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Case Digests- Statutory Construction

 

Government of the Phil. Islands v. HSBC, G.R. No. 44257, 22 November 1938

 

Facts:

The appellees are banks doing business in the Philippines. This has been brought about  by the appellant to determine the liability of the appellees under section 11 of Act No. 4007. All the appellees demurred to the complaint upon the ground that it did not state facts sufficient to constitute a cause of action. Deeming the statutory provision relied upon by the appellant was unconstitutional. The National City Bank of New York alleged further, in support of the demurrer filed by it, that there was a misjoinder of parties defendant, and that section 11 of Act No. 4007 did not impose any tax upon national banking associations, in which class it belonged. The court below sustained the demurrers filed by the appellees, on the sole ground that the complaint did not allege a cause of action, because the statutory provision involved was unconstitutional.

It questions now the constitutionality of section 11 of Act No. 4007, which reads as follows:

"Sec. 11. The provisions of existing law to the contrary notwithstanding, the total annual expenses of the Bureau of Banking shall be reimbursed annually to the Government by assessment levied upon all banking institutions subject to inspection by the Bank Commissioner. The proportion of expenses of the Bureau of Banking to be assessed against each such banking institution shall be the same as the proportion which its average total assets bear to the average total assets of all such banking institutions during the year in which the expenses were incurred."

Appellees withstand that the subject matter  in this section is not embraced in the title of the Act, in violation of section 3 of the Jones Law which provides, among other things: "That no bill which may be enacted into law shall embrace more than one subject, and that subject shall be expressed in the title of the bill." This provision is similar to those found in the constitutions of most of the Stales of the Union. It has been said that the purpose of such a provision is to prevent the evils of so-called "omnibus bills" and surreptitious or unconsidered legislation. "The mischief sought to be remedied by the requirement of a single subject or object of legislation was the practice of bringing together in one bill matters having no necessary or proper connection with each other but often entirely unrelated and even incongruous. By the practice of incorporating in proposed legislation of a meritorious character provisions not deserving of general favor but which, standing alone and on their own merits, were likely to be rejected, measures which could not have been carried without such a device and which were sometimes of a pernicious character were often incorporated in the laws; for, to secure needed and desirable legislation, members of the legislature were, by this means, often induced to sanction and actually vote for provisions which, if presented as independent subjects of legislation, would not have received their support. It was also the practice to include in the same bill wholly unrelated provisions, with the view of combining in favor of the bill the supporters of each, and thus securing the passage of several measures, no one of which could succeed on its own merits. To do away with this hodge podge or 'log rolling' legislation was one, and perhaps the primary, object of these constitutional provisions. Another abuse that developed in legislative bodies was the practice of enacting laws under false and misleading titles, thereby concealing from the members of the legislature, and from the people, the true nature of the laws so enacted. It is to prevent surreptitious legislation in this manner that the subject or object of a law is required to be stated in the title. While the objects of these constitutional provisions are variously stated, the authorities are agreed that they were adopted to remedy these and similar abuses. The purposes of these constitutional provisions have been summarized as follows: (1) to prevent 'log rolling' legislation; (2) to prevent surprise, or fraud, in the legislature by means of provisions in bills of which the titles give no intimation; and (3) to apprise the people of the subject of legislation under consideration." (25 R. C. L., pp. 834-836.)

The title of Act No. 4007 is: "An Act to reorganize the departments, bureaus and offices of the Insular Government, and for other purposes." At the time of the passage of this Act, the Bureau of Banking was already in existence as one of the bureaus of the Insular Government. (Act No. 3519.) It seems clear therefore that that bureau is embraced in that title. On the other hand, the contents of section 11 are germane to and connected with the organization and maintenance of said bureau.

 

 

Issue:

            Whether or not section 11 of Act No. 4007 is constitutional.

 

Ruling:

Yes.  Section 11 of Act No. 4007 is constitutional. It does not, however, apply to the appellee, the National City Bank of New York. The National City Bank of New York, being an agency of the United States, was not subject to taxation by the Philippine Government except as permitted by Act of Congress. The form of taxation imposed under section 11 of Act No. 4007 was not permitted by any act of Congress. (Posadas vs. National City Bank, 296 U. S., 497; 80 Law. ed., 351.)

 

Eugenio v. Drilon, G.R. No. 109404, 22 January 1996

Facts:

On May 10, 1972, private respondent purchased on instalment basis from petitioner and co-owner Fermin Salazar, two lots in the E & S Delta Village in Quezon City.

Acting on complaints for non-development docketed as NHA Cases Nos. 2619 and 2620 filed by the Delta Village Homeowners' Association, Inc., the National Housing Authority rendered a resolution on inter alia ordering petitioner to cease and desist from making further sales of lots in the said village or in any project owned by him.

While NHA Cases Nos. 2619 and 2620 were still pending, private respondent filed with the Office of Appeals, Adjudication and Legal Affairs (OAALA) of the Human Settlements Regulatory Commission (HSRC), a complaint (Case No. 80-589) against petitioner and spouses Rodolfo and

Adelina Relevo alleging that, in view of the above NHA resolution, he suspended payment of his amortizations, but that petitioner resold one of the two lots to the said spouses Relevo, in whose favor title to the said property was registered. Private respondent further alleged that he suspended his payments because of petitioner's failure to develop the village. Private respondent prayed for the annulment of the sale to the Relevo spouses and for reconveyance of the lot to him.

Sometime later, the OAALA rendered a decision upholding the right of petitioner to cancel the contract with private respondent and dismissed private respondent's complaint. On appeal, the Commission Proper of the HSRC reversed the OAALA and, applying P.D. 957, ordered petitioner to complete the subdivision development and to reinstate private respondent's purchase contract over one lot, and to immediately refund to the complainant-appellant (herein private respondent) all payments made thereon, plus interests computed... at legal rates from date of receipt hereof until fully paid. The respondent Executive Secretary, on appeal, affirmed the decision of the HSRC and denied the subsequent Motion for Reconsideration for lack of merit and for having been filed out of time. Petitioner has now filed this Petition for review before the Supreme Court.

 

Issue:

            Whether or not Executive Secretary Drilon showed a grave abuse in discretion when he applied P.D. 957 and concluded that the non-development of the E & S Delta Village justified private respondent's non-payment of his amortizations.

 

Ruling:

No. There was no show of  grave abuse in discretion when he applied P.D. 957. The intent of the law, as culled from its preamble and from the situation, circumstances and conditions it sought to remedy, must be enforced. as P.D. 957 is undeniably applicable to the contracts in question, it follows that Section 23 thereof had been properly invoked by private respondent when he desisted from making further payment to petitioner due to petitioner's failure to develop the subdivision project according to the approved plans and within the time limit for complying with the same. Furthermore, respondent Executive Secretary also gave due weight to the following matters: although private respondent started to default on amortization payments beginning May 1975, so that by the end of July 1975 he had already incurred three consecutive arrearages in payments, nevertheless, the petitioner, who had the cancellation option available to him under the contract, did not exercise or utilize the same in timely fashion but delayed until May 1979 when he finally made up his mind to cancel the contracts. But by that time the land purchase agreements had already been overtaken by the provisions of P.D. 957, promulgated on July 12, 1976.

 

Antonio v. Miranda, G.R. No. 135869, 22 September 1999

 

Facts:

            The parties involved in this case were rival candidates for Punong Barangay of Brgy. Ilaya, Las Pinas City, Metro Manila. After the Board of Canvassers proclaimed that appellant Rustico Antonio had won, appellee Vicente Miranda, Jr. filed an election protest Election Protest Case No. 97-0017 against Antonio before the Metropolitan Trial Court of Las Pinas City.

            On March 9, 1998, the Trial Court rendered a decision which Antonio admitted that he received  on 18 March 1998. Subsequently, Antonio filed a Notice of Appeal with the trial court on 27 March 19985 or nine days after receipt thereof. Meanwhile Miranda moved to execute the decision of the trial court, the court denied the motion for execution.

            Antonio, on 10 August 1998, received from COMELEC an order which stated that he failed the petition because it lapsed the five-day period allowable to issue an appeal. He contended that he followed R.A. 6679 and the Omnibus Election Code. COMELEC contended that Section 21 of Rule 35 of the COMELEC Rules of procedure should be followed which was five days upon receipt of the order.

 

Issue:

            Whether or not the period to appeal a decision of a municipal trial court to the COMELEC in an election protest involving a barangay position be 5 days as per COMELEC Rules of Procedure or ten days as provided for in R.A. 6679 and the Omnibus Election Code.

 

Ruling:

            The Comelec Rules of Procedure in Rule 37 Section 21 which states that an appeal should be within five days upon receipt of the decision should be followed. It is not only mandatory but also jurisdictional. The present appeal should be dismissed. In the case at bar, Antonio filed his notice before the trial court nine days upon receipt of the decision appealed from or four days after the prescribed five day period. The failure to perfect an appeal within the prescribed period as required by the rules has the effect of defeating the right of appeal of a party and precludes the appellate court from acquiring jurisdiction over the case.

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