National Economy, Patrimony and Ammendment Cases

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    Tanada vs Angara, 272 SCRA 18, May 2, 1997

    Facts : This is a petition seeking to nullify the Philippine ratification of the World

    Trade Organization (WTO) Agreement. Petitioners question the concurrence of

    herein respondents acting in their capacities as Senators via signing the said

    agreement.

    The WTO opens access to foreign markets, especially its major trading partners,

    through the reduction of tariffs on its exports, particularly agricultural and industrial

    products. Thus, provides new opportunities for the service sector cost and

    uncertainty associated with exporting and more investment in the country. These

    are the predicted benefits as reflected in the agreement and as viewed by the

    signatory Senators, a free market espoused by WTO.

    Petitioners on the other hand viewed the WTO agreement as one that limits,

    restricts and impair Philippine economic sovereignty and legislative power. That the

    Filipino First policy of the Constitution was taken for granted as it gives foreigntrading intervention.

    Issue : Whether or not there has been a grave abuse of discretion amounting to

    lack or excess of jurisdiction on the part of the Senate in giving its concurrence of

    the said WTO agreement.

    Held: In its Declaration of Principles and state policies, the Constitution adopts the

    generally accepted principles of international law as part of the law of the land, and

    adheres to the policy of peace, equality, justice, freedom, cooperation and amity ,

    with all nations. By the doctrine of incorporation, the country is bound by generallyaccepted principles of international law, which are considered automatically part of

    our own laws. Pacta sunt servanda international agreements must be performed in

    good faith. A treaty is not a mere moral obligation but creates a legally binding

    obligation on the parties.

    Through WTO the sovereignty of the state cannot in fact and reality be considered

    as absolute because it is a regulation of commercial relations among nations. Such

    as when Philippines joined the United Nations (UN) it consented to restrict its

    sovereignty right under the concept of sovereignty as autolimitation. What Senate

    did was a valid exercise of authority. As to determine whether such exercise is wise,

    beneficial or viable is outside the realm of judicial inquiry and review. The act ofsigning the said agreement is not a legislative restriction as WTO allows withdrawal

    of membership should this be the political desire of a member. Also, it should not be

    viewed as a limitation of economic sovereignty. WTO remains as the only viable

    structure for multilateral trading and the veritable forum for the development of

    international trade law. Its alternative is isolation, stagnation if not economic self-

    destruction. Thus, the people be allowed, through their duly elected officers, make

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    their free choice.

    Petition is DISMISSED for lack of merit.

    Miners Association of the Philippines v. Factoran, Case Digest

    G.R. No. 98332 January 16, 1995

    Facts :

    Former President Corazon Aquino issued Executive Order Nos 211 and 279 in the

    exercise of her legislative powers. EO No. 211 prescribes the interim procedures in

    the processing and approval of applications for the exploration, development andutilization of minerals pursuant to Section 2, Article XII of the 1987 Constitution. EO

    No. 279 authorizes the DENR Secretary to negotiate and conclude joint-venture, co-

    production, or production- sharing agreements for the exploration, development,

    and utilization of mineral resources.

    The issuance and the impeding implementation by the DENR of Administrative

    Order Nos. 57 which declares that all existing mining leases or agreements which

    were granted after the effectivity of the 1987 Constitutionshall be converted into

    production-sharing agreements within one (1) year from the effectivity of these

    guidelines. and Administrative Order No. 82 which provides that a failure to submit

    Letter of Intent and Mineral Production-Sharing Agreement within 2 years from the

    effectivity of the Department Administrative Order No. 57 shall cause the

    abandonment of the mining, quarry, and sand and gravel claims, after their

    respective effectivity dates compelled the Miners Association of the Philippines, Inc.,

    an organization composed of mining prospectors and claim owners and claim

    holders, to file the instant petition assailing their validity and constitutionality

    before this Court.

    Issue :

    Are the two Department Administrative Orders valid?

    Ruling :

    Yes. Petitioner's insistence on the application of Presidential Decree No. 463, as

    amended, as the governing law on the acceptance and approval of declarations of

    location and all other kinds of applications for the exploration, development, and

    utilization of mineral resources pursuant to Executive Order No. 211, is erroneous.

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    Presidential Decree No. 463, as amended, pertains to the old system of exploration,

    development and utilization of natural resources through "license, concession or

    lease" which, however, has been disallowed by Article XII, Section 2 of the 1987

    Constitution. By virtue of the said constitutional mandate and its implementing law,

    Executive Order No. 279 which superseded Executive Order No. 211, the provisions

    dealing on "license, concession or lease" of mineral resources under PresidentialDecree No. 463, as amended, and other existing mining laws are deemed repealed

    and, therefore, ceased to operate as the governing law. In other words, in all other

    areas of administration and management of mineral lands, the provisions of

    Presidential Decree No. 463, as amended, and other existing mining laws, still

    govern. Section 7 of Executive Order No. 279 provides, thus:

    Sec. 7. All provisions of Presidential Decree No. 463, as amended, other existing

    mining laws, and their implementing rules and regulations, or parts thereof, which

    are not inconsistent with the provisions of this Executive Order, shall continue in

    force and effect.

    Well -settled is the rule, however, that regardless of the reservation clause, mining

    leases or agreements granted by the State, such as those granted pursuant to

    Executive Order No. 211 referred to this petition, are subject to alterations through

    a reasonable exercise of the police power of the State.

    Accordingly, the State, in the exercise of its police power in this regard, may not be

    precluded by the constitutional restriction on non-impairment of contract from

    altering, modifying and amending the mining leases or agreements granted under

    Presidential Decree No. 463, as amended, pursuant to Executive Order No. 211.

    Police Power, being co-extensive with the necessities of the case and the demands

    of public interest; extends to all the vital public needs. The passage of Executive

    Order No. 279 which superseded Executive Order No. 211 provided legal basis forthe DENR Secretary to carry into effect the mandate of Article XII, Section 2 of the

    1987 Constitution.

    WHEREFORE, the petition is DISMISSED for lack of merit.

    La Bugal-B'Laan Tribal Assn vs Ramos Case Digest

    G.R. No 127882

    Facts :

    On July 25, 1987, then President Corazon C. Aquino issued Executive Order (E.O.)

    No. 2796 authorizing the DENR Secretary to accept, consider and evaluate

    proposals from foreign-owned corporations or foreign investors for contracts or

    agreements involving either technical or financial assistance for large-scale

    exploration, development, and utilization of minerals, which, upon appropriate

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    recommendation of the Secretary, the President may execute with the foreign

    proponent.

    On March 3, 1995, then President Fidel V. Ramos approved R.A. No. 7942 to "govern

    the exploration, development, utilization and processing of all mineral resources."

    R.A. No. 7942 defines the modes of mineral agreements for mining operations,outlines the procedure for their filing and approval, assignment/transfer and

    withdrawal, and fixes their terms. Similar provisions govern financial or technical

    assistance agreements.

    On April 9, 1995, 30 days following its publication on March 10, 1995 in Malaya and

    Manila Times, two newspapers of general circulation, R.A. No. 7942 took effect.

    Shortly before the effectivity of R.A. No. 7942, however, or on March 30, 1995, the

    President entered into an FTAA with WMCP covering 99,387 hectares of land in

    South Cotabato, Sultan Kudarat, Davao del Sur and North Cotabato.

    On August 15, 1995, then DENR Secretary Victor O. Ramos issued DENR

    Administrative Order (DAO) No. 95-23, s. 1995, otherwise known as the

    Implementing Rules and Regulations of R.A. No. 7942. This was later repealed by

    DAO No. 96-40, s. 1996 which was adopted on December 20, 1996.

    On January 10, 1997, counsels for petitioners sent a letter to the DENR Secretary

    demanding that the DENR stop the implementation of R.A. No. 7942 and DAO No.

    96-40, giving the DENR fifteen days from receipt to act thereon. The DENR,

    however, has yet to respond or act on petitioners' letter.

    Petitioners claim that the DENR Secretary acted without or in excess of jurisdiction.

    They pray that the Court issue an order:

    (a) Permanently enjoining respondents from acting on any application for Financial

    or Technical Assistance Agreements;

    (b) Declaring the Philippine Mining Act of 1995 or Republic Act No. 7942 as

    unconstitutional and null and void;

    (c) Declaring the Implementing Rules and Regulations of the Philippine Mining Act

    contained in DENR Administrative Order No. 96-40 and all other similar

    administrative issuances as unconstitutional and null and void; and(d) Cancelling the Financial and Technical Assistance Agreement issued to Western

    Mining Philippines, Inc. as unconstitutional, illegal and null and void.

    Issue :

    Whether or not Republic Act No. 7942 is unconstitutional.

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    Ruling :

    The Court finds the following provisions of R.A. No. 7942 to be violative of Section 2,

    Article XII of the Constitution and hereby declares unconstitutional and void:

    (1) The proviso in Section 3 (aq), which defines "qualified person," to wit:

    Provided, That a legally organized foreign-owned corporation shall be deemed aqualified person for purposes of granting an exploration permit, financial or

    technical assistance agreement or mineral processing permit.

    (2) Section 23, which specifies the rights and obligations of an exploration

    permittee, insofar as said section applies to a financial or technical assistance

    agreement,

    (3) Section 33, which prescribes the eligibility of a contractor in a financial or

    technical assistance agreement;

    (4) Section 35, which enumerates the terms and conditions for every financial or

    technical assistance agreement;

    (5) Section 39, which allows the contractor in a financial and technical assistance

    agreement to convert the same into a mineral production-sharing agreement;

    (6) Section 56, which authorizes the issuance of a mineral processing permit to a

    contractor in a financial and technical assistance agreement;

    The following provisions of the same Act are likewise void as they are dependent on

    the foregoing provisions and cannot stand on their own:

    (1) Section 3 (g), which defines the term "contractor," insofar as it applies to a

    financial or technical assistance agreement.

    Section 34, which prescribes the maximum contract area in a financial or technical

    assistance agreements;

    Section 36, which allows negotiations for financial or technical assistance

    agreements;

    Section 37, which prescribes the procedure for filing and evaluation of financial ortechnical assistance agreement proposals;

    Section 38, which limits the term of financial or technical assistance agreements;

    Section 40, which allows the assignment or transfer of financial or technical

    assistance agreements;

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    Section 41, which allows the withdrawal of the contractor in an FTAA;

    The second and third paragraphs of Section 81, which provide for the Government's

    share in a financial and technical assistance agreement; and

    Section 90, which provides for incentives to contractors in FTAAs insofar as it

    applies to said contractors;

    When the parts of the statute are so mutually dependent and connected as

    conditions, considerations, inducements, or compensations for each other, as to

    warrant a belief that the legislature intended them as a whole, and that if all could

    not be carried into effect, the legislature would not pass the residue independently,

    then, if some parts are unconstitutional, all the provisions which are thus

    dependent, conditional, or connected, must fall with them.

    WHEREFORE, the petition is GRANTED.

    Isagani Cruz vs DENR

    Land Titles and Deeds IPRA Law vis a vis Regalian Doctrine

    Cruz, a noted constitutionalist, assailed the validity of the RA 8371 or the

    Indigenous Peoples Rights Act on the ground that the law amount to an unlawful

    deprivation of the States ownership over lands of the public domain as well as

    minerals and other natural resources therein, in violation of the regalian doctrine

    embodied in Section 2, Article XII of the Constitution. The IPRA law basically

    enumerates the rights of the indigenous peoples over ancestral domains which may

    include natural resources. Cruz et al contend that, by providing for an all-

    encompassing definition of ancestral domains and ancestral lands which might

    even include private lands found within said areas, Sections 3(a) and 3(b) of said

    law violate the rights of private landowners.

    ISSUE: Whether or not the IPRA law is unconstitutional.

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    HELD: The SC deliberated upon the matter. After deliberation they voted and

    reached a 7-7 vote. They deliberated again and the same result transpired. Since

    there was no majority vote, Cruzs petition was dismissed and the IPRA law was

    sustained. Hence, ancestral domains may include public domain somehow against

    the regalian doctrine

    MULLER VS MULLER

    Petitioner Elena Buenaventura Muller and respondent Helmut Muller were married

    in Hamburg, Germany onSeptember 22, 1989. The couple resided in Germany at a

    house owned by respondents parents but decided tomove and reside permanently

    in the Philippines in 1992. By this time, respondent had inherited the house

    inGermany from his parents which he sold and used the proceeds for the purchase

    of a parcel of land in Antipolo,

    Rizal at the cost of P528,000.00 and the construction of a house amounting to

    P2,300,000.00. The Antipoloproperty was registered in the name of petitioner under

    Transfer Certificate of Title No. 219438 5 of the Register of Deeds of Marikina,

    Metro Manila.Due to incompatibilities and respondents alleged womanizing, drinkin

    g, and maltreatment, the spouseseventually separated. On September 26, 1994,

    respondent filed a petition 6 for separation of properties beforethe Regional Trial

    Court of Quezon City.On August 12, 1996, the trial court rendered a decision which

    terminated the regime of absolute community of property between the petitioner

    and respondent. It also decreed the separation of properties between them

    andordered the equal partition of personal properties located within the country,

    excluding those acquired bygratuitous title during the marriage. With regard to

    the Antipolo property, the court held that it was acquired using paraphernal funds of

    the respondent. However, it ruled that respondent cannot recover his funds because

    theproperty was purchased in violation of Section 7, Article XII of

    the Constitution.The Court of Appeals rendered the assailed decision modifying the

    trial courts Decision. As regards the house,the Court of Appeals ruled that there is

    nothing in the Constitution which prohibits respondent from acquiring

    thesame.Respondent claims that he is not praying for transfer of ownership of the

    Antipolo property but merelyreimbursement; that the funds paid by him for the said

    property were in consideration of his marriage topetitioner; that the funds weregiven to petitioner in trust; and that equity demands that respondent should

    bereimbursed of his personal funds.

    ISSUE: WON respondent is entitled to reimbursement of the funds used for the

    acquisition of the Antipoloproperty.

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    HELD: in the instant case, respondent cannot seek reimbursement on the ground of

    equity where it is clear thathe willingly and knowingly bought the property despite

    the constitutional prohibition.Further, the distinction made between transfer of

    ownership as opposed to recovery of funds is a futile exerciseon respondents part.

    To allow reimbursement would in effect permit respondent to enjoy the fruits of a

    propertywhich he is not allowed to own. Thus, it is likewise proscribed by law. Asexpressly held in Cheesman v.Intermediate Appellate Court: 16Finally, the

    fundamental law prohibits the sale to aliens of residential land. Section 14, Article

    XIV of the 1973Constitution ordains that, "Save in cases of hereditary succession,

    no private land shall be transferred or conveyed except to individuals, corporations,

    or associations qualified to acquire or hold lands of the

    publicdomain." Petitioner Thomas Cheesman was, of course, charged with

    knowledge of this prohibition. Thus,assuming that it was his intention that the lot in

    question be purchased by him and his wife, he acquired no rightwhatever over the

    property by virtue of that purchase; and in attempting to acquire a right or interest

    in land,vicariously and clandestinely, he knowingly violated the Constitution; the

    sale as to him was null and void. In anyevent, he had and has no capacity or

    personality to question the subsequent sale of the same property by hiswife on the

    theory that in so doing he is merely exercising the prerogative of a husband in

    respect of conjugalproperty. To sustain such a theory would permit indirect

    controversion of the constitutional prohibition. If theproperty were to be declared

    conjugal, this would accord to the alien husband a not insubstantial interest

    andright over land, as he would then have a decisive vote as to its transfer or

    disposition. This is a right that theConstitution does not permit him to have.As

    already observed, the finding that his wife had used her own money to purchase the

    property cannot, and willnot, at this stage of the proceedings be reviewed and

    overturned. But even if it were a fact that said wife hadused conjugal funds to makethe acquisition, the considerations just set out to militate, on high

    constitutionalgrounds, against his recovering and holding the property so acquired,

    or any part thereof. And whether in suchan event, he may recover from his wife any

    share of the money used for the purchase or charge her

    withunauthorized disposition or expenditure of conjugal funds is not now

    inquired into; that would be, in thepremises, a purely academic exercise. (Emphasis

    added)WHEREFORE, in view of the foregoing, the instant petition is GRANTED. The

    Decision dated February 26, 2001of the Court of Appeals in CA-G.R. CV No. 59321

    ordering petitioner Elena Buenaventura Muller to reimburse

    respondent Helmut Muller the amount of P528,000 for the acquisition of the land

    and the amount of P2,300,000for the construction of the house in Antipolo City,

    and the Resolution dated August 13, 2001 denyingreconsideration thereof, are

    REVERSED and SET ASIDE. The August 12, 1996 Decision of the Regional TrialCourt

    of Quezon City, Branch 86 in Civil Case No. Q-94-21862 terminating the regime of

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    absolute communitybetween the petitioner and respondent, decreeing a separation

    of property between them and ordering thepartition of the personal properties

    located in the Philippines equally, is REINSTATED

    Case Digest: Chavez v. National Housing Authority

    Posted: August 4, 2010 in Case Digests

    Tags: case, constitution, digest, land, law, nha, Philippines, territory 2

    G.R. No. 164527 15 August 2007

    Ponente: VELASCO, JR., J.

    FACTS:

    On August 5, 2004, former Solicitor General Francisco Chavez, filed an instant

    petition raising constitutional issues on the JVA entered by National Housing

    Authority and R-II Builders, Inc.

    On March 1, 1988, then-President Cory Aquino issued Memorandum order No. (MO)

    161 approving and directing implementation of the Comprehensive and Integrated

    Metropolitan Manila Waste Management Plan. During this time, Smokey Mountain,

    a wasteland in Tondo, Manila, are being made residence of many Filipinos living in asubhuman state.

    As presented in MO 161, NHA prepared feasibility studies to turn the dumpsite into

    low-cost housing project, thus, Smokey Mountain Development and Reclamation

    Project (SMDRP), came into place. RA 6957 (Build-Operate-Transfer Law) was

    passed on July 1990 declaring the importance of private sectors as contractors in

    government projects. Thereafter, Aquino proclaimed MO 415 applying RA 6957 to

    SMDRP, among others. The same MO also established EXECOM and TECHCOM in

    the execution and evaluation of the plan, respectively, to be assisted by the Public

    Estates Authority (PEA).

    Notices of public bidding to become NHAs venture partner for SMDRP were

    published in newspapers in 1992, from which R-II Builders, Inc. (RBI) won the

    bidding process. Then-President Ramos authorized NHA to enter into a Joint

    Venture Agreement with RBI.

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    Under the JVA, the project involves the clearing of Smokey Mountain for eventual

    development into a low cost housing complex and industrial/commercial site. RBI is

    expected to fully finance the development of Smokey Mountain and reclaim 40

    hectares of the land at the Manila Bay Area. The latter together with the

    commercial area to be built on Smokey Mountain will be owned by RBI as enabling

    components. If the project is revoked or terminated by the Government through nofault of RBI or by mutual agreement, the Government shall compensate RBI for its

    actual expenses incurred in the Project plus a reasonable rate of return not

    exceeding that stated in the feasibility study and in the contract as of the date of

    such revocation, cancellation, or termination on a schedule to be agreed upon by

    both parties.

    To summarize, the SMDRP shall consist of Phase I and Phase II. Phase I of the

    project involves clearing, levelling-off the dumpsite, and construction of temporary

    housing units for the current residents on the cleared and levelled site. Phase II

    involves the construction of a fenced incineration area for the on-site disposal of the

    garbage at the dumpsite.

    Due to the recommendations done by the DENR after evaluations done, the JVA was

    amended and restated (now ARJVA) to accommodate the design changes and

    additional work to be done to successfully implement the project. The original

    3,500 units of temporary housing were decreased to 2,992. The reclaimed land as

    enabling component was increased from 40 hectares to 79 hectares, which was

    supported by the issuance of Proclamation No. 465 by President Ramos. The

    revision also provided for the 119-hectare land as an enabling component for Phase

    II of the project.

    Subsequently, the Clean Air Act was passed by the legislature which made theestablishment of an incinerator illegal, making the off-site dumpsite at Smokey

    Mountain necessary. On August 1, 1998, the project was suspended, to be later

    reconstituted by President Estrada in MO No. 33.

    On August 27, 2003, the NHA and RBI executed a Memorandum of Agreement

    whereby both parties agreed to terminate the JVA and subsequent agreements.

    During this time, NHA reported that 34 temporary housing structures and 21

    permanent housing structures had been turned over by RBI.

    ISSUES:

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    Whether respondents NHA and RBI have been granted the power and authority to

    reclaim lands of the public domain as this power is vested exclusively in PEA as

    claimed by petitioner

    Whether respondents NHA and RBI were given the power and authority by DENR to

    reclaim foreshore and submerged lands

    Whether respondent RBI can acquire reclaimed foreshore and submerged lands

    considered as alienable and outside the commerce of man

    Whether respondent RBI can acquire reclaimed lands when there was no

    declaration that said lands are no longer needed for public use

    Whether there is a law authorizing sale of reclaimed lands

    Whether the transfer of reclaimed lands to RBI was done by public bidding

    Whether RBI, being a private corporation, is barred by the Constitution to acquirelands of public domain

    Whether respondents can be compelled to disclose all information related to the

    SMDRP

    Whether the operative fact doctrine applies to the instant position

    HELD:

    Executive Order 525 reads that the PEA shall be primarily responsible forintegrating, directing, and coordinating all reclamation projects for and on behalf of

    the National Government. This does not mean that it shall be responsible for all.

    The requisites for a valid and legal reclamation project are approval by the

    President (which were provided for by MOs), favourable recommendation of PEA

    (which were seen as a part of its recommendations to the EXECOM), and

    undertaken either by PEA or entity under contract of PEA or by the National

    Government Agency (NHA is a government agency whose authority to reclaim lands

    under consultation with PEA is derived under PD 727 and RA 7279).

    Notwithstanding the need for DENR permission, the DENR is deemed to have

    granted the authority to reclaim in the Smokey Mountain Project for the DENR is oneof the members of the EXECOM which provides reviews for the project. ECCs and

    Special Patent Orders were given by the DENR which are exercises of its power of

    supervision over the project. Furthermore, it was the President via the

    abovementioned MOs that originally authorized the reclamation. It must be noted

    that the reclamation of lands of public domain is reposed first in the Philippine

    President.

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    The reclaimed lands were classified alienable and disposable via MO 415 issued by

    President Aquino and Proclamation Nos. 39 and 465 by President Ramos.

    Despite not having an explicit declaration, the lands have been deemed to be no

    longer needed for public use as stated in Proclamation No. 39 that these are to be

    disposed to qualified beneficiaries. Furthermore, these lands have already beennecessarily reclassified as alienable and disposable lands under the BOT law.

    Letter I of Sec. 6 of PD 757 clearly states that the NHA can acquire property rights

    and interests and encumber or otherwise dispose of them as it may deem

    appropriate.

    There is no doubt that respondent NHA conducted a public bidding of the right to

    become its joint venture partner in the Smokey Mountain Project. It was noted that

    notices were published in national newspapers. The bidding proper was done by

    the Bids and Awards Committee on May 18, 1992.

    RA 6957 as amended by RA 7718 explicitly states that a contractor can be paid aportion as percentage of the reclaimed land subject to the constitutional

    requirement that only Filipino citizens or corporation with at least 60% Filipino

    equity can acquire the same. In addition, when the lands were transferred to the

    NHA, these were considered Patrimonial lands of the state, by which it has the

    power to sell the same to any qualified person.

    This relief must be granted. It is the right of the Filipino people to information on

    matters of public concerned as stated in Article II, Sec. 28, and Article III, Sec. 7 of

    the 1987 Constitution.

    When the petitioner filed the case, the JVA had already been terminated by virtue ofMOA between RBI and NHA. The properties and rights in question after the passage

    of around 10 years from the start of the projects implementation cannot be

    disturbed or questioned. The petitioner, being the Solicitor General at the time

    SMDRP was formulated, had ample opportunity to question the said project, but did

    not do so. The moment to challenge has passed.

    Manila Prince Hotel vs GSIS

    Supremacy of the Constitution Filipino First Policy National Patrimony Qualified Filipinos

    Pursuant to the privatization program of the government, GSIS decided to sell 30-

    51% of the Manila Hotel Corporation. Two bidders participated, MPH and Malaysian

    Firm Renong Berhad. MPHs bid was at P41.58/per share while RBs bid was at

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    P44.00/share. RB was the highest bidder hence it was logically considered as the

    winning bidder but is yet to be declared so. Pending declaration, MPH matches RBs

    bid and invoked the Filipino First policy enshrined under par. 2, Sec. 10, Art. 12 of

    the 1987 Constitution**, but GSIS refused to accept. In turn MPH filed a TRO to

    avoid the perfection/consummation of the sale to RB.

    RB then assailed the TRO issued in favor of MPH arguing among others that:

    Par. 2, Sec. 10, Art. 12 of the 1987 Constitution needs an implementing law because

    it is merely a statement of principle and policy (not self-executing);

    Even if said passage is self-executing, Manila Hotel does not fall under national

    patrimony.

    ISSUE: Whether or not RB should be admitted as the highest bidder and hence be

    proclaimed as the legit buyer of shares.

    HELD: No. MPH should be awarded the sale pursuant to Art 12 of the 1987 Const.This is in light of the Filipino First Policy.

    Par. 2, Sec. 10, Art. 12 of the 1987 Constitution is self executing. The Constitution is

    the fundamental, paramount and supreme law of the nation, it is deemed written in

    every statute and contract.

    Manila Hotel falls under national patrimony. Patrimony in its plain and ordinary

    meaning pertains to heritage. When the Constitution speaks of national patrimony,

    it refers not only to the natural resources of the Philippines, as the Constitution

    could have very well used the term natural resources, but also to the cultural

    heritage of the Filipinos. It also refers to our intelligence in arts, sciences andletters. Therefore, we should develop not only our lands, forests, mines and other

    natural resources but also the mental ability or faculty of our people. Note that, for

    more than 8 decades (9 now) Manila Hotel has bore mute witness to the triumphs

    and failures, loves and frustrations of the Filipinos; its existence is impressed with

    public interest; its own historicity associated with our struggle for sovereignty,

    independence and nationhood.

    Herein resolved as well is the term Qualified Filipinos which not only pertains to

    individuals but to corporations as well and other juridical entities/personalities. The

    term qualified Filipinos simply means that preference shall be given to those

    citizens who can make a viable contribution to the common good, because ofcredible competence and efficiency. It certainly does NOT mandate the pampering

    and preferential treatment to Filipino citizens or organizations that are incompetent

    or inefficient, since such an indiscriminate preference would be counter productive

    and inimical to the common good.

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    In the granting of economic rights, privileges, and concessions, when a choice has

    to be made between a qualified foreigner and a qualified Filipino, the latter shall

    be chosen over the former.

    **Section 10. The Congress shall, upon recommendation of the economic and

    planning agency, when the national interest dictates, reserve to citizens of the

    Philippines or to corporations or associations at least sixty per centum of whose

    capital is owned by such citizens, or such higher percentage as Congress may

    prescribe, certain areas of investments. The Congress shall enact measures that will

    encourage the formation and operation of enterprises whose capital is wholly owned

    by Filipinos.

    In the grant of rights, privileges, and concessions covering the national economy

    and patrimony, the State shall give preference to qualified Filipinos.

    The State shall regulate and exercise authority over foreign investments within its

    national jurisdiction and in accordance with its national goals and priorities

    Francisco Tatad et al vs Secretary of Energy

    Equal Protection OilDeregulation Law

    Considering that oil is not endemic to this country, historyshows that the

    government has always been finding ways to alleviate the oil industry. The

    government created laws accommodate these innovations in the oil industry. One

    such law is the Downstream Oil Deregulation Act of 1996 or RA 8180. This law

    allows that any person or entity may import or purchase any quantity of crude oil

    and petroleum products from a foreign or domestic source, lease or own and

    operate refineries and other downstream oil facilities and market such crude oil or

    use the same for his own requirement, subject only to monitoring by the

    Department of Energy. Tatad assails the constitutionality of the law. He claims,among others, that the imposition of different tariff rates on imported crude oil and

    imported refined petroleum products violates the equal protection clause. Tatad

    contends that the 3%-7% tariff differential unduly favors the three existing oil

    refineries and discriminates against prospective investors in the downstream oil

    industry who do not have their own refineries and will have to source refined

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    petroleum products from abroad.3% is to be taxed on unrefined crude products and

    7% on refined crude products.

    ISSUE: Whether or not RA 8180 is constitutional.

    HELD:The SC declared the unconstitutionality of RA 8180 because it

    violated Sec 19 ofArt 12 of the Constitution. It violated thatprovision because it

    only strengthens oligopoly which is contrary to free competition. It cannot be denied

    that our downstream oil industry is operated and controlled by an oligopoly, a

    foreign oligopoly at that. Petron, Shell and Caltex stand as the only major league

    players in the oil market. All other players belong to the lilliputian league. As the

    dominant players, Petron, Shell and Caltex boast of existing refineries of various

    capacities. The tariff differential of 4% therefore works to their immense benefit.

    Yet, this is only one edge of the tariff differential. The other edge cuts and cuts deep

    in the heart of their competitors. It erects a high barrier to the entry of new players.

    New players that intend to equalize the market power of Petron, Shell and Caltex by

    building refineries of their own will have to spend billions of pesos. Those who willnot build refineries but compete with them will suffer the huge disadvantage of

    increasing their product cost by 4%. They will be competing on an uneven field. The

    argument that the 4% tariff differential is desirable because it will induce

    prospective players to invest in refineries puts the cart before the horse. The first

    need is to attract new players and they cannot be attracted by burdening them with

    heavy disincentives. Without new players belonging to the league of Petron, Shell

    and Caltex, competition in our downstream oil industry is an idle dream.

    RA 8180 is unconstitutional on the ground inter alia that it discriminated against the

    new players insofar as it placed them at a competitive disadvantage vis--vis the

    established oil companies by requiring them to meet certain conditions alreadybeing observed by the latter.

    J.G. Summit Holdings vs. CA

    JG SUMMIT HOLDINGS, INC., vs. COURT OF APPEALS, COMMITTEE ON

    PRIVATIZATION, ASSET PRIVATIZATION TRUST and PHILYARDS HOLDINGS G.R. No.

    124293. November 20, 2000

    FACTS:National Investment and Development Corporation (NIDC) and Kawasaki Heavy

    Industries entered into a Joint Venture Agreement in a shipyard business named

    PHILSECO, with a shareholding of 60-40 respectively. NIDCs interest was later

    transferred to the National Government.

    Pursuant to President Aquinos Proclamation No.5, which established the Committee

    on Privatization (COP) and Asset Privatization Trust (APT), and allowed for the

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    disposition of the governments non-performing assets, the latter allowed Kawasaki

    Heavy Industries to choose a company to which it has stockholdings, to top the

    winning bid of JG Summit Holdings over PHILSECO. JG Summit protested alleging

    that such act would effectively increase Kawasakis interest in PHILSECOa

    shipyard is a public utility--and thus violative of the Constitution.

    ISSUE:

    Whether or not respondents act is valid.

    HELD:

    No.

    A shipyard such as PHILSECO being a public utility as provided by law, the following

    provision of the Article XII of the Constitution applies:

    Sec. 11. No franchise, certificate, or any other form of authorization for the

    operation of a public utility shall be granted except to citizens of the Philippines or

    to corporations or associations organized under the laws of the Philippines at least

    sixty per centum of whose capital is owned by such citizens, nor shall such

    franchise, certificate, or authorization be exclusive in character or for a longer

    period than fifty years. Neither shall any such franchise or right be granted except

    under the condition that it shall be subject to amendment, alteration, or repeal by

    the Congress when the common good so requires. The State shall encourage equity

    participation in public utilities by the general public. The participation of foreign

    investors in the governing body of any public utility enterprise shall be limited to

    their proportionate share in its capital, and all the executive and managing officers

    of such corporation or association shall be citizens of the Philippines.

    x x x

    Notably, paragraph 1.4 of the JVA accorded the parties the right of first refusal

    under the same terms. This phrase implies that when either party exercises the

    right of first refusal under paragraph 1.4, they can only do so to the extent allowed

    them by paragraphs 1.2 and 1.3 of the JVA or under the proportion of 60%-40% of

    the shares of stock. Thus, should the NIDC opt to sell its shares of stock to a third

    party, Kawasaki could only exercise its right of first refusal to the extent that its

    total shares of stock would not exceed 40% of the entire shares of stock of SNS or

    PHILSECO. The NIDC, on the other hand, may purchase even beyond 60% of the

    total shares. As a government corporation and necessarily a 100% Filipino-ownedcorporation, there is nothing to prevent its purchase of stocks even beyond 60% of

    the capitalization as the Constitution clearly limits only foreign capitalization.

    Wilson P. Gamboa v. Finance Secretary Margarito Teves, et al., G.R. No. 176579,

    June 28, 2011

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    D E C I S I O N

    CARPIO, J.:

    I. THE FACTS

    This is a petition to nullify the sale of shares of stock of Philippine

    Telecommunications Investment Corporation (PTIC) by the government of the

    Republic of the Philippines, acting through the Inter-Agency Privatization Council

    (IPC), to Metro Pacific Assets Holdings, Inc. (MPAH), an affiliate of First Pacific

    Company Limited (First Pacific), a Hong Kong-based investment management and

    holding company and a shareholder of the Philippine Long Distance TelephoneCompany (PLDT).

    The petitioner questioned the sale on the ground that it also involved an indirect

    sale of 12 million shares (or about 6.3 percent of the outstanding common shares)

    of PLDT owned by PTIC to First Pacific. With the this sale, First Pacifics common

    shareholdings in PLDT increased from 30.7 percent to 37 percent, thereby

    increasing the total common shareholdings of foreigners in PLDT to about

    81.47%. This, according to the petitioner, violates Section 11, Article XII of the 1987

    Philippine Constitution which limits foreign ownership of the capital of a public utilityto not more than 40%, thus:

    Section 11. No franchise, certificate, or any other form of authorization for

    the operation of a public utility shall be granted except to citizens of the

    Philippines or to corporations or associations organized under the laws of

    the Philippines, at least sixty per centum of whose capital is owned by

    such citizens; nor shall such franchise, certificate, or authorization be exclusive in

    character or for a longer period than fifty years. Neither shall any such franchise or

    right be granted except under the condition that it shall be subject to amendment,

    alteration, or repeal by the Congress when the common good so requires. The State

    shall encourage equity participation in public utilities by the general public. The

    participation of foreign investors in the governing body of any public utility

    enterprise shall be limited to their proportionate share in its capital, and all the

    executive and managing officers of such corporation or association must be citizens

    of the Philippines. (Emphasis supplied)

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    II. THE ISSUE

    Does the term capital in Section 11, Article XII of the Constitution refer to the totalcommon shares only, or to the total outstanding capital stock (combined total of

    common and non-voting preferred shares) of PLDT, a public utility?

    III. THE RULING

    [The Court partly granted the petition and held that the term capital in Section

    11, Article XII of the Constitution refers only to shares of stock entitled to vote in the

    election of directors of a public utility, i.e., to the total common shares in PLDT.]

    Considering that common shares have voting rights which translate to control, as

    opposed to preferred shares which usually have no voting rights, the term capital

    in Section 11, Article XII of the Constitution refers only to common shares.

    However, if the preferred shares also have the right to vote in the election of

    directors, then the term capital shall include such preferred shares because the

    right to participate in the control or management of the corporation is exercised

    through the right to vote in the election of directors. In short, the term capital

    in Section 11, Article XII of the Constitution refers only to shares of stock

    that can vote in the election of directors.

    To construe broadly the term capital as the total outstanding capital stock,

    including both common and non-voting preferred shares, grossly contravenes the

    intent and letter of the Constitution that the State shall develop a self-reliant and

    independent national economy effectively controlled by Filipinos. A broad definition

    unjustifiably disregards who owns the all-important voting stock, which necessarily

    equates to control of the public utility.

    Holders of PLDT preferred shares are explicitly denied of the right to vote in the

    election of directors. PLDTs Articles of Incorporation expressly state that the

    holders of Serial Preferred Stock shall not be entitled to vote at any

    meeting of the stockholders for the election of directors or for any other

    purpose or otherwise participate in any action taken by the corporation or its

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    stockholders, or to receive notice of any meeting of stockholders. On the other

    hand, holders of common shares are granted the exclusive right to vote in the

    election of directors. PLDTs Articles of Incorporation state that each holder of

    Common Capital Stock shall have one vote in respect of each share of such stock

    held by him on all matters voted upon by the stockholders, and the holders of

    Common Capital Stock shall have the exclusive right to vote for theelection of directors and for all other purposes.

    It must be stressed, and respondents do not dispute, that foreigners hold a majority

    of the common shares of PLDT. In fact, based on PLDTs 2010 General Information

    Sheet (GIS), which is a document required to be submitted annually to the

    Securities and Exchange Commission, foreigners hold 120,046,690 common shares

    of PLDT whereas Filipinos hold only 66,750,622 common shares. In other words,

    foreigners hold 64.27% of the total number of PLDTs common shares, while

    Filipinos hold only 35.73%. Since holding a majority of the common shares equatesto control, it is clear that foreigners exercise control over PLDT. Such amount of

    control unmistakably exceeds the allowable 40 percent limit on foreign ownership of

    public utilities expressly mandated in Section 11, Article XII of the Constitution.

    As shown in PLDTs 2010 GIS, as submitted to the SEC, the par value of PLDT

    common shares is P5.00 per share, whereas the par value of preferred shares

    is P10.00 per share. In other words, preferred shares have twice the par value of

    common shares but cannot elect directors and have only 1/70 of the dividends of

    common shares. Moreover, 99.44% of the preferred shares are owned by Filipinoswhile foreigners own only a minuscule 0.56% of the preferred shares. Worse,

    preferred shares constitute 77.85% of the authorized capital stock of PLDT while

    common shares constitute only 22.15%. This undeniably shows that beneficial

    interest in PLDT is not with the non-voting preferred shares but with the common

    shares, blatantly violating the constitutional requirement of 60 percent Filipino

    control and Filipino beneficial ownership in a public utility.

    In short, Filipinos hold less than 60 percent of the voting stock, and earn less than

    60 percent of the dividends, of PLDT. This directly contravenes the expresscommand in Section 11, Article XII of the Constitution that [n]o franchise,

    certificate, or any other form of authorization for the operation of a public utility

    shall be granted except to x x x corporations x x x organized under the laws of the

    Philippines, at least sixty per centum of whose capital is owned by such citizens x x

    x.

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    To repeat, (1) foreigners own 64.27% of the common shares of PLDT, which class of

    shares exercises the sole right to vote in the election of directors, and thus exercise

    control over PLDT; (2) Filipinos own only 35.73% of PLDTs common shares,

    constituting a minority of the voting stock, and thus do not exercise control over

    PLDT; (3) preferred shares, 99.44% owned by Filipinos, have no voting rights; (4)

    preferred shares earn only 1/70 of the dividends that common shares earn; (5)preferred shares have twice the par value of common shares; and (6) preferred

    shares constitute 77.85% of the authorized capital stock of PLDT and common

    shares only 22.15%. This kind of ownership and control of a public utility is a

    mockery of the Constitution.

    [Thus, the Respondent Chairperson of the Securities and Exchange Commission

    was DIRECTED by the Court to apply the foregoing definition of the term capital

    in determining the extent of allowable foreign ownership in respondent Philippine

    Long Distance Telephone Company, and if there is a violation of Section 11, ArticleXII of the Constitution, to impose the appropriate sanctions under the law.]

    Liban v. Gordon

    G.R. 175352

    January 18, 2011

    FACTS

    Richard J. Gordon (respondent) filed for a Motion for Clarification and/or for

    Reconsideration on the promulgated Decision by the Court on July 15, 2009. The

    case brought about by the petitioners was regarding to Gordons forfeiture of hisseat in the Senate when he accepted the Chairmanship in the Philippine National

    Red Cross (PNRC). The court ruled that it was not the case, as PNRC is not a

    government-owned and controlled corporation for the purpose of prohibition in Sect.

    13, Art. VI of the 1987 Constitution. The Court, however, further declared void the

    PNRC Charter (as in R.A. 95) insofar as it creates the PNRC as a private

    corporation and consequently ruled that the PNRC should incorporate under the

    Corporation Code and register with the Securities and Exchange Commission if it

    wants to be a private corporation.

    Respondent argues that the validity of R.A. 95 was not an issue in theaforementioned case; the petitioners did not raise its constitutionality. As the court

    decided, the petitioners did not have standing to file the instant petition. Hence, the

    pronouncement of the Court on the validity of R.A. No. 95 should be considered

    obiter.

    ISSUE

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    Are the provisions of R.A. No. 95 valid and constitutional?

    HELD

    Yes. Richard J. Gordons Motion for Clarification and/or Reconsideration and movant-

    intervenor PNRCs Motion for Partial Reconsideration of the Decision in G.R. No.175352 dated July 15, 2009 were granted. The constitutionality of R.A. No. 95, as

    amended, the charter of the Philippine National Red Cross, was not raised by the

    parties as an issue and should not have been passed upon by the Court. The

    structure of the PNRC, being neither strictly private nor public in nature, R.A. 95

    remains valid and constitutional in its entirety.

    Petition for Leave to Resume Practice of Law, Benjamin Dacanay 540 SCRA 424

    FACTS: Petitioner was admitted to the Philippine bar in March 1960. He practiced

    law until he migrated to Canada in December 1998 to seek medical attention for his

    ailments. He subsequently applied for Canadian citizenship to avail of Canadas free

    medical aid program. His application was approved and he became a Canadian

    citizen in May 2004.

    In July 2006, pursuant to Republic Act (RA) 9225 (Citizenship Retention and Re-

    Acquisition Act of 2003), petitioner reacquired his Philippine citizenship. On that

    day, he took his oath of allegiance as a Filipino citizen before the Philippine

    Consulate General in Toronto, Canada. Thereafter, he returned to the Philippines

    and now intends to resume his law practice.

    ISSUE: Whether petitioner may still resume practice?

    RULING: Section 2, Rule 138 of the Rules of Court provides an applicant for

    admission to the bar be a citizen of the Philippines, at least twenty-one years of

    age, of good moral character and a resident of the Philippines.5 He must also

    produce before this Court satisfactory evidence of good moral character and that no

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    charges against him, involving moral turpitude, have been filed or are pending in

    any court in the Philippines.

    Since Filipino citizenship is a requirement for admission to the bar, loss thereof

    terminates membership in the Philippine bar and, consequently, the privilege to

    engage in the practice of law. In other words, the loss of Filipino citizenship ipso jureterminates the privilege to practice law in the Philippines. The practice of law is a

    privilege denied to foreigners.

    The exception is when Filipino citizenship is lost by reason of naturalization as a

    citizen of another country but subsequently reacquired pursuant to RA 9225. This is

    because all Philippine citizens who become citizens of another country shall be

    deemed not to have lost their Philippine citizenship under the conditions of [RA

    9225]. Therefore, a Filipino lawyer who becomes a citizen of another country is

    deemed never to have lost his Philippine citizenship if he reacquires it in accordance

    with RA 9225.

    Before he can can resume his law practice, he must first secure from this Court the

    authority to do so, conditioned on:

    the updating and payment of of IBP membership dues;

    the payment of professional tax;

    the completion of at least 36 credit hours of mandatory continuing legal

    education; this is specially significant to refresh the applicant/petitioners

    knowledge of Philippine laws and update him of legal developments and

    the retaking of the lawyers oath.

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    DEFENSOR-SANTIAGO vs. COMELEC(G.R. No. 127325 - March 19,

    1997)Facts:

    Private respondent Atty. Jesus Delfin, president of Peoples Initiative for Reforms,Mo

    dernization and Action (PIRMA), filed with COMELEC a petition to amend the

    constitution to lift the term limits of elective officials, through Peoples Initiative. He

    based this petition on Article XVII,Sec. 2 of the 1987 Constitution, which provides for

    the right of the people to exercise the power to directly propose amendments to the

    Constitution. Subsequently the COMELEC issued an order directing the publication

    of the petition and of the notice of hearing and thereafter set the case for hearing.

    At the hearing, Senator Roco, the IBP, Demokrasya-Ipagtanggol ang Konstitusyon,

    PublicInterest Law Center, and Laban ng Demokratikong Pilipino appeared as

    intervenors-oppositors. Senator Roco filed a motion to dismiss the Delfin petition on

    the ground that one which is cognizableby the COMELEC. The petitioners herein

    Senator Santiago, Alexander Padilla, and Isabel Ongpinfiled this civil action forprohibition under Rule 65 of the Rules of Court against COMELEC and theDelfin

    petition rising the several arguments, such as the following: (1) The constitutional

    provision onpeoples initiative to amend the constitution can only be implemented

    by law to be passed byCongress. No such law has been passed; (2) The peoples

    initiative is limited to amendments to theConstitution, not to revision thereof. Lifting

    of the term limits constitutes a revision, therefore it isoutside the power of

    peoples initiative. The Supreme Court granted the Motions for Intervention.

    Issues:

    (1) Whether or not Sec. 2, Art. XVII of the 1987 Constitution is a self-executingprovision.(2) Whether or not COMELEC Resolution No. 2300 regarding the conduct

    of initiative onamendments to the Constitution is valid, considering the absence in

    the law of specific provisions onthe conduct of such initiative.(3) Whether the lifting

    of term limits of elective officials would constitute a revision or anamendment of the

    Constitution.

    Held:

    Sec. 2, Art XVII of the Constitution is not self executory, thus, without implementingl

    egislation the same cannot operate. Although the Constitution has recognized or

    granted the right,the people cannot exercise it if Congress does not provide for itsimplementation.The portion of COMELEC Resolution No. 2300 which prescribes rules

    and regulations on theconduct of initiative on amendments to the Constitution, is

    void. It has been an established rule

    thatwhat has been delegated, cannot be delegated (potestas delegata non delegari

    potest). Thedelegation of the power to the COMELEC being invalid, the latter cannot

    validly promulgate rulesand regulations to implement the exercise of the right to

    peoples initiative.The lifting of the term limits was held to be that of a revision, as it

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    would affect other provisions of the Constitution such as the synchronization of

    elections, the constitutional guaranteeof equal access to opportunities for public

    service, and prohibiting political dynasties. A revisioncannot be done by initiative.

    However, considering the Courts decision in the above Issue, the issueof whether

    or not the petition is a revision or amendment has become academic

    ARTURO M. TOLENTINO vs. COMMISSION ON ELECTIONS

    G.R. No. L-34150 October 16, 1971

    FACTS:

    The case is a petition for prohibition to restrain respondent Commission on Elections

    "from undertaking to hold a plebiscite on November 8, 1971," at which the

    proposed constitutional amendment "reducing the voting age" in Section 1 of Article

    V of the Constitution of the Philippines to eighteen years "shall be, submitted" forratification by the people pursuant to Organic Resolution No. 1 of the Constitutional

    Convention of 1971, and the subsequent implementing resolutions, by declaring

    said resolutions to be without the force and effect of law for being violative of the

    Constitution of the Philippines. The Constitutional Convention of 1971 came into

    being by virtue of two resolutions of the Congress of the Philippines approved in its

    capacity as a constituent assembly convened for the purpose of calling a

    convention to propose amendments to the Constitution namely, Resolutions 2 and 4

    of the joint sessions of Congress held on March 16, 1967 and June 17, 1969

    respectively. The delegates to the said Convention were all elected under and by

    virtue of said resolutions and the implementing legislation thereof, Republic Act

    6132.

    ISSUE:

    Is it within the powers of the Constitutional Convention of 1971 to order the holding

    of a plebiscite for the ratification of the proposed amendment/s.

    HELD: The Court holds that all amendments to be proposed must be submitted to

    the people in a single "election" or plebiscite. We hold that the plebiscite being

    called for the purpose of submitting the same for ratification of the people on

    November 8, 1971 is not authorized by Section 1 of Article XV of the Constitution,

    hence all acts of the Convention and the respondent Comelec in that direction arenull and void. lt says distinctly that either Congress sitting as a constituent

    assembly or a convention called for the purpose "may propose amendments to this

    Constitution,". The same provision also as definitely provides that

    "such amendments shall be valid as part of this Constitution when approved by a

    majority of the votes cast at an election at which the amendments are submitted to

    the people for their ratification," thus leaving no room for doubt as to how many

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    "elections" or plebiscites may be held to ratify any amendment or amendments

    proposed by the same constituent assembly of Congress or convention, and the

    provision unequivocably says "an election" which means only one.

    The petition herein is granted. Organic Resolution No. 1 of the Constitutional

    Convention of 1971 and the implementing acts and resolutions of the Convention,insofar as they provide for the holding of a plebiscite on November 8, 1971, as well

    as the resolution of the respondent Comelec complying therewith (RR Resolution

    No. 695) are hereby declared null and void. The respondents Comelec, Disbursing

    Officer, Chief Accountant and Auditor of the Constitutional Convention are hereby

    enjoined from taking any action in compliance with the said organic resolution. In

    view of the peculiar circumstances of this case, the Court declares this decision

    immediately executory. No costs

    Lambino & Aumentado vs COMELEC

    Amendmentvs Revision

    Lambino was able to gather the signatures of 6,327,952 individuals for

    an initiativepetition to amend the 1987 Constitution. That said number of votes

    comprises at least 12 per centum of all registered voters with each legislative

    district at least represented by at least 3 per centum of its registered voters. This

    has been verified by local COMELEC registrars as well. The proposed amendment to

    the constitution seeks to modify Secs 1-7 of Art VI and Sec 1-4 of Art VII and by

    adding Art XVIII entitled Transitory Provisions.These proposed changes will shift

    the president bicameral-presidential system to a Unicameral-Parliamentary form of

    government. The COMELEC, on 31 Aug 2006, denied the petition of the Lambino

    group due to the lack of an enabling law governing initiative petitions to amend theConstitution this is in pursuant to the ruling in Santiago vs COMELEC. Lambino et

    al contended that the decision in the aforementioned case is only binding to the

    parties within that case.

    ISSUE: Whether or not the petition for initiative met the requirements of Sec 2

    ArtXVII of the 1987 Constitution.

    HELD:The proponents of the initiative secure the signatures from the people. The

    proponents secure the signatures in their private capacity and not as public

    officials. The proponents are not disinterested parties who can impartially explain

    the advantages and disadvantages of the proposed amendments to the people.The proponents present favorably their proposal to the people and do not present

    the arguments against their proposal. The proponents, or their supporters, often

    pay those who gather the signatures. Thus, there is no presumption that the

    proponents observed the constitutional requirements in gathering the signatures.

    The proponents bear the burden of proving that they complied with the

    constitutional requirements in gathering the signatures that the petition

    contained, or incorporated by attachment, the full text of the proposed

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    amendments. The proponents failed to prove that all the signatories to the

    proposed amendments were able to read and understand what the petition

    contains. Petitioners merely handed out the sheet where people can sign but they

    did not attach thereto the full text of the proposed amendments.

    Lambino et al are also actually proposing a revision of the constitution and not amere amendment. This is also in violation of the logrolling rule wherein a proposed

    amendment should only contain one issue. The proposed amendment/s by

    petitioners even includes a transitory provision which would enable the would-be

    parliament to enact more rules.

    There is no need to revisit the Santiago case since the issue at hand can be decided

    upon other facts. The rule is, the Court avoids questions of constitutionality so long

    as there are other means to resolve an issue at bar.

    ***NOTE: On November 20, 2006 in a petition for reconsideration submitted by theLambino Group 10 (ten) Justices ofthe Supreme Court voted that Republic Act 6735

    is adequate.

    ****RA 6735: An Act Providing for a System of Initiative and Referendum and

    Appropriating Funds Therefor