Contracts and Wills Digest

8/10/2019 Contracts and Wills Digest

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CONTRACT

ARTURO M. TOLENTINO VS. THE SECRETARY OF FINANCE and THE

COMMISSIONER OF INTERNAL REVENUE

1994 Aug 25 G.R. No. 115455 (235 SCRA 630)

FACTS:The valued-added tax (AT) !" lev!ed o# the "ale$ %a&te& o& ex'ha#ge o good"a#d &oe&t!e" a" *ell a" o# the "ale o& ex'ha#ge o "e&v!'e". +t !" e,u!vale#t to 10 o

the g&o"" "ell!#g &!'e o& g&o"" value !# o#e/ o good" o& &oe&t!e" "old$ %a&te&ed o&

ex'ha#ged o& o the g&o"" &e'e!t" &o the "ale o& ex'ha#ge o "e&v!'e". Reu%l!' A't

No. 16 "ee" to *!de# the tax %a"e o the ex!"t!#g AT "/"te a#d e#ha#'e !t"

ad!#!"t&at!o# %/ ae#d!#g the Nat!o#al +#teal Reve#ue Code.

The Cha%e& o Real "tate a#d u!lde&" A""o'!at!o# (CRA) 'o#te#d" that the

!o"!t!o# o AT o# "ale" a#d lea"e" %/ v!&tue o 'o#t&a't" e#te&ed !#to &!o& to the

ee't!v!t/ o the la* *ould v!olate the 'o#"t!tut!o#al &ov!"!o# o #o#-!a!&e#t o'o#t&a't".

ISSUE:hethe& R.A. No. 16 !" u#'o#"t!tut!o#al o# g&ou#d that !t v!olate" the

'o#t&a't 'lau"e u#de& A&t. +++$ "e' 10 o the !ll o R!ght".

RULING:No. The Su&ee Cou&t the 'o#te#t!o# o CRA$ that the !o"!t!o# o the

AT o# the "ale" a#d lea"e" o &eal e"tate %/ v!&tue o 'o#t&a't" e#te&ed !#to &!o& to

the ee't!v!t/ o the la* *ould v!olate the 'o#"t!tut!o#al &ov!"!o# o #o#-!a!&e#t o

'o#t&a't"$ !" o#l/ "l!ghtl/ le"" a%"t&a't %ut #o#ethele"" h/othet!'al. +t !" e#ough to "a/that the a&t!e" to a 'o#t&a't 'a##ot$ th&ough the exe&'!"e o &ohet!' d!"'ee#t$

ette& the exe&'!"e o the tax!#g o*e& o the State. 7o& #ot o#l/ a&e ex!"t!#g la*" &ead

!#to 'o#t&a't" !# o&de& to !x o%l!gat!o#" a" %et*ee# a&t!e"$ %ut the &e"e&vat!o# o

e""e#t!al att&!%ute" o "ove&e!g# o*e& !" al"o &ead !#to 'o#t&a't" a" a %a"!' o"tulate

o the legal o&de&. The ol!'/ o &ote't!#g 'o#t&a't" aga!#"t !a!&e#t &e"uo"e"

the a!#te#a#'e o a govee#t *h!'h &eta!#" ade,uate autho&!t/ to "e'u&e the

ea'e a#d good o&de& o "o'!et/. +# t&uth$ the Co#t&a't Clau"e ha" #eve& %ee# thought

a" a l!!tat!o# o# the exe&'!"e o the State8" o*e& o taxat!o# "ave o#l/ *he&e a taxexet!o# ha" %ee# g&a#ted o& a val!d 'o#"!de&at!o#.

Su'h !" #ot the 'a"e o A: !# G.R. No. 115;52$ a#d the Cou&t doe" #ot u#de&"ta#d !t

to ae th!" 'la!. Rathe&$ !t" o"!t!o#$ a" d!"'u""ed a%ove$ !" that the &eoval o !t"

tax exet!o# 'a##ot %e ade %/ a ge#e&al$ %ut o#l/ %/ a "e'!!'$ la*.


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7u&the&$ the Su&ee Cou&t held the val!d!t/ o Reu%l!' A't No. 16 !# !t" o&al a#d

"u%"ta#t!ve a"e't" a" th!" ha" %ee# &a!"ed !# the va&!ou" 'a"e" %eo&e !t. To "u u$

the Cou&t hold"u"t!/ the g&a#t o

&o"e't!ve &el!e %/ *&!t o &oh!%!t!o#.

Claims of Regressivity, Denial of Due Process, Equal Protection, and Impairmentof Contracts

Thu"$ the %&oad a&gue#t aga!#"t the AT !" that !t !" &eg&e""!ve a#d that !t v!olate" the&e,u!&ee#t that ?The &ule o taxat!o# "hall %e u#!o& a#d e,u!ta%le @a#d Co#g&e""

"hall evolve a &og&e""!ve "/"te o taxat!o#.?42

et!t!o#e&" !# G.R. No. 115;1 ,uote&o a ae&$ e#t!tled ?AT ol!'/ +""ue"< St&u'tu&e$ Reg&e""!v!t/$ +#lat!o# a#d xo&t"?%/ Ala# A. Ta!t o the +#teat!o#al Bo#eta&/ 7u#d$ that ?AT a/e#t %/ lo*-!#'oehou"ehold" *!ll %e a h!ghe& &oo&t!o# o the!& !#'oe" (a#d exe#d!tu&e") tha#a/e#t" %/ h!ghe&-!#'oe hou"ehold". That !"$ the AT *!ll %e &eg&e""!ve.?et!t!o#e&" 'o#te#d that a" a &e"ult o the u#!o& 10 AT$ the tax o# 'o#"ut!o#good" o tho"e *ho a&e !# the h!ghe&-!#'oe %&a'et$ *h!'h %eo&e *e&e taxed at a&ate h!ghe& tha# 10$ ha" %ee# &edu'ed$ *h!le %a"!' 'ood!t!e"$ *h!'h %eo&e *e&etaxed at &ate" &a#g!#g &o 3 to 5$ a&e #o* taxed at a h!ghe& &ate.

u"t a" v!go&ou"l/ a" !t !" a""e&ted that the la* !" &eg&e""!ve$ the oo"!te 'la! !"&e""ed %/ &e"o#de#t" that !# a't !t d!"t&!%ute" the tax %u&de# to a" a#/ good" a#d"e&v!'e" a" o""!%le a&t!'ula&l/ to tho"e *h!'h a&e *!th!# the &ea'h o h!ghe&-!#'oeg&ou"$ eve# a" the la* exet" %a"!' good" a#d "e&v!'e". +t !" thu" e,u!ta%le. Thegood" a#d &oe&t!e" "u%>e't to the AT a&e tho"e u"ed o& 'o#"ued %/ h!ghe&-!#'oe g&ou". The"e !#'lude &eal &oe&t!e" held &!a&!l/ o& "ale to 'u"toe&" o&held o& lea"e !# the o&d!#a&/ 'ou&"e o %u"!#e""$ the &!ght o& &!v!lege to u"e !#du"t&!al$'oe&'!al o& "'!e#t!!' e,u!e#t$ hotel"$ &e"tau&a#t" a#d "!!la& la'e"$ tou&!"t%u"e"$ a#d the l!e. D# the othe& ha#d$ "all %u"!#e"" e"ta%l!"he#t"$ *!th a##ual


3/16

g&o"" "ale" o le"" tha# 500$000$ a&e exeted. Th!"$ a''o&d!#g to &e"o#de#t"$&eove" &o the 'ove&age o the la* "oe 30$000 %u"!#e"" e"ta%l!"he#t". D# theothe& ha#d$ a# o''a"!o#al ae& 43o the Ce#te& o& Re"ea&'h a#d Cou#!'at!o#'!t!e" a NEA "tud/ that the AT ha" !#!al !a't o# !#lat!o# a#d !#'oed!"t&!%ut!o# a#d that *h!le add!t!o#al exe#d!tu&e o& the lo*e"t !#'oe 'la"" !" o#l/301 o& 1.49 a /ea&$ that o& a a!l/ ea!#g 500$000 a /ea& o& o&e !" ;$340 o&2.2.

:a'!#g e!&!'al data o# *h!'h to %a"e a#/ 'o#'lu"!o# &ega&d!#g the"e a&gue#t"$a#/ d!"'u""!o# *hethe& the AT !" &eg&e""!ve !# the "e#"e that !t *!ll h!t the ?oo&? a#d!ddle-!#'oe g&ou !# "o'!et/ ha&de& tha# !t *!ll the ?&!'h$? a" the Cooe&at!ve F#!o#o the h!l!!#e" (CF) 'la!" !# G.R. No. 115;3$ !" la&gel/ a# a'ade!' exe&'!"e.D# the othe& ha#d$ the CF8" 'o#te#t!o# that Co#g&e""8 *!thd&a*al o exet!o# o&odu'e&" 'ooe&at!ve"$ a&et!#g 'ooe&at!ve"$ a#d "e&v!'e 'ooe&at!ve"$ *h!lea!#ta!#!#g that g&a#ted to ele't&!' 'ooe&at!ve"$ #ot o#l/ goe" aga!#"t the'o#"t!tut!o#al ol!'/ to &oote 'ooe&at!ve" a" !#"t&ue#t" o "o'!al >u"t!'e (A&t. ++$ H

15) %ut al"o de#!e" "u'h 'ooe&at!ve" the e,ual &ote't!o# o the la* !" a'tuall/ aol!'/ a&gue#t. The leg!"latu&e !" #ot &e,u!&ed to adhe&e to a ol!'/ o ?all o& #o#e? !#'hoo"!#g the "u%>e't o taxat!o#.44

No& !" the 'o#te#t!o# o the Cha%e& o Real "tate a#d u!lde&" A""o'!at!o#(CRA)$ et!t!o#e& !# G.R. 11554$ that the AT *!ll &edu'e the a& u o !t"e%e&" %/ a" u'h a" ;5 to 90 a#/ o&e 'o#'&ete. +t !" a e&e allegat!o#. D#the othe& ha#d$ the 'la! o the h!l!!#e &e"" +#"t!tute$ et!t!o#e& !# G.R. No.115544$ that the AT *!ll d&!ve "oe o !t" e%e&" out o '!&'ulat!o# %e'au"e the!&&o!t" &o adve&t!"ee#t" *!ll #ot %e e#ough to a/ o& the!& tax l!a%!l!t/$ *h!le

u&o&t!#g to %e %a"ed o# the !#a#'!al "tatee#t" o the #e*"ae&" !# ,ue"t!o#$ "t!llall" "ho&t o the e"ta%l!"he#t o a't" %/ ev!de#'e "o #e'e""a&/ o& ad>ud!'at!#g the,ue"t!o# *hethe& the tax !" o&e""!ve a#d 'o#!"'ato&/.

+#deed$ &eg&e""!v!t/ !" #ot a #egat!ve "ta#da&d o& 'ou&t" to e#o&'e. hat Co#g&e"" !"&e,u!&ed %/ the Co#"t!tut!o# to do !" to ?evolve a &og&e""!ve "/"te o taxat!o#.? Th!"!" a d!&e't!ve to Co#g&e""$ >u"t l!e the d!&e't!ve to !t to g!ve &!o&!t/ to the e#a'te#t ola*" o& the e#ha#'ee#t o hua# d!g#!t/ a#d the &edu't!o# o "o'!al$ e'o#o!' a#dol!t!'al !#e,ual!t!e" (A&t. +++$ H 1)$ o& o& the &oot!o# o the &!ght to ?,ual!t/edu'at!o#? (A&t. +$ H 1). The"e &ov!"!o#" a&e ut !# the Co#"t!tut!o# a" o&al!#'e#t!ve" to leg!"lat!o#$ #ot a" >ud!'!all/ e#o&'ea%le &!ght".

At all eve#t"$ ou& 19;; de'!"!o# !# Kapatiran 45"hould have la!d to &e"t the ,ue"t!o#"#o* &a!"ed aga!#"t the AT. The&e "!!la& a&gue#t" ade aga!#"t the o&!g!#al AT:a* (xe'ut!ve D&de& No. 23) *e&e held to %e h/othet!'al$ *!th #o o&e %a"!" tha##e*"ae& a&t!'le" *h!'h th!" Cou&t ou#d to %e ?hea&"a/ a#d @*!thout ev!de#t!a&/value.? A" Reu%l!' A't No. 16 e&el/ exa#d" the %a"e o the AT "/"te a#d !t"'ove&age a" &ov!ded !# the o&!g!#al AT :a*$ u&the& de%ate o# the de"!&a%!l!t/ a#d*!"do o the la* "hould have "h!ted to Co#g&e"".


4/16

D#l/ "l!ghtl/ le"" a%"t&a't %ut #o#ethele"" h/othet!'al !" the 'o#te#t!o# o CRA thatthe !o"!t!o# o the AT o# the "ale" a#d lea"e" o &eal e"tate %/ v!&tue o 'o#t&a't"e#te&ed !#to &!o& to the ee't!v!t/ o the la* *ould v!olate the 'o#"t!tut!o#al &ov!"!o#that ?No la* !a!&!#g the o%l!gat!o# o 'o#t&a't" "hall %e a""ed.? +t !" e#ough to "a/that the a&t!e" to a 'o#t&a't 'a##ot$ th&ough the exe&'!"e o &ohet!' d!"'ee#t$ette& the exe&'!"e o the tax!#g o*e& o the State. 7o& #ot o#l/ a&e ex!"t!#g la*" &ead!#to 'o#t&a't" !# o&de& to !x o%l!gat!o#" a" %et*ee# a&t!e"$ %ut the &e"e&vat!o# o

e""e#t!al att&!%ute" o "ove&e!g# o*e& !" al"o &ead !#to 'o#t&a't" a" a %a"!' o"tulateo the legal o&de&. The ol!'/ o &ote't!#g 'o#t&a't" aga!#"t !a!&e#t &e"uo"e"the a!#te#a#'e o a govee#t *h!'h &eta!#" ade,uate autho&!t/ to "e'u&e theea'e a#d good o&de& o "o'!et/. 46

+# t&uth$ the Co#t&a't Clau"e ha" #eve& %ee# thought a" a l!!tat!o# o# the exe&'!"e othe State8" o*e& o taxat!o# "ave o#l/ *he&e a tax exet!o# ha" %ee# g&a#ted o& aval!d 'o#"!de&at!o#. 47Su'h !" #ot the 'a"e o A: !# G.R. No. 115;52$ a#d *e do #otu#de&"ta#d !t to ae th!" 'la!. Rathe&$ !t" o"!t!o#$ a" d!"'u""ed a%ove$ !" that the

&eoval o !t" tax exet!o# 'a##ot %e ade %/ a ge#e&al$ %ut o#l/ %/ a "e'!!'$ la*.

BAGONG FILIPINAS OVERSEAS CORPORATION and GOLEN STAR SHIPPING!LT.! et!t!o#e&"$ v". NATIONAL LABOR RELATIONS COMMISSION! PHILIPPINEOVERSEAS EMPLOYMENT AMINISTRATION! IRECTOR PATRICIA SANTOTOMAS and PROSERFINA PANCHO &e"o#de#t".

(Elizer A !dulios for petitioners" (Pedro # #insangan for respondent P Panc$o"

A"UINO! J.:

The !""ue !# th!" 'a"e !" *hethe& the "h!%oa&d elo/e#t 'o#t&a't o& Io#go#g la*"hould gove the aou#t o death 'oe#"at!o# due to the *!e o Gu!lle&o a#'ho*ho *a" elo/ed %/ Golde# Sta& Sh!!#g$ :td.$ a Io#go#g %a"ed !&.

The "h!%oa&d elo/e#t 'o#t&a't dated u#e 1$ 19; *a" exe'uted !# th!" 'ou#t&/%et*ee# a#'ho a#d ago#g 7!l!!#a" Dve&"ea" Co&o&at!o#$ the lo'al age#t oGolde# Sta& Sh!!#g. +t *a" a&oved %/ the deu#'t Nat!o#al Seae# oa&d. a#'ho*a" h!&ed a" a# o!le& !# the %&' !livineo& 12 o#th" *!th a g&o"" o#thl/ *age o FSJ195.

+# D'to%e&$ 19;$ he had a 'e&e%&al "t&oe. Ie *a" &u"hed to the ho"!tal *h!le theve""el *a" do'ed at Gothe#%e&g$ S*ede#. Ie *a" &eat&!ated to the h!l!!#e" a#d'o#!#ed at the Sa# ua# de E!o" Io"!tal. Ie d!ed o# Ee'e%e& 13$ 199.

The Nat!o#al Seae# oa&d a*a&ded h!" *!do*$ &o"e&!#a$ 20$000 a" d!"a%!l!t/'oe#"at!o# %e#e!t" u&"ua#t to the a%ove-e#t!o#ed elo/e#t 'o#t&a't lu"2$000 a" attoe/8" ee". &o"e&!#a aealed to the Nat!o#al :a%o& Relat!o#"Co!""!o# *h!'h a*a&ded he& J621 t!e" 36 o#th" o& !t" e,u!vale#t !# h!l!!#e


5/16

'u&&e#'/ lu" 10 o the %e#e!t" a" attoe/8" ee". Golde# Sta& Sh!!#g a""a!ledthat de'!"!o# %/ certiorari.

e hold that the "h!%oa&d elo/e#t 'o#t&a't !" 'o#t&oll!#g !# th!" 'a"e. The'o#t&a't &ov!de" that the %e#e!'!a&!e" o the "eaa# a&e e#t!tled to 20$000 ?ove&a#d a%ove the %e#e!t"? o& *h!'h the h!l!!#e Govee#t !" l!a%le u#de& h!l!!#ela*.

Io#go#g la* o# *o&e#8" 'oe#"at!o# !" #ot the al!'a%le la*. The 'a"eo orse %anagement Co vs ational )eamen *oard$ G. R. No. 54204$ Sete%e&30$ 19;2$ 11 SCRA 4;6 'a##ot %e a gu!de %e'au"e !t *a" ex&e""l/ "t!ulated !# theelo/e#t 'o#t&a't !# that 'a"e that the *o&e#8" 'oe#"at!o# a/a%le to theelo/ee "hould %e !# a''o&da#'e *!th h!l!!#e :a* o& the o&e#8" +#"u&a#'e:a* o the 'ou#t&/ *he&e the ve""el !" &eg!"te&ed ?*h!'heve& !" g&eate&?.

The Sol!'!to& Ge#e&al o!#e" that the elo/e#t 'o#t&a't "hould %e al!ed. 7o& that&ea"o#$ he &eu"ed to uhold the de'!"!o# o the N:RC.

IR7DR$ the >udge#t o the Nat!o#al :a%o& Relat!o#" Co!""!o# !" &eve&"eda#d "et a"!de. The de'!"!o# o the Nat!o#al Seae# oa&d dated 7e%&ua&/ 26$ 19;1 !"a!&ed. No 'o"t". SD DRERE.

T#$%&' E$()* In*'(#a*'d S'#+$,'-! In,. +-. NLRC

G.R. N. /20514! ',''# 3! /001

:ADR :A< E!"ea"e a" G&ou#d o& E!"!""al$ &e,u!"!te"< (1) the d!"ea"e u"t %e

"u'h that elo/eeK" 'o#t!#ued elo/e#t !" &oh!%!ted %/ la* o& &e>ud!'!al to h!"

health a" *ell a" to the health o h!" 'o-elo/ee"= a#d (2) the&e u"t %e a

'e&t!!'at!o# %/ 'oete#t u%l!' autho&!t/ that the d!"ea"e !" o "u'h #atu&e o& at "u'h

a "tage that !t 'a##ot %e 'u&ed *!th!# a e&!od o 6 o#th" *!th &oe& ed!'al

t&eate#t.

:ADR :A< "ae= The &e,u!&ee#t o& a ed!'al 'e&t!!'ate u#de& A&t!'le 2;4 o the

:a%o& Code 'a##ot %e d!"e#"ed *!th= othe&*!"e$ !t *ould "a#'t!o# the u#!late&al a#d

a&%!t&a&/ dete&!#at!o# %/ the elo/e& o the g&av!t/ o& exte#t o the elo/eeK"

!ll#e"" a#d thu" deeat the u%l!' ol!'/ o# the &ote't!o# o la%o&.

R+AT +NTRNAT+DNA: :A< :ex :o'! Co#t&a'tu"< "ta%l!"hed !" the &ule that lex

lo'! 'o#t&a'tu" (the la* o the la'e *he&e the 'o#t&a't !" ade) gove" !# th!"

>u&!"d!'t!o#. The&e !" #o ,ue"t!o# that the 'o#t&a't o elo/e#t !# th!" 'a"e *a"

e&e'ted he&e !# the h!l!!#e".


6/16

R+AT +NTRNAT+DNA: :A< :a* o the 7o&u v!"-a-v!" u%l!' ol!'/< Settled !"

the &ule that the 'ou&t" o the o&u *!ll #ot e#o&'e a#/ o&e!g# 'la! o%#ox!ou" to the

o&uK" u%l!' ol!'/. Ie&e !# the h!l!!#e"$ elo/e#t ag&eee#t" a&e o&e tha#

'o#t&a'tual !# #atu&e. The Co#"t!tut!o# !t"el$ !# A&t!'le +++ Se't!o# 3$ gua&a#tee" the

"e'!al &ote't!o# o *o&e&".

FACTS: D"da#a$ a 7!l!!#o '!t!Le#$ *a" &e'&u!ted %/ T&!le !ght o& elo/e#t*!th the latte&K" &!#'!al$ Gul Cate&!#g Coa#/ (GCC)$ a !& %a"ed !# the M!#gdo

o Saud! A&a%!a. The elo/e#t 'o#t&a't (o&!g!#all/ a" ood "e&ve& %ut late& 'ha#ged

to *a!t&e"") *a" exe'uted !# the h!l!!#e" %ut *a" to %e e&o&ed !# R!/adh. D#'e

!# R!/adh$ ho*eve&$ D"da#a *a" ade to e&o& "t&e#uou" ta"" (*a"h!#g d!"he"$

>a#!to&!al *o&)$ *h!'h *e&e #ot !#'luded !# he& de"!g#at!o# a" a *a!t&e"". e'au"e o

the lo#g hou&" a#d "t&e#uou" #atu&e o he& *o&$ "he "ue&ed &o Ca&al Tu##el

S/#d&oe$ o& *h!'h "he had to u#de&go "u&ge&/. ut du&!#g he& *ee" o 'o#!#ee#t

at the ho"!tal o& he& &e'ove&/$ "he *a" #ot g!ve# a#/ "ala&/. A#d ate& "he *a"

d!"'ha&ged &o the ho"!tal$ GCC "udde#l/ d!"!""ed he& &o *o&$ allegedl/ o# the

g&ou#d o !ll#e"". She *a" #ot g!ve# a#/ "ea&at!o# a/ #o& *a" "he a!d he& "ala&!e"

o& the e&!od" *he# "he *a" #ot allo*ed to *o&. Thu"$ uo# he& &etu to the

h!l!!#e"$ "he !led a 'ola!#t aga!#"t T&!le !ght$ &a/!#g o& u#a!d a#d u#de&a!d

"ala&!e"$ ao#g othe&".

The :A &uled !# he& avou&$ *h!'h &ul!#g N:RC a!&ed. Ie#'e$ th!" et!t!o# o&

'e&t!o&a&!.

+SSF< hethe& o& #ot D"da#a *a" !llegall/ d!"!""ed

+ "o$ *hethe& o& #ot "he !" e#t!tled to a*a&d o& "ala&!e" o& the u#ex!&ed o&t!o# o the

'o#t&a't

I:E< The et!t!o# u"t a!l.

E!"ea"e a" a G&ou#d o& E!"!""al

F#de& A&t!'le 2;4 o the :a%o& Code a#d the D#!%u" Rule" +lee#t!#g the :a%o&

Code$ o& d!"ea"e to %e a val!d g&ou#d o& te&!#at!o#$ the ollo*!#g &e,u!"!te" u"t %e&e"e#tud!'!al to he& health$ a" *ell a" that o he& 'o-

elo/ee". +# a't$ the ed!'al &eo&t !""ued ate& he& "e'o#d oe&at!o# "tated that

"he had ve&/ good !&ovee#t o the "/to". e"!de"$ Ca&al Tu##el

S/#d&oe !" #ot a 'o#tag!ou" d!"ea"e.

D# the ed!'al 'e&t!!'ate &e,u!&ee#t$ et!t!o#e& e&&o#eou"l/ a&gue" that &!vate&e"o#de#t *a" elo/ed !# Saud! A&a%!a a#d #ot he&e !# the h!l!!#e". Ie#'e$

the&e *a" a h/"!'al !o""!%!l!t/ to "e'u&e &o a h!l!!#e u%l!' health autho&!t/ the

alluded ed!'al 'e&t!!'ate that u%l!' &e"o#de#tK" !ll#e"" *!ll #ot %e 'u&ed *!th!# a

e&!od o "!x o#th".

et!t!o#e& e#t!&el/ !""e" the o!#t$ a" 'ou#"el o& &!vate &e"o#de#t "tate" !# the

Coe#t. The &ule "!l/ &e"'&!%e" a 'e&t!!'at!o# %/ a 'oete#t u%l!' health

autho&!t/ a#d #ot a h!l!!#e u%l!' health autho&!t/.

+$ !#deed$ D"da#a *a" h/"!'all/ u#!t to 'o#t!#ue he& elo/e#t$ he& elo/e&

'ould have ea"!l/ o%ta!#ed a 'e&t!!'at!o# to that ee't &o a 'oete#t u%l!' health

autho&!t/ !# Saud! A&a%!a$ the&e%/ head!#g o a#/ 'ola!#t o& !llegal d!"!""al.

The &e,u!&ee#t o& a ed!'al 'e&t!!'ate u#de& A&t!'le 2;4 o the :a%o& Code 'a##ot

%e d!"e#"ed *!th= othe&*!"e$ !t *ould "a#'t!o# the u#!late&al a#d a&%!t&a&/

dete&!#at!o# %/ the elo/e& o the g&av!t/ o& exte#t o the elo/eeK" !ll#e"" a#d

thu" deeat the u%l!' ol!'/ o# the &ote't!o# o la%o&. A" the Cou&t o%"e&ved !# &!eto

v. N:RC$ +$e Court is not unaare of t$e many a-uses suffered -y our overseasor.ers in t$e foreign land $ere t$ey $ave ventured, usually it$ $eavy $earts, in

pursuit of a more fulfilling future *reac$ of contract, maltreatment, rape, insufficient

nouris$ment, su-/$uman lodgings, insults and ot$er forms of de-asement, are only a

fe of t$e in$umane acts to $ic$ t$ey are su-0ected -y t$eir foreign employers, $o

pro-a-ly feel t$ey can do as t$ey please in t$eir country 1$ile t$ese or.ers may

indeed $ave relatively little defense against e2ploitation $ile t$ey are a-road, t$at

disadvantage must not continue to -urden t$em $en t$ey return to t$eir on territory

to voice t$eir muted complaint +$ere is no reason $y, in t$eir on land, t$e

protection of our on las cannot -e e2tended to t$em in full measure for t$e redress

of t$eir grievances3

h!'h la* "hould al/< :ex :o'! Co#t&a'tu"

et!t!o#e& l!e*!"e attet" to "!de"te the ed!'al 'e&t!!'ate &e,u!&ee#t %/

'o#te#d!#g that "!#'e D"da#a *a" *o&!#g !# Saud! A&a%!a$ he& elo/e#t *a"

"u%>e't to the la*" o the ho"t 'ou#t&/. Aa&e#tl/$ et!t!o#e& hoe" to ae !t aea&


8/16

that the la%o& la*" o Saud! A&a%!a do #ot &e,u!&e a#/ 'e&t!!'at!o# %/ a 'oete#t

u%l!' health autho&!t/ !# the d!"!""al o elo/ee" due to !ll#e"".

Aga!#$ et!t!o#e&K" a&gue#t !" *!thout e&!t.

7!&"t$ e"ta%l!"hed !" the &ule that lex lo'! 'o#t&a'tu" (the la* o the la'e *he&e the

'o#t&a't !" ade) gove" !# th!" >u&!"d!'t!o#. The&e !" #o ,ue"t!o# that the 'o#t&a't o

elo/e#t !# th!" 'a"e *a" e&e'ted he&e !# the h!l!!#e". The&eo&e$ the :a%o&Code$ !t" !lee#t!#g &ule" a#d &egulat!o#"$ a#d othe& la*" ae't!#g la%o& al/ !#

th!" 'a"e. 7u&the&o&e$ "ettled !" the &ule that the 'ou&t" o the o&u *!ll #ot e#o&'e

a#/ o&e!g# 'la! o%#ox!ou" to the o&uK" u%l!' ol!'/. Ie&e !# the h!l!!#e"$

elo/e#t ag&eee#t" a&e o&e tha# 'o#t&a'tual !# #atu&e. The Co#"t!tut!o# !t"el$

!# A&t!'le +++ Se't!o# 3$ gua&a#tee" the "e'!al &ote't!o# o *o&e&".

Th!" u%l!' ol!'/ "hould %e %oe !# !#d !# th!" 'a"e %e'au"e to allo* o&e!g#

elo/e&" to dete&!#e o& a#d %/ the"elve" *hethe& a# ove&"ea" 'o#t&a't *o&e&

a/ %e d!"!""ed o# the g&ou#d o !ll#e"" *ould e#'ou&age !llegal o& a&%!t&a&/ &e-

te&!#at!o# o elo/e#t 'o#t&a't".

A*a&d o Sala&!e" g&a#ted %ut &edu'ed. Bo&al Eaage" g&a#ted %ut &edu'ed

PAISTAN INTERNATIONAL AIRLINES CORP. PIA! %'*$*$n'#! +-. Hn. BLAS F.OPLE! M$n$-*'# La#8 Hn. V$,'n*' L'(a#d! 9#.! '%*; M$n$-*'#8 E*)'&;nn'

B. Fa##a&'- < Ma#$a Mn;''n Maa-$(! #'-%nd'n*- =/00>?

Ee'. 2$ 19;< +A$ a o&e!g# 'o&. l!'e#"ed to do %u"!#e"" !# the h!l!!#e"$exe'uted !# Ba#!la 2 "ea&ate 'o#t&a't" o elo/e#t" *!th 7a&&ale" Baa"!g.Te&" o the 'o#t&a'tu&!"d!'t!o# to 'o#"!de& a#/ atte& a&!"!#g out o o& u#de& ag&eee#t.

7a&&ale" Baa"!g (elo/ee") *e&e h!&ed a" l!ght atte#da#t" ate&u#de&go!#g t&a!#!#g. a"e "tat!o# *a" !# Ba#!la.

Aug. 2$ 19;0< &oughl/ 1 /& 4o" &!o& to the ex!&at!o# o the 'o#t&a't"$+A "e#t "ea&ate lette&" to the 2 elo/ee" !#o&!#g the that the/ *!ll %ete&!#ated ee't!ve Set. 1$ 19;0.


9/16

lo/ee"< !led a 'ola!#t o& !llegal d!"!""al #o#-a/e#t o'oa#/ %e#e!t" %o#u"e" *!th the B!#!"t&/ o :a%o& lo/e#t (BD:).

+A "u%!tted a o"!t!o# ae& 'la!!#g the elo/ee" *e&e ha%!tuala%"e#tee" the/ had the ha%!t o %&!#g!#g !# &o a%&oad la&ge ,ua#t!t!e" oe&"o#al ee't" a#d the 'oa#/ ha" %ee# *aed %/ 'u"to o!'!al" to adv!"eelo/ee" to d!"'o#t!#ue that &a't!'e. +A l!e*!"e !#voed the 'o#t&a't o

elo/e#t. BD: RegKl d!&e'to& "t&ella ade the ollo*!#g !#d!#g"u"t 'au"e Reg!o#al E!&e'to& u"t o&de& the !ed!ate &e!#"tatee#t a/e#t o


10/16

%a'*age". o"!t!o# ae& *a" #ot eve# #e'e""a&/. +tK" a &e"ut!o# *P' 'a#Kt %eove&tued %/ a#/ 'o#t&a&/ &oo ho*eve& "t&o#g.

3. @ON *)' %#+$-$n- *)' ,n*#a,* -%'#-'d'd *)' ('n'#a& %#+$-$n- *)' La# Cd'. NO.

The &!#'!le o &eedo to 'o#t&a't !" #ot a%"olute. CC A&t. 1306 &ov!de" that

"t!ulat!o#" %/ the a&t!e" a/ %e allo*ed &ov!ded the/ a&e #ot 'o#t&a&/ to la*$o&al"$ good 'u"to"$ u%l!' o&de& ol!'/. Thu"$ the &!#'!le o auto#o/ o'o#t&a't!#g a&t!e" u"t %e 'ou#te&%ala#'ed *Pthe ge#e&al &ule that &ov!"!o#" oal!'a%le la* a&e deeed *&!tte# !#to the 'o#t&a't.

+# th!" 'a"e$ the la* &elat!#g to la%o& elo/e#t !" a# a&ea *P' the a&t!e" a&e#ot at l!%e&t/ to !#"ulate the"elve" the!& &elat!o#"h! &o %/ "!l/ 'o#t&a't!#g*Pea'h othe&.

4. @ON *'# 5 $n *)' '%&;'n* ,n*#a,* Da- ,n*#a#; * A#*-. 21>21/ *)' La# Cd'. YES.

BD: held that te& #o. 5 *a" 'o#t&a&/ to A&t. 2;0 (&egula& elo/ee" 'a##ot %ete&!#ated %/ the elo/e& ex'et o& a >u"t 'au"e o& *he# autho&!Led %/ the 'ode) 2;1 (a#/ elo/ee *ho ha" &e#de&ed at lea"t 1 /& o "e&v!'e$ *hethe& 'o#t!#uou"o& %&oe#$ "hall %e 'o#"!de&ed a" a &egula& elo/ee) o the :a%o& Code.

&e#t S'hool v". Qao&a &ov!de" that a 'o#t&a't &ov!d!#g o& elo/e#t *Pa!xed e&!od *a" #ot #e'e""a&!l/ u#la*ul. The '&!t!'al 'o#"!de&at!o# !" the&e"e#'ePa%"e#'e o a "u%"ta#t!al !#d!'at!o# that the e&!od "e'!!ed !# a#elo/e#t ag&eee#t *a" de"!g#ed to '!&'uve#t the "e'u&!t/ o te#u&e o &egula&elo/ee".

+# th!" 'a"e$ te& O5 "hould %e &ead alo#g"!de te& O6$ *P' #eut&al!Le" the o&e&te&. +# ee't$ the 3-/& e&!od %e'oe" a'ultat!ve at the ot!o# o +A. Net ee't*ould %e to &e#de& the elo/e#t o Baa"!g 7a&&ale" at the lea"u&e o +A.Thu"$ te&" 5 6 *e&e !#te#ded to &eve#t "e'u&!t/ o te#u&e &o a''&u!#g !# avo&o the elo/ee" eve# du&!#g the l!!ted e&!od o 3/&" a#d !# ee't e"'ae'oletel/ the th&u"t o the :a%o& Code &ov!"!o#".

5. @ON n&; Pa$-*an- &aD- < ,#*- -)&d (+'#n. NO. P)$&$%%$n' C#*-< ad$n$-*#a*$+' a('n,$'- a#' *)' %#%'# #- # *)' #'-&*$n *)',n*#a,*a& d$-%*'.

The &elat!o#"h! %et*ee# +A !t" elo/ee" !# th!" 'a"e !" ve&/ u'h ae'ted*Pu%l!' !#te&e"t that the al!'a%le R la*" 'a#Kt %e &e#de&ed !llu"o&/ %/ the a&t!e"ag&ee!#g that "oe othe& la* "hould gove the!& &elat!o#"h!.

Co#t&a't *a" exe'uted a#d e&o&ed (a&t!all/) !# R.

lo/ee" a&e h!l!!#e '!t!Le#" &e"!de#t" a#d *e&e %a"ed !# the h!l!!#e".

+A$ although a o&e!g# 'o&.$ !" l!'e#"ed to do %u"!#e"" !# the R.


11/16

+A d!d #ot lead &ove the al!'a%le a!"ta#! la*" o# the atte&. Thu"$ !tK"&e"ued that the"e la*" a&e the "ae a" the R la*".

H&d$n(: P'*$*$n d$-$--'d # &a, '#$*. MOLE #d'# a$#'d < d$$'d.

1. lo/ee" *e&e !llegall/ d!"!""ed.

2. lo/ee" a&e e#t!tled to 3 /&". %a'*age" *Po ,ual!!'at!o# o& dedu't!o#.3. et!t!o#e&" "hould %e &e!#"tated. Should &e!#"tatee#t #ot %e ea"!%le !# v!e* o

the le#gth o t!e *P' ha" go#e %/$ +A "hould a/ "ea&at!o# a/" to elo/ee"aou#t!#g to 1 o#thK" "ala&/ o& eve& /ea& o "e&v!'e &e#de&ed %/ the !#'lud!#gthe 3 /&" "e&v!'e utat!vel/ &e#de&ed.

@ILLS AN SUCCESSION

Ta;a( +-. B'n('* Cn-&$da*'d! In,.

G.R. N. L23/45! N+. 20! /061

R+AT +NTRNAT+DNA: :A< S!tu" o Sha&e" o Sto'< do!'!le o the 'o&o&at!o#

SFCCSS+DN< A#'!lla&/ Ad!#!"t&at!o#< The a#'!lla&/ ad!#!"t&at!o# !" &oe&$

*he#eve& a e&"o# d!e"$ leav!#g !# a 'ou#t&/ othe& tha# that o h!" la"t do!'!le$

&oe&t/ to %e ad!#!"te&ed !# the #atu&e o a""et" o the de'ea"ed l!a%le o& h!"!#d!v!dual de%t" o& to %e d!"t&!%uted ao#g h!" he!&".

SFCCSS+DN< &o%ate< &o%ate 'ou&t ha" autho&!t/ to !""ue the o&de& e#o&'!#g the

a#'!lla&/ ad!#!"t&ato&K" &!ght to the "to' 'e&t!!'ate" *he# the a'tual "!tu" o the

"ha&e" o "to'" !" !# the h!l!!#e".

FACTS:+do#ah Slade e&!#"$ a# Ae&!'a# '!t!Le# *ho d!ed !# Ne* o& C!t/$ let

ao#g othe&"$ t*o "to' 'e&t!!'ate" !""ued %/ e#guet Co#"ol!dated$ a 'o&o&at!o#

do!'!led !# the h!l!!#e". A" a#'!lla&/ ad!#!"t&ato& o e&!#"K e"tate !# theh!l!!#e"$ Ta/ag #o* *a#t" to tae o""e""!o# o the"e "to' 'e&t!!'ate" %ut Cou#t/

T&u"t Coa#/ o Ne* o&$ the do!'!l!a&/ ad!#!"t&ato&$ &eu"ed to a&t *!th the.

Thu"$ the &o%ate 'ou&t o the h!l!!#e" *a" o&'ed to !""ue a# o&de& de'la&!#g the

"to' 'e&t!!'ate" a" lo"t a#d o&de&!#g e#guet Co#"ol!dated to !""ue #e* "to'

'e&t!!'ate" &e&e"e#t!#g e&!#"K "ha&e". e#guet Co#"ol!dated aealed the o&de&$

a&gu!#g that the "to' 'e&t!!'ate" a&e #ot lo"t a" the/ a&e !# ex!"te#'e a#d 'u&&e#tl/ !#

the o""e""!o# o Cou#t/ T&u"t Coa#/ o Ne* o&.


12/16

ISSUE:hethe& o& #ot the o&de& o the lo*e& 'ou&t !" &oe&

HEL: The aeal la'" e&!t.

Ta/ag$ a" a#'!lla&/ ad!#!"t&ato&$ ha" the o*e& to ga!# 'o#t&ol a#d o""e""!o# o all

a""et" o the de'ede#t *!th!# the >u&!"d!'t!o# o the h!l!!#e"

+t !" to %e #oted that the "'oe o the o*e& o the a#'!lla&/ ad!#!"t&ato& *a"$ !# a#ea&l!e& 'a"e$ "et o&th %/ u"t!'e Bal'ol. Thu"< ?+t !" ote# #e'e""a&/ to have o&e

tha# o#e ad!#!"t&at!o# o a# e"tate. he# a e&"o# d!e" !#te"tate o*#!#g &oe&t/ !#

the 'ou#t&/ o h!" do!'!le a" *ell a" !# a o&e!g# 'ou#t&/$ ad!#!"t&at!o# !" had !# %oth

'ou#t&!e". That *h!'h !" g&a#ted !# the >u&!"d!'t!o# o de'ede#t8" la"t do!'!le !" te&ed

the &!#'!al ad!#!"t&at!o#$ *h!le a#/ othe& ad!#!"t&at!o# !" te&ed the a#'!lla&/

ad!#!"t&at!o#. The &ea"o# o& the latte& !" %e'au"e a g&a#t o ad!#!"t&at!o# doe" #ot

ex &o&!o v!go&e have a#/ ee't %e/o#d the l!!t" o the 'ou#t&/ !# *h!'h !t !" g&a#ted.

Ie#'e$ a# ad!#!"t&ato& ao!#ted !# a o&e!g# "tate ha" #o autho&!t/ !# the

@h!l!!#e". The a#'!lla&/ ad!#!"t&at!o# !" &oe&$ *he#eve& a e&"o# d!e"$ leav!#g !#

a 'ou#t&/ othe& tha# that o h!" la"t do!'!le$ &oe&t/ to %e ad!#!"te&ed !# the #atu&e

o a""et" o the de'ea"ed l!a%le o& h!" !#d!v!dual de%t" o& to %e d!"t&!%uted ao#g h!"

he!&".?

&o%ate 'ou&t ha" autho&!t/ to !""ue the o&de& e#o&'!#g the a#'!lla&/ ad!#!"t&ato&K"

&!ght to the "to' 'e&t!!'ate" *he# the a'tual "!tu" o the "ha&e" o "to'" !" !# the

h!l!!#e".

+t *ould ollo* the# that the autho&!t/ o the &o%ate 'ou&t to &e,u!&e that a#'!lla&/

ad!#!"t&ato&8" &!ght to ?the "to' 'e&t!!'ate" 'ove&!#g the 33$002 "ha&e" ... "ta#d!#g !#

he& #ae !# the %oo" o @aella#t e#guet Co#"ol!dated$ +#'....? %e &e"e'ted !"

e,uall/ %e/o#d ,ue"t!o#. 7o& aella#t !" a h!l!!#e 'o&o&at!o# o*!#g ull alleg!a#'e

a#d "u%>e't to the u#&e"t&!'ted >u&!"d!'t!o# o lo'al 'ou&t". +t" "ha&e" o "to' 'a##ot

the&eo&e %e 'o#"!de&ed !# a#/ *!"e a" !u#e &o la*ul 'ou&t o&de&".

Du& hold!#g !# ell" 7a&go a# a#d F#!o# v. Colle'to& o +#teal Reve#ue !#d"

al!'at!o#. ?+# the !#"ta#t 'a"e$ the a'tual "!tu" o the "ha&e" o "to' !" !# theh!l!!#e"$ the 'o&o&at!o# %e!#g do!'!led @he&e.? To the o&'e o the a%ove

u#de#!a%le &oo"!t!o#$ #ot eve# aella#t !" !#"e#"!%le. +t doe" #ot d!"ute !t. No&

'ould !t "u''e""ull/ do "o eve# ! !t *e&e "o !#ded.

G.R. N. L/2/>5 9ana#; 3>! /06>TESTATE ESTATE OF C. O. BOHANAN!

d','a-'d. PHILIPPINE TRUST CO.! '',*#a%%'&&''!+-.MAGALENA C.

BOHANAN! E@AR C. BOHANAN! and MARY LYIA BOHANAN!%%-$*#-

a%%'&&an*-.


13/16

Fa,*-:C.D. oha#a# *a" %o !# Ne%&a"a a#d the&eo&e a '!t!Le# o that "tate.

Not*!th"ta#d!#g h!" lo#g &e"!de#'e !# the h!l!!#e"$ he 'o#t!#ued a#d &ea!#ed to %e

a '!t!Le# o the F#!ted State" a#d o the "tate o h!" e&t!#e#t &e"!de#'e to "e#d the

&e"t o h!" da/" !# that "tate. I!" e&a#e#t &e"!de#'e o& do!'!le !# the F#!ted State"

dee#ded uo# h!" e&"o#al !#te#t o& de"!&e$ a#d he "ele'ted Nevada a" h!" ho!'!de

a#d the&eo&e at the t!e o h!" death$ he *a" a '!t!Le# o that "tate.

I--'-:

The oo"!to&"$ Bagadale#a C. oha#a# a#d he& t*o 'h!ld&e#$ ,ue"t!o# the val!d!t/ o

the exe'uto&Pte"tato& C.D. oha#a#K" la"t *!ll a#d te"tae#t$ 'la!!#g that the/ have

%ee# de&!ved o the leg!t!ate that the la*" o the o& 'o#'ede to the. A#othe&$ !"

the 'la! o the te"tato&8" 'h!ld&e#$ d*a&d a#d Ba&/ :/d!a oha#a#$ *ho had &e'e!ved

lega'!e" !# the aou#t o I 6$ 000 ea'h o#l/$ a#d$ the&eo&e$ have #ot %ee# g!ve#

the!& "ha&e" !# the e"tate *h!'h$ !# a''o&da#'e *!th the la*"$ "hould %e t*o-th!&d" o

the e"tate let %/ the te"tato&.

(4" one/$alf of t$e residuary estate, to t$e 5armers and %erc$ants ational *an. of

#os Angeles, California, 6)A in trust only for t$e -enefit of testator7s grandson

Edard 8eorge *o$anan, $ic$ consists of several mining companies9 (:" t$e ot$er

$alf of t$e residuary estate to t$e testator7s -rot$er, 5# *o$anan, and $is sister, %rs

% * 8al-rait$, s$are and s$are ali.e +$is consist in t$e same amount of cas$ and of

s$ares of mining stoc. similar to t$ose given to testator7s grandson9 (;" legacies of

P,===9 and

Eliza-et$ ?astings, P:,===9

It ill -e seen from t$e a-ove t$at out of t$e total estate (after deducting administration

e2penses" of P:44,


14/16

'ou&t &eu"ed to &e'og#!Le the 'la! o the *!do* o# the g&ou#d that the la*" o

Nevada$ o *h!'h the de'ea"ed *a" a '!t!Le#$ allo* h! to d!"o"e o all o h!"

&oe&t!e" *!thout &e,u!&!#g h! to leave a#/ o&t!o# o h!" e"tate to h!" o&e& (o&

d!vo&'ed) *!e. No &!ght to "ha&e !# the !#he&!ta#'e !# avo& o a d!vo&'ed *!e ex!"t" !#

the State o Nevada$ thu" the oo"!to& 'a# #o lo#ge& 'la! o&t!o# o the e"tate let %/

the te"tato&. !th &ega&d" the "e'o#d !""ue$ the old C!v!l Code$ *h!'h !" al!'a%le to

th!" 'a"e %e'au"e the te"tato& d!ed !# 1944$ ex&e""l/ &ov!de" that "u''e""!o#al &!ght"to e&"o#al &oe&t/ a&e to %e eaed %/ the #at!o#al la* o the e&"o# *ho"e

"u''e""!o# !" !# ,ue"t!o#$ thu" the t*o-th!&d &ule !" #ot e#o&'ea%le.

he&eo&e$ the 'ou&t !#d" that the te"tato& C. D. oha#a# *a" at the t!e o h!" death

a '!t!Le# o the F#!ted State" a#d o the State o Nevada a#d de'la&e" that h!" *!ll a#d

te"tae#t !" ull/ !# a''o&da#'e *!th the la*" o the "tate o Nevada a#d ad!t" the

"ae to &o%ate. A" !# a''o&da#'e *!th A&t!'le 10 o the old C!v!l Code$ the val!d!t/ o

te"tae#ta&/ d!"o"!t!o#" a&e to %e goveed %/ the #at!o#al la* o the te"tato&$ a#d a"

!t ha" %ee# de'!ded a#d !t !" #ot d!"uted that the #at!o#al la* o the te"tato& !" that o

the State o Nevada *h!'h allo*" a te"tato& to d!"o"e o all h!" &oe&t/ a''o&d!#g to

h!" *!ll$ a" !# the 'a"e at %a&$ the o&de& o the 'ou&t a&ov!#g the &o>e't o a&t!t!o#

ade !# a''o&da#'e *!th the te"tae#ta&/ &ov!"!o#"$ u"t %e$ a" !t !" he&e%/ a!&ed$

*!th 'o"t" aga!#"t aella#t".

T'-*a*' E-*a*' 9-'%) G. B#$! 9UAN MICIANO! ad$n$-*#a*#!et!t!o#e&-aellee$ v". ANRE BRIMO!oo#e#t-aella#t.(Ross, #arence and )elp$ for appellantCamus and Delgado for appellee"

ROMUALE! J.:

The a&t!t!o# o the e"tate let %/ the de'ea"ed o"eh G. &!o !" !# ,ue"t!o# !#th!" 'a"e.

The >ud!'!al ad!#!"t&ato& o th!" e"tate !led a "'hee o a&t!t!o#. A#d&e &!o$o#e o the %&othe&" o the de'ea"ed$ oo"ed !t. The 'ou&t$ ho*eve&$ a&oved !t.

The e&&o&" *h!'h the oo"!to&-aella#t a""!g#" a&e

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