procedure – calls for legal knowledge, training and Caronan v. Caronan 2016 En Banc
experience.
1 Basic Concepts WON the IBP erred in ordering that: (a) the name "Patrick A.
vi) Compensation – implies that one must have
Caronan" be stricken off the Roll of Attorneys; and (b) the name
a) Definition of the Practice of Law. — Practice of law means presented himself to be in the active and continued
"Richard A. Caronan" be barred from being admitted to the Bar.
any activity, in or out of court, which requires the application practice of the legal profession and that his
of law, legal procedure, knowledge, training and experience. professional services are available to the public for NO. The IBP was also correct in ordering that respondent, whose
"To engage in the practice of law is to perform those acts compensation, as a service for his livelihood or in real name is "Richard A. Caronan," be barred from admission to the
which are characteristics of the profession. Generally, to consideration of his said services. Bar. Under Section 6, Rule 138 of the Rules of Court, no
practice law is to give notice or render any kind of service, applicant for admission to the Bar Examination shall be admitted
vii) Attorney-client relationship.
which device or service requires the use in any degree of legal unless he had pursued and satisfactorily completed a pre-law
b) Practice of Law as a Privilege, Not a Right. — Is not a course.
knowledge or skill." (Cayetano v. Monsod)
property right but a mere privilege and as such must bow to
In the practice of his profession, a licensed attorney at law The Court does not discount the possibility that respondent may
the inherent regulatory power of the Court to exact
generally engages in three principal types of professional later on complete his college education and earn a law degree under
compliance with the lawyer’s public responsibilities.
activity: his real name. However, his false assumption of his brother's name,
The right to practice law is not a natural or constitutional identity, and educational records renders him un t for admission to
i) legal advice and instructions to clients to inform right. the Bar. The practice of law, after all, is not a natural, absolute
them of their rights and obligations, It is also in the nature of a right because lawyers cannot be or constitutional right to be granted to everyone who
ii) preparation for clients of documents requiring prevented from practicing law except for valid reasons demands it. Rather, it is a privilege limited to citizens of good
knowledge of legal principles not possessed by observing due process. moral character.
ordinary layman, and c) Law as a Profession, Not a Business or Trade. — It is not
iii) appearance for clients before public tribunals which a money-making venture. It is a calling impressed with public
possess power and authority to determine rights of interests. Sps Tolentino v. Ancheta 2016 En Banc
life, liberty, and property according to law, in order to It is not a right de jure. It cannot be assigned or inherited, but
Despite receipt of the P30,000.00 acceptance fee, he did not act on
assist in proper interpretation and enforcement of must be earned by hard study and good conduct.
his client's case. Moreover, he prevailed upon complainants to give
law. (Ulep v. Legal Clinic)
him P200,000.00 purportedly to be used to bribe the Justices of the 4. criminal law, 5. No charges against him, involving moral turpitude, led or are
Court of Appeals in order to secure a favorable ruling, palpably pending in court;
5. public and private international law,
showing that he himself was unconvinced of the merits of the case.
6. Possess the required educational quali cations;
"A lawyer shall not, for any corrupt motive or interest, encourage 6. political law,
any suit or proceeding or delay any man's cause." Atty. Ancheta's 7. Pass the bar examinations;
7. labor and social legislation,
misconduct betrays his lack of appreciation that the practice of 8. Take the lawyer’s oath;
8. medical jurisprudence,
law is a profession, not a money-making trade.
9. Sign the roll of attorneys;
9. taxation,
10. Receiving from the clerk of court of the SC a certi cate of the
10. legal ethics and
Quali cations for Admission to the Bar license to practice.
2 11. clinical legal education program. (shall apply to the bar
Bar Matter No. 1153 Continuing requirements for the practice of law
examination applicants commencing the 2023 bar
examinations. A.M. No. 19-03-24-SC) Membership in good standing ― is a continuing requirement.
Requirements for All Applicants for Admission to the Bar
This means continued membership and, concomitantly,
Filipino Citizens who are graduates of foreign law schools are
1. PH citizen;
allowed to take the bar examinations provided they show the following: 1. payment of annual membership dues in the IBP;
2. At least 21 years of age;
1. Completion of all courses leading to the degree of Bachelor of 2. payment of the annual professional tax;
3. Of good moral character; Laws or its equivalent degree;
3. compliance with the mandatory continuing legal education
4. A resident of PH; 2. Recognition or accreditation of the law school by the proper requirement;
5. Must produce before the SC satisfactory evidence of good authority;
4. faithful observance of the rules and ethics of the legal
moral character; and 3. Completion of all the fourth year subjects in a law school duly profession and
6. That no charges against him, involving moral turpitude, have recognized by the Philippine Government.
5. being continually subject to judicial disciplinary control.
been led or pending in any court in PH.
Continuing Requirements for Membership in a. Good moral character
No applicant who obtained the Bachelor of Laws degree in this 3
the Bar Good moral character is what a person really is, as distinguished
jurisdiction shall be admitted to the bar examination unless he or she
has satisfactorily completed the following courses in a law school or from good reputation or from the opinion generally entertained of
Qualifications for admission to the bar
university duly recognized by the government: him, the estimate in which he is held by the public in the place
1. Citizen of the Philippines; where he is known.
1. civil law,
2. Resident of the Philippines; Moral character is not a subjective term but one which
2. commercial law,
3. At least 21 years old; corresponds to objective reality. The standard of personal and
3. remedial law, professional integrity is not satis ed by such conduct as it merely
4. A person of good moral character;
enables a person to escape the penalty of criminal law. Good pursuant to its provisions, he must rst secure from the SC the
moral character includes at least common honesty. authority to do so, conditioned on: 7. Proof of payment of professional tax; and
This requirement is not only a condition precedent to admission to a) the updating and payment in full of the annual 8. Certi cate of compliance issued by the MCLE O ce.
the practice of law, its continued possession is also essential for membership dues in the IBP;
remaining in the practice of law.
b) the payment of professional tax;
The requirement of good moral character has four general purposes,
Appearance of Non-lawyers
c) the completion of at least 36 credit hours of mandatory 4
namely, to protect: Rules 138, 138-A, Rules of Court
continuing legal education; this is specially signi cant to
1) the public; refresh the applicant/petitioner’s knowledge of Philippine GR: Only those who are licensed to practice law can appear and
laws and update him of legal developments and handle cases in court.
2) the public image of lawyers;
d) the retaking of the lawyer’s oath which will not only EXC:
3) prospective clients; and
remind him of his duties and responsibilities as a lawyer
4) errant lawyers from themselves. and as an o cer of the Court, but also renew his pledge to
a) Law Student Practice Rule
maintain allegiance to the Republic of the Philippines. (In 1. Coverage. — The limited practice of law covers
Torres v. Dalangin 2017 En Banc re Dacanay) a. appearances,
As o cers of the court, lawyers must not only in fact be of good b. drafting and submission of pleadings and documents
In re Muneses 2012 En Banc
moral character but must also be seen to be of good moral character before trial and appellate courts and quasi-judicial and
and leading lives in accordance with the highest moral standards of In pursuance to the quali cations laid down by the Court for the administrative bodies,
the community. As keepers of public faith, lawyers are burdened practice of law, the OBC required the herein petitioner to submit
with a high degree of social responsibility and, hence, must handle c. assistance in mediation and other alternative modes of
the original or certi ed true copies of the following documents in
their personal a airs with great caution. dispute resolution,
relation to his petition:
d. legal counseling and advice, and
1. Petition for Re-Acquisition of Philippine Citizenship;
b. Citizenship; reacquisition of the privilege to practice e. such other activities that may be covered by the
law in the Philippines 2. Order (for Re-Acquisition of Philippine citizenship);
Clinical Legal Education Program of the law school
A Filipino lawyer who becomes a citizen of another country is 3. Oath of Allegiance to the Republic of the Philippines; herein provided.
deemed never to have lost his Philippine citizenship if he reacquires
4. Identi cation Certi cate (IC) issued by the Bureau of 2. Eligibility Requirements of Law Student Practitioners
it in accordance with RA 9225. Although he is also deemed never
Immigration; —
to have terminated his membership in the Philippine bar, no
automatic right to resume law practice accrues. 5. Certi cate of Good Standing issued by the IBP; a. Level 1 certi cation, for law students who have
6. Certi cation from the IBP indicating updated payments of successfully completed their rst-year law courses;
Under RA 9225, if a person intends to practice the legal profession
annual membership dues; and/or
in the Philippines and he reacquires his Filipino citizenship
shall be prepared by the certi ed law student

b. Level 2 certi cation, for law students currently The following limitations must be observed:
practitioner for execution by the eligible party; and
enrolled for the second semester of their third-year
1. The non-lawyer should con ne his work to non-adversary
law courses. f. Provide the level of supervision to the certi ed law
contentions and should not undertake purely legal work (i.e.,
student practitioner required by these rules.
3. A law student practitioner may sign briefs, pleadings, letters, examination of witness, presentation of evidence);
and other similar documents which the student has produced b) Non-lawyers in Courts and/or Administrative 2. The services should not be habitual;
under the direction of the supervising lawyer. Tribunals
3. Attorney’s fees should not be charged.
4. Supervising Lawyers — A supervising lawyer shall be a 1. In cases before the MTC, a party may conduct his own case or
member of the bar in good standing. The following are the litigation in person, with the aid of an agent or friend c) Proceedings Where Lawyers are Prohibited to Appear
duties of a supervising lawyer: appointed by him for that purpose. as Counsels
a. Supervise such number of certi ed law student 2. Before any other court, a party may conduct his litigation 1. In small claims cases, no attorney shall appear on behalf of
practitioners as far as practicable; personally. or represent a party at the hearing, unless the attorney is the
plainti or defendant. If the court determines that a party
b. Personally appear with the law student practitioner in 3. In localities where members of the bar are not available, the
cannot properly present his/her claim or defense and needs
all cases pending before the second-level courts and in court may appoint any person, resident of the province and of
assistance, the court may, in its discretion, allow another
all other cases the supervising lawyer determines that good repute for probity and ability, to defend the accused
individual who is not an attorney to assist that party upon the
his or her presence is required; before an MTC. (Sec 7 Rule 116)
latter's consent (Sec 17, Rules of Procedure in Small Claims
c. Assume personal professional responsibility for any 4. Before the NLRC Cases)
work performed by the certi ed law student
a. Represent themselves; 2. In all katarungang pambarangay proceedings, the
practitioner while under his or her supervision;
b. Represent their organization or members thereof parties must appear in person without the assistance of the
d. Assist and advise the certi ed law student practitioner counsel or representative, except for minors and incompetents
with written authorization; or
in the activities authorized by these rules and review who may be assisted by their next of kin who are not lawyers
such activities with the certi ed law student c. Duly accredited members of any legal aid o ce duly
(Sec 415 LGC).
practitioner, all to the extent required for the proper recognized by the DOJ, or the IBP in cases referred to
practical training of the certi ed law student by the latter.
Malecdan v. Baldo 2018
practitioner and the protection of the client; 5. Any o cial or other person appointed or designated in
accordance with law to appear for the Government of the The language of P.D. 1508 is mandatory in barring lawyers from
e. Read, approve, and personally sign any pleadings,
Philippines. (Sec 33 Rule 138) appearing before the Lupon. Moreover, pursuant to the familiar
briefs or other similar documents prepared by the
maxim in statutory construction dictating that 'expressio unius est
certi ed law student practitioner prior to the ling 6. Before the Cadastral Court; exclusio alterius', the express exceptions made regarding minors and
thereof, and read and approve any documents which
7. Before the DARAB. incompetents must be construed as exclusive of all others not
mentioned.
corresponding penalty only for the sole purpose of

Atty. Baldo's violation of P.D. 1508 thus falls squarely within the 5. Tapay v. Bancolo similarly imposed the penalty of
recording it in his personal le with the OBC.
prohibition of Rule 1.01 of Canon 1 of the CPR. suspension of one (1) year to the respondent-lawyer therein
See Ethics Case Digest No. 30 who was found to have authorized or delegated to his
secretary the signing of the pleadings for ling before the
Prohibited Practice of Non-lawyers and courts.
5
Appearance Without Authority Petelo v. Rivera 16 Oct 2019 See Ethics Case Digest No. 31
a. Lawyers without authority. — Corruptly or willfully 1. The acts of Atty. Rivera constituted violations of the CPR,
b. Persons not lawyers. — The following are the remedies for
appearing as an attorney for a party to a case without authority particularly Rule 9.01, Canon 9, Rule 1.10, Canon 1 and
persons who are not lawyers and lawyers who appear without
to do so is a ground for disbarment or suspension. (Sec 27 Rule 10.01, Canon 10.
authority:
R138)
2. Atty. Rivera's act of allowing persons other than himself to
i. Petition for injunction;
use his signature in signing papers and pleadings, in e ect,
Valmonte v. Quesada, Jr. 04 Dec 2019 ii. Declaratory relief;
allowed non-lawyers to practice law.
1. Quesada committed unauthorized practice of law. iii. Contempt of court (Sec 3[e] R71);
2.1. Worse, he failed to display or even manifest any zeal
2. Respondent's acts of signing and ling of pleadings for his or eagerness to unearth the truth behind the events iv. Administrative complaint against the erring lawyer or
client in the Murder case months after the promulgation of which led to his involvement in the ling of the government o cial;
the Resolution are clear proofs that he practiced law during unauthorized civil suit.
v. Criminal complaint for estafa against the person who
the period of his suspension.
3. He openly admitted his association with a disbarred lawyer falsely represented himself as a lawyer to the damage of
3. The Court has consistently imposed an additional and their ongoing agreement to allow the latter to use his another.
suspension of six months on lawyers who continue to signature and "details" in the preparation of pleadings.
practice law despite their suspension. 6 Public O cials and the Practice of Law
3.1. By so doing, he not only willingly allowed a
4. However, considering that the Court had already imposed non-lawyer to practice law; worse, he allowed one
upon respondent the ultimate penalty of disbarment for his to continue to practice law notwithstanding that a) Prohibitions and Disquali cations of Former
gross misconduct and willful disobedience of the lawful this Court already stripped him of his license to Government Attorneys
orders of the court in an earlier complaint for disbarment practice law. Sec 7(b) of RA 6713 provides that public o cials and employees
led against him in Zarcilla v. Quesada, Jr., the penalty of during their incumbency shall not, among others, engage in the
4. Here, Atty. Rivera abused the privilege that is only personal
additional six months suspension from the practice of law private practice of their profession unless authorized by the
to him when he allowed another who has no license to
can no longer be imposed upon him. Constitution or law, provided that such practice will not con ict
practice law, to sign pleadings and to le a suit before the
or tend to con ict with their o cial functions.
5. But while the Court can no longer impose the penalty court using his signature and "details."
upon the disbarred lawyer, it can still give the
in any case in which said government has an interest direct or

The professional concerned cannot practice his profession in
a. Appear as counsel before any court in any civil indirect (Sec 33 R138)
connection with any matter before the o ce he used to be with, in
cases wherein an LGU or any o ce, agency, or
which case the one-year prohibition shall apply. (one year after instrumentality of the government is the adverse 8 The Lawyer’s Oath
resignation, retirement, or separation from public office) party;
I, _________________ of _________________ do solemnly
b) Public O cials Who Cannot Practice Law or Can b. Appear as counsel in any criminal case wherein an swear that
Practice Law With Restrictions o cer or employee of the national or local
government is accused of an o ense committed in 1. I will maintain allegiance to the Republic of the
Public O cials who CANNOT practice law relation to his o ce; Philippines;
1. Judges and other o cials or employees of the superior c. Collect any fee for their appearance in 2. I will support its Constitution and obey the laws as well as
court; administrative proceedings involving the LGU of the legal orders of the duly constituted authorities
which he is an o cial; AND therein;
2. O cials and employees of the OSG;
d. Use property and personnel of the Government 3. I will do no falsehood, nor consent to the doing of any in
3. Government prosecutors;
except when the sanggunian member concerned is court;
4. President, VP, Members of the Cabinet, their deputies and
defending the interest of the government. 4. I will not wittingly nor willingly promote or sue any
assistants;
3. A retired justice or judge receiving pension from the groundless, false or unlawful suit, or give aid nor consent
5. Members of constitutional commissions; to the same;
government cannot act as counsel
6. Members of the JBC; 5. I will delay no man for money or malice, and will conduct
a. in any civil case which the government is the
7. Ombudsman and his deputies; adverse party; or myself as a lawyer according to the best of my knowledge
and discretion, with all good delity as well to the court as
8. All governors and mayors; b. in any criminal case wherein an o cer or employee to my clients; and
of the government is accused of an o ense
9. Those prohibited by special law. 6. I impose upon myself this voluntary obligation without
committed in relation to his o ce.
Public O cials who CAN practice law WITH restrictions any mental reservation or purpose of evasion.
1. Members of Congress cannot personally appear as So help me God.

counsel before any court of justice, electoral tribunals, or Lawyers Authorized to Represent the
7
quasi-judicial and other administrative bodies. Thus, they Government
are allowed to engage in other aspects of the law practice.
Any o cial or other person appointed or designated in accordance
2. Under the LGC, Sanggunian members may practice law, with law to appear for the Government of the Philippines shall
provided they shall NOT: have all the rights of a duly authorized member of the bar to appear

2023 Syllabus-Based EREVIEWER v2 Preview

Uploaded by

Copyright:

Available Formats

2023 Syllabus-Based EREVIEWER v2 Preview

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2023 Syllabus-Based EREVIEWER v2 Preview

Uploaded by

Copyright:

Available Formats

Syllabus-based eReviewer

for the 2023 Bar

Remedial Law 65 The National Territory

social security bene ts was struck down as an invasion of

imposition, and not a charge on property, and is therefore not

and other duties or imposts within the framework of the

The Constitution does not de ne or restrict marriage on the basis of

their assigned constitutional duties for the harmonious working of VI;

b. Suability then depends on the nature of the function

undertaking, the partnership is dissolved, unless

a) Debt by installments or otherwise; c) Partnership Term When is liability separate?

venture. [Cesar L. Villanueva, Philippine Corporate

a) If innocent — c) Any person appointed by the court

d) Promote Economic Growth; Altruistic

Hence, it is useless to impose a tax which could not be

2. Concurrence of a majority of all the members of b. Incidental;

laws or the Rules of Court may provide, nal judgments and

articles can be subject to VAT, what cannot be taxed is the

1.3. Taxes being the lifeblood of the government should be EXC:

Civil Law to enforce or implement existing law pursuant also to a

A writ of execution lies against the pension bene ts of a retired o cer

damages and other relief against the latter, without prejudice

womb. However, if the fetus had an intrauterine life of less

In Republic v. Hernandez, we have recognized inter alia, the

application in this case.

shall be prepared by the certi ed law student

corresponding penalty only for the sole purpose of

in any case in which said government has an interest direct or

1. Members of Congress cannot personally appear as So help me God.

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.