C.R.A.C Method

Anne Bustamante | Gela Gaffud | Noel Geologo | Kaye Rosario| Karen UmangayNarra v RedmontG.R. No. 195580 April 21, 2014Facts: Respondent Redmont Consolidated Mines Corp. (Redmont), a ilipino !orporation, "anted to underta#emininga!ti$itiesin%ala"an&ut dis!o$eredt'at t'eareasit soug't toe(plore"erealready!o$ered&yt'eMineral %rodu!tion )'aring Agreement (M%)A) appli!ations of petitioners Narra Ni!#el Mining and *e$elopmentCorp. (Narra), +esoro Mining and *e$elopment, ,n!. (+esoro) and M!Art'ur Mining, ,n!.(M!Art'ur).-n .anuary /,/001,respondentfiledpetitions for t'e denial ofsaid appli!ations&efore t'e%anelofAr&itrators (%-A) of t'e *epartment of 2n$ironment and Natural Resour!es (*2NR), alleging t'at MBMResour!es, ,n!. (MBM,), a 3004 Canadian !orporation, o"ns and !ontrols at least 504 of t'e petitioners6 !apitalsto!#. 7en!e, under t'e Constitution3, t'ey are dis8ualified from engaging in mining a!ti$ities t'roug' M%)Asand may only enter into inan!ial or +e!'ni!al Assistan!e Agreements (+AA). -n .une 39, /001, petitioners 'ad t'eir indi$idual M%)A appli!ations !on$erted to +AAs, "'i!'"eregranted, &ut "ere su&se8uently re$o#ed on April 5, /033. %etitioners a$erred t'at: (3) t'ey are ;8ualified persons< under t'e %'ilippine Mining A!t of 3==9 (MiningA!t)/> (/) t'eir nationality is immaterial &e!ause t'ey also applied for +AAs> (?) under t'e ;!ontrol test,< t'ey are%'ilippinenationalssin!eilipinoso"n504of t'eir !apital> (@) %-A'asnoAurisdi!tiono$er t'eissuesinrespondent6s petition> and (9) respondent 'as no personality to sue t'em.Procedural History:-n *e!em&er 3@, /001, t'e %-A issued a Resolution dis8ualifying petitioners from gaining M%)As. %etitionersappealed "it' t'e Mines AdAudi!ation Board (MAB), "'i!' re$ersed t'e %-A Resolution. Respondent appealedt'e MAB de!ision &efore t'e Court of Appeals (CA), "'i!':(3) ordered t'e re$ersalof t'e MAB de!ision> (/)up'eld t'e %-AResolution&e!ause after usingt'e;grandfat'er rule,< t'ey are foreign!orporations> (?)re!ommendedt'e*2NR)e!retarytoreAe!t petitionersB M%)A appli!ations> and(@)ruledt'at t'e%-A 'asAurisdi!tion o$er t'e issues &ut is limited to t'e resolution of t'e dispute.Issues:3. ,s t'e !ase moot !onsidering t'at t'e petitioners !on$erted t'eir M%)A appli!ations into +AAsC/. *id t'e CA err in finding dou&t in t'e petitioners6 50D@0 ilipinoDforeign e8uity o"ners'ip and in applyingt'e grandfat'er ruleC?. Are petitioners !onsidered ilipino !orporations and may &e granted M%)As, "'en t'eir !ommon maAorin$estor is a 3004 Canadian !orporationC3 )e!tion /, Arti!le E,,. All lands of t'e pu&li! domain, "aters, minerals, !oal, petroleum, and ot'er mineral oils, all for!es of potential energy, fis'eries, forests ortim&er, "ildlife, flora and fauna, and ot'er natural resour!es are o"ned &y t'e )tate. Fit' t'e e(!eption of agri!ultural lands, all ot'er natural resour!es s'all not&e alienated. +'e e(ploration, de$elopment, and utiliGation of natural resour!es s'all &e under t'e full !ontrol and super$ision of t'e )tate. +'e )tate may dire!tlyunderta#e su!' a!ti$ities, or it may enter into !oDprodu!tion, Aoint $enture, or produ!tionDs'aring agreements "it' ilipino !itiGens, or !orporations or asso!iationsat least si(typer !entumof "'ose !apital is o"ned &y su!' !itiGens.)u!' agreements may &e for a period not e(!eeding t"entyDfi$e years, rene"a&le for notmore t'an t"entyDfi$e years, and under su!' terms and !onditions as may &e pro$ided &y la". ,n !ases of "ater rig'ts for irrigation, "ater supply fis'eries, orindustrial uses ot'er t'an t'e de$elopment of "ater po"er, &enefi!ial use may &e t'e measure and limit of t'e grant.(((+'e%resident mayenter intoagreements "it' foreignDo"ned !orporations in$ol$ing eit'er te!'ni!al or finan!ial assistan!efor largeDs!alee(ploration,de$elopment, andutiliGationof minerals, petroleum, andot'er mineral oilsa!!ordingtot'egeneral termsand!onditionspro$ided&yla", &asedonreal!ontri&utions to t'e e!onomi! gro"t' and general "elfare of t'e !ountry. ,n su!' agreements, t'e )tate s'all promote t'e de$elopment and use of lo!al s!ientifi!and te!'ni!al resour!es.(((/)e!tion ?(a8) HQualified personH means any !itiGen of t'e %'ilippines "it' !apa!ity to !ontra!t, or a !orporation, partners'ip, asso!iation, or !ooperati$eorganiGed oraut'oriGed for t'epurpose ofengaging in mining, "it' te!'ni!aland finan!ial!apa&ilityto underta#e mineralresour!es de$elopmentand dulyregistered in a!!ordan!e "it' la" at least si(ty per !ent (504) of t'e !apital of "'i!' is o"ned &y !itiGens of t'e %'ilippines: %ro$ided, +'at a legally organiGedforeignDo"ned!orporation s'all &edeemeda 8ualified person forpurposes ofgranting an e(ploration permit, finan!ialor te!'ni!alassistan!eagreement ormineral pro!essing permit.@. *id t'e CA err in applying t'e res inter alios acta or Hadmission &y !oDpartner or agentH rule "'en it usedt'e )ummary of )ignifi!ant A!!ounting %oli!ies )tatement of MBM,, "'i!' is neit'er a party to t'e !asenor a partner of petitionersC9. *id t'e %-A 'a$e Aurisdi!tion to settle t'e issues in Redmont6s petitions against Narra, M!Art'ur, and+esoroCHeld and Ratio:1.No, beause t!e e"eptions to t!e mootness priniple appl#.A !aseismoot "'enit !easestopresent aAusti!ia&le!ontro$ersy&e!auseof super$eninge$ents,"arranting its dismissal. 7o"e$er, in $avid v. %aapa&al'Arro#o, t'e e(!eptions to t'is prin!iple are, if:3. t'ere is a gra$e $iolation of t'e Constitution>/. t'e e(!eptional !'ara!ter of t'e situation and paramount pu&li! interest is in$ol$ed>?. t'e !onstitutionalissue raised re8uires formulation of !ontrolling prin!iples to guide t'e &en!', t'e&ar, and t'e pu&li!> and@. t'e !ase is !apa&le of repetition yet e$ading re$ie".All e(!eptions are present 'ere. irst, MBM, $iolated )e!tion / of Arti!le E,, of t'e Constitution againstforeignminingint'e %'ilippines.)e!ond,MBM,6s!orporate layeringisof e(!eptional !'ara!terandin$ol$esparamount pu&li! interest &e!ause it affe!ts t'e use of our natural resour!es. +'ird, t'e Court 'as still no definiteruling regarding t'e instant !ase. inally, t'e issues in$ol$ed are !apa&le of repetition yet e$ading re$ie", sin!eMBM, !an !ontinue utiliGing dummies to !urtail t'e !onstitutional pro'i&ition. urt'er, on April 5, /033, t'e -ffi!e oft'e %resident re$o#ed petitioners6 +AAs.+'erefore, t'e )upreme Court !an still re$ie" t'e !ase.2.No, beause t!e attendant fats and irumstanes reate doubt as to t!e petitioners( )0'40 *ilipino'forei&n e+uit# o,ners!ip. Underpara&rap!-of $./.pinionNo. 20, t'erearet"oteststodeterminet'enationalityof a!orporation. +'e first part of t'e paragrap'? refers to t'e ;!ontrol test,< "'ile, t'e se!ond part "'i!' pro$ides, "ifthe percentage of the Filipino ownership in the corporation or partnership is less than 60%, only the number ofshares corresponding to such percentage shall be counted as Philippine nationality,H refers to t'e more stringent;grandfat'er rule.