Citation preview
was rece
on
uel Vill
No. 12 Soc
t
rv
Gove
r
nm
e
n
FIRST DIVISION (x
soc iat
ion of
SAL
V
ELASC0,JR.,7.
ckdrop, the
,
se
C
OFED
ocom
ark
ts an
he CIIF levy . T e basic
complaint also con
tained allega
m
ent
ported
c
o
c
onut
0033-F, as PS
ur
t
eso
lu
t
A, wh
f the
lve G.R. Nos
o
n
d
econ
s
ol
070
5
This
from
Decis
ill
eg
i
g
th
coconut levy f
lect
coco
l
evy .20
t
f
ifty-five
cenlavo
iption by the
n
f
us
Sect
attained
a
al isting Sp cial a d Fidu i ry F
unds
and
as
a
gen
e
ra
l
f
e
ontr
e
c
o
c
t
di
r
ec
wh
ich
the
o
rom
the
se
lle
add
i
t
i
lusive a
nd personal
op tion,31
785
7
ond a
fa ili
ties at
stribute, for free,
Exec
u
ry effort
oviso t
hat t
echnica l
n the names of (a) more than
a million coconu
t
fa
ituted before the Sand
lares et al
t an
t
s/eve
t
ulate,
inte
p
prova
seque
stered
t
o
n
certio
r
a
r
i,
g
now
[UC
P
in
p
OFED
b
ting
sh
ar
e
p
wi
th
thes
e
198
6 ,
4
6
am
o
,
s
a
i
d
en
tion 5, Ar icle II
I
of
B
allares,
the
dings and evide
xtent
of
pe of the
& 178193
3
o. 232
1468
are attac
e-cite
Motion
and in h
s
e
n-f c
Ba
nk (
th
e
Bank
ontr
n
c
umbran
sed in b
onstitute
a
ny
b
r
ea
c
n a
f the B
s.
1
77857-58
178193
o
tr
an
sf
nent so
re
f
a
vora
h
a
c
qui
r
a
nd
c
onti
While serv
ard of
2/3) of the
ares, with a p
t
lity of the Bank and con
tinuity of
p
te
ec
t
e
d
es in acc
il
l
i
on
he
Subs
n
e
r
s
or
p
ine
e
e outstanding
ation of the Bank
Coc
onu
Bank;
10
or
i d pita sto k or a y in r ase
ther
e
of,
t
o
subscr
n t
h Ba
ween
Pedro
Coju
a
. , .
and in behalf o
et
h
shares, t
he OPTIO
N SH
LAINTIFF S
'755;
urs
ater r
the 'PCA for t
U
B
whic
Jr. pursuan
, 1975
A
gre
e
me
l. and C
2
6
0 ;
c
u
ject
UCPB
shar
e
s .
nt said CO
1975 (
E
78 93
n
ances o
of own rship o
P
ARA
T
SUMMARY
JUDGMENT
d
ly or
Ill
re
consid
eration
of
CCSF, are
o, Jr. date
f
e
nd
an
A with
with respe
h
av
h
From
PS
M Su
r
c
I of P .
D. No. 1468 (
Rev sed C
s; and
ea
SMC
sh
6260
78i7
3-
F
F comp
anies a
a
s
cribe
gc
es
mp
a
n
i
quity
and
bo
r
rowed
The M
filed by
3
R
o
x
as
upposedly sold c
,
u
. 138-
539)
15
The
MC
Sha
res
Th
evelopment, In
res
adjudged
h
s
we
r
COFE
is
OFED
s
separat
ub-issues ha
d
on the nece
IF
c
ompa
nies.
q
uestered assets sough t to be rec vered
are ill-gotten in
the context
s belong to cocon
n
to the
recovery o
n record t
d
e il got en wealth cases readily
revea
t
tribu
ted
t
fa
d in Execut
ion 5 of A
he
P
po
e
legislatur
e
i
merely
auth
detai
s they allowed the
coconut farmers, do not c
on
stitut
e
a
ut le
&
Sandiganbayan in bot
the
pre
l
imin
The Sandiganbayan has
mpla
in
t
s
ure of the
removed
fr
o
pro
Mepum
uing
n be finally
risdictio
n
p
rinci
86
7857
-58
17
f
t wrote in Alli
th
e
par
ti
b
n
da
n
ts,
p
erc
c
o
nsidered
spe
c
i
al
pu
r
chase
i
n
tere
s
th
ith h cocon
e
r
fiducia
the
ON
o
m
p
etin
oil
m
ill
o
utsta
n
ding
shar
es
ig
tting
up
, throug
.
ation ...
r
ian
o
turn owned by
proprietary in
terest over
m el
more tha
t levy-
os, his
u lt f improper u e, co v rsion
or
diversion of government fu
-
E.O .
N
o .
14,
Series
of
1986
stit
u
te
O
or
d
ers
i
n
ten
d
ed
t
nut
r a prel
th
e
C
ljam v, Si
decision and
effect
o
n
i
tively
p
articipa
t
e
d
, over the
a
l
urs
dicti
o
t
ance
14, as
/ r
RA 237, 250-2
6, ab
i
t
t
ted to a
n
ee
o
f
million coco ut fann
d
a
s
to
ecisely to
s
r.
a
nom i
w ere transferred to by Pres. M
arcos, his cronies
or his associates. To this
chara
c
teri
zat
he
Sa
.O
uired, upon
the delive
l
t
e
in
pe
h
after the
formal of
i
n
tion sup
ial
f
ed to a j
A
t
r de
t
rk Sugar R
ep emb
ment in his favor
r any part thereof
in
terrog
at
ing
counse
not
been
violated
ion Omni
i
t may be gi
e
ccuse
d
a
lay
l, and
ic j
e
r
t
ssive dela
se. M
l
eged
breach
of
re unconstitut
e
2009 5 8
l
a
n
d
wro
n
CA adminis
ow
w i
O.
N
o
s.
the reco
t
u
r
chas
ed
as
t
ri
-5 8
d, Sec
o
. 755,
h
ereunder
quote
d
ers to acquire
rm ers
c
ollecti
ons
u
nd
d
lunik
ial
ec
onomic
p
lan
s
an
c
on
fi
d
uciary funds and do not form
part of the general fu
nds of t
so b
h
e
gener
al
h
ei
o
con
tituti
ona
l
p
roscription
odily
th
]
,
8
t
l
y
cons
tit
utiona
l
5 and the laws
ti
o
b
ut
io
t
era
e
c
be ra
ised late
r.... I
t
u
, th
conomic
e
e aforesaid two [P
Ds]. P.D. No. 755
alleged ly legit mized the high y ano
alous and i
rregular use and
]
aw
nd...
As
inand
E
c
o
m
pl
ai
n
t
a
nd
d
efen
d
i
on
e
d
an
d
wh
e
ants
e Iheir
l ( (
,(, i
ynn, as
ferent
coc
o
nu
ly reiterated i
the law of
the case prin
ciple as fo
bee
the lower
p
osed
o
al issue was predica
taxing
p
u
Th
nut lev
shed
ti
c
l
ca
s
Re
s
oluti
o
n
o
f
Decem
be
r
n dated
March 26
egoin
g
c
Ca
se
, i
t
onut levy
r
l
ic
be
iv
e
r
herent power of taxation. A
s We w rote i
n
rties, exacted by the State by
virtue of its so
v
ereignt
f
ro
m
n
g
r
coll
w
r
exacted on
n
(c) The
d
v
four takes judicial
t
a
ll
ocate
d
ne of t
. 1
47062-64
, Decemb
.
c
p
urp
, w ith the intent
age to p
rprises, that
law cannot
be sa
id to
r woul
excl
usive
ha
t
's econ
omy an
oping the ent
hat t
6006, Mar
cial fiat
lhc conversio
idd
essed
belo
s
e :
Th
e
st
abilizati
e
cient to consti
k in
ank. No. I.-77 1'M, Marc 15, 19K8, 158
SCRA 626,
633-34 ;
RA 462, 485-
funds of the g
c
w s
ii/hl^h <
he point, P.D
levies are
.
3
; and
all
othe
.O. N
thai the funds ar
larly
t
rom the coconut levy shall be
deposited with
the PNB
1234,
e
nd
A
an only h
enera l
fund. C
owned by privat
b
o pay fo
shal
l
os.
77857-
58
os
rm
i
dvance
pro tection of the e tire coco nut i
dustry ,
and even ore i portantly,
for t e
then that the foregoing
provisions of P.D
No. 276 inte
D
. Nos.
75
5,
9
61
an
d
168 inso far as they declared, as
the case may be,
tha
t:
r
rmers a
/or fi
4 or t
l
at
r
e
ed,
d
fund -
he
pol
i
c
e
and
(axi
ng
pow
ry and its fa
Pascual
v
The
Secretar
e essent
l advantage
indivi
dual
ve the
C
A
Ad
m
in
is
tion 1
t
ist
r
i
b
s of sl cks i
n
ll be a
d
istri
bu
ti
r
o
r
g
anization,
ulations
0
74
o
a
ccelerat
e
and as a consequ
of prioriti
res of the bank
blic funds h e l gitimately beco p iva
t
e
proper
t
ies
. ' (Kniphasis
o
@
g
a
ti
l
e
gis
Two test
i nt sta
No.
the dec ee authorizes
titled to own UCPB shares?
If so, ho many share
s shall be
n t
s
on
l
e
ine, sta
n
d
erita
b
t the level
nn
o
of the
s or the re
ru
ctio
g
how thes
lement
nted out by the
nz
onut farmer
who alre ady go t the ir bank
shares, by giving them e
x
CA
u
n
d
r
e
g
fa
vo
rite
s
bru
a
r
l is now : How
is it that shar
es o
ol
der
s
nother had had so
urp
m
t e PCA
ish tha
plation f P.D. 898 the inte
n tion
w ise v
"COA") as a
Sr
i
' i
o
A
ud
ordance w
d, f
u
n
d
er
ll be
any
p
ar.ime
l
ers
set
PB shares
w
e
ver
dec
l
aring
Ih
t
inent
provisions
m in thei
e such
ut aud
er
properly
. N
be
7
5
) whic
II o i' P.D
tion 3 of
P
S
o. 96
u
b
jec
ttached
, the 14 CII
nver
s
ely
, the
se
co
m
w hose capitaliza tion com
es from the
U
CPB,
co
c
her
e
u
t
h
o
riz
d
t
o ely for t
res
the
65
e CIIF b
s
tablished
to
b
p
IF Oi
c
ome
COCOI I.D, the Stale s av wed po
licy o
r purpos
c
rs
, th
he enhanced by a
nd expressed under Sectio
nconstit
u
t
cted
aws and ev
o
r
ta
n
the Sandiga
nqui
re
whethe
r
evie
d
for
d pa
u
a
oconut levy
nconstitutional y
t
c
onf
e
n
ff
ec
w
i
c
ipa
he
disqui
s
it
ion
S
e
e
e
a
y
30,
s
val
s
d
ec
latter
s
h
a
ative or
Co.
, Inc
-
sted, o
bet
wee
n
r
sai
d investo
rs who
made inv
he lands
n
ger
lleged
fa
rme
r
u
C
oconu
N
um and lo
-
1, 1975
payments under R.A
e distributio
onut
n the
6
0
utio
n
which we
e levy pa
t
r mi
t
ho Ihe
se far
mers are
, or woul
d be.
We cannot
sis to the
extreme pre ud ice of he o l er.4. ill io
n c co nut far rs xecuti e rder
No . 747
ch
w
ou
ld
n by th
u adequat
k
Se
c
tio
F 975 O ERNI
s of stock of
v
alue
o
o
ta
re, a tota
w ide
ly di
stributed a
75 ;
NOW
, THERE
Resolution No. 033 -
8 of the
inistrative O der
to coconut
farmers who
already gol
then
t
r
ansfe
r
r
Hank. The di tribution to the latt
er was made on the basis of
per
c
apita
5
he in terest of
for t
r
[he
,
ws
he ones who
w ill no I be b efit b the
istri u
tion of
po l
no less,
u
ly no
77857-58 a
nd 1
s
e
ctively amen
No.
Summa
r
y
Y
JU
m
e
5 wh
ich m
r
trave e
a e
85 - 8
lic o f
plainti f i
h
is
S
EQU
E
STER
E
8