E-Jurisdiction-Full/DigestG.R. No. 186366 July 3, 2013E!R" #F J#"EFERN$ND#, %E&!&!#NER", 's.RE(N$)D# DE *E)EN, RE"%#NDEN&.D E + ! " ! # N%ERE,, J.:ThisPetitionforReviewonCertiorari underRule 45 of the Rules of Court seeks thereversal of the 11 February 2009 Deision1 ofthe Court of !""eals in C!#$%R% C& 'o%()5((* settin+asidethe2(,tober 2005Deision2 of theRe+ional Trial Court -RTC.*/ranh10of 0alolos City* /ulaan* whihrendered a favorable 1ndin+ for the"etitioners in a o2"laint for reovery of"ossession doketed as Civil Case 'o% 1(0#0#9(%The FatsThis ase e2anated fro2a o2"laint forReovery of Possession3 1led on 4 0arh199( by the "etitioners a+ainst Reynaldo De/elen* herein res"ondent* before the RTC*/ranh10of 0alolos* /ulaan* involvin+a"arel of land overed by ,ri+inal Certi1ateof Title -,CT. 'o% R,#4() -99). re+istered inthe na2e of the late 5ose* 2arried to 6uilaTinioand!"oloniaFernando* wifeof Feli"e$alve7* onsistin+ of 124*994 s8uare 2eters*2oreor less* whihissituatedin/aliua+*/ulaan%9nthesaido2"laint* it was alle+edthat"etitionersarethehildrenofthelate5oseandtheyareinthe"roessof "artitionin+their inheritane% :owever* theyouldnot"ro"erly ao2"lish the "artition due to the"resene of the res"ondent who intrudedinto a "ortion of their "ro"erty andonduted 8uarryin+ o"erations in itsi22ediate viinity for so 2any years*without their knowled+e and "er2ission%4Petitioners* therefore* wrote a letter5 dated (!"ril 199) to the res"ondent whih wasunheeded; thus* a baran+ay oniliation wasresorted to% For failure of the res"ondent toa""ear* a Certi1ation4 was issued by the/aran+ay 6u"on that led to the 1lin+ of theo2"laint before the RTC of 0alolos* /ulaandoketed as Civil Case 'o% 1(0#0#9( toassert and defend their ri+ht over the subatidentity* "ersonal iru2stanes andrelationshi" of the individual heirs of thedeedent* loation* area and si7e of thesublusive andabsolute lai2 of ownershi" over the entire"ro"erty overed by the ,CT 'o% R,#4()-99).%Fro2thesaid,rder* theres"ondentneverraised any obeution%@, ,RDARAD%Pa+e 4E-Jurisdiction-Full/DigestD!GE"&E!R" #F J#"E FERN$ND# -. DE *E)ENF.cts/Petitioners* whoarethehildrenofthe late 5ose Fernando* 1led a o2"laint forReoveryof Possessionof a"arel of landbefore the RTC of 0alolos* /ulaan% The"arel of landisownedby5oseFernando*2arried to 6uila Tonio and !"oloniaFernando* 2arried to Feli"e $alve7% !"olonia"redeaesedher brother 5oseandwithoutissue thus her undivided share wasonsolidatedwiththat of 5ose% !baran+ayoniliation was resorted to but failed henea erti1ation by the baran+ay lu"on to the1lin+ of the o2"laint was issued%Reynaldo de /elen 1led a 2otion to dis2issinstead of 1lin+ an answer settin+ forth thefollowin+ +rounds? -1. lak of tension of ti2eto 1le "etitionfor review on certiorari%25ralaw virtualawlibraryFollowin+ the enat2ent of Re"ubli !t 'o%()99 -Securities Regulation Code.*24 @ACCase 'o% 09#9(#40(4 was transferred to theRTCin0akati City* whihre#doketeditasCivil Case 'o% 01#(40 and raSed it to /ranh13(%2)ralaw virtualaw library0eanwhile* on 5anuary 1(* 1999* P,TC held a@"eial @tokholders= 0eetin+* atwhihthefollowin+ were eleted as Diretors of P,TC*na2ely? Roberto @% /enedito* !tty% &itor!fria* @ylvia 9lusorio* :onorio Poblador 999*Cristina!+aoili* EatrinaPoneAnrile* and'ieto* 5r% The eleted Diretors* e>e"t 'ieto*5r%* eventually for2ed the !fria#9lusorio$rou"% Thereafter* the /oard of Diretorsheld an or+ani7ational 2eetin+ durin+ whihthey eleted the followin+ as the ,Iers ofP,TC* na2ely? Roberto @% /enedito-Chair2an.; !tty% &itor !fria -&ie#Chair2an.; @ylvia 9lusorio -President.; EatrinaPone Anrile -&ie President.; Rafael Poblador-Treasurer.; Eithie /enedito -!ssistantTreasurer.; and!tty% &itoriadelos Reyes-Cor"orate @eretary.%2(ralaw virtualawlibrary,n Dee2ber 20* 1999* the @andi+anbayan"ro2ul+ated a resolution in @/ Civil Case 'o%009 denyin+ 9RC and 0id#Pasi+=s 2otions tovaate the order a""rovin+ the o2"ro2isea+ree2ent* viz?B:ARAF,RA* "re2ises onsidered* third#"arty defendant 0id#Pasi+=s 0otion to &aateResolution !""rovin+ Co2"ro2ise!+ree2ent dated !u+ust 14* 199( and third"arty defendant 9nde"endent RealtyCor"orationTs 0anifestation and 0otiondated,tober 2* 199(andtheredundantandina""ro"riateonurreneof thePC$$andthe,@$areherebydeniedforlakof2erit%TheCourt alsodelaresall P,TCsharesinthena2eof 0id#Pasi+and9RCasnull andvoid% !ordin+ly* out of the 5*400 P,TCshares* si>hundredseventythree-4)3. ishereby direted to be issued in the na2e ofPoteniano 9lusorio and four thousand sevenhundred twenty seven -4*)2). in the na2e ofthe Re"ubli of the Phili""ines% The /oard ofDiretors* President and Cor"orate @eretaryof theP,TCareherebyorderedtoo2"lywiththisre8uire2ent withinten-10. daysfro2 reei"t of this Resolution%29ralawvirtualaw library9n o2"liane with the resolution* P,TCCor"orate @eretary &itoria de los ReyeseCeted the anellation of the sharesre+istered in the na2es of 9RC and 0id#Pasi+and issued Certi1ate of @toks 'o% 131overin+ the 4*)2) P,TC shares in the na2eof the Re"ubli% Thereafter* Certi1ate of@toks 'o% 131 was trans2itted to then ChiefPresidential 6e+al Counsel and PC$$Chair2an 0a+dan+al Al2a* whoaknowled+ed reei"t% Throu+h its resolutiondated 5anuary 12* 2000* the @andi+anbayannoted the P,TC Cor"orate @eretary=sPa+e 13E-Jurisdiction-Full/Digesto2"liane%30ralaw virtualaw library!s earlier 2entioned* the i2"le2entation ofthe @andi+anbayan=s resolution datedDee2ber 20* 1999 resulted in the re#distributionoftheshareholdin+sinP,TCinthe 2anner earlier shown%,n0arh14* 2000* thePC$$1ledinthisCourtits"etitionassailin+theresolutionofthe @andi+anbayan dated Dee2ber 20*1999-$%R% 'o% 141)94entitled Republicofthe Philippines, represented by thePresidential Commission on oodovernment v. Sandiganbayan andPotenciano !. "lusorio, substituted by #a.$rlinda "lusorio %ildner.%9RC and 0id#Pasi+ also 1led in this Court theirown"etitiontoassail theresolutiondatedDee2ber 20* 1999 -$%R% 'o% 141(04entitled "ndependent Realty Corporation and#id&Pasig'and(evelopmentCorporationv.Sandiganbayan and Potenciano !. "lusorio,substitutedby#a. $rlinda"lusorio%ildner.%,n 0arh 29* 2000* this Court issued a TR,to eneutin+its assailed resolution%31ralaw virtualawlibrary,n @e"te2ber 4* 2000* President Astradano2inatedanother set totheP:96C,0@!T/oardof Diretors* na2ely? Car2elo!fria*Federio !+aoili* Pai1o 0arelo andAd+ardo &illanueva% Thereby* !fria and&illanueva were retained as P:96C,0@!TDiretors* while !+aoili and 0arelore"laed !raneta and @alon+a%32ralawvirtualaw library@ubse8uently* P,TC* throu+h the !fria#/ildner $rou"* deided to hold a @"eial@tokholders= 0eetin+ on @e"te2ber 22*2000% P,TC Cor"orate @eretary de los Reyesissueda'otieof 0eetin+% !tte2"tin+tosto" the @tokholders= 0eetin+* 'ieto* 5r%*!ranetaand@alon+a1ledinthis Court in$%R% 'o% 141)94 and $%R% 'o%141(04 a0otionfor 6eaveto9ntervenewithur+ent2anifestation for onte2"t of ourt* "rayin+*a2on+ others* that P,TC Cor"orate@eretary de los Reyes be ited in onte2"tandNor disbarred for issuin+ the 'otie of0eetin+%33ralaw virtualaw libraryThe @"eial @tokholders= 0eetin+ on@e"te2ber 22* 2000 was attended bystokholders re"resentin+ (1%32L of theoutstandin+ a"ital stok of P,TC -inludin+PC$$.% Durin+the2eetin+* anewset ofP,TC /oard of Diretors were eleted*na2ely? 'ieto* 5r%* Eatrina Pone Anrile* &itor&% !fria* @ylvia E% 9lusorio* :onorio !%Poblador 999* Car2elo !fria and PC$$Co22issioner 5or+e @ar2iento -the lattertwo bein+ no2inated by PC$$.%34ralawvirtualaw libraryP,TC then onvened a @"eial @tokholders=0eetin+ of P:96C,0@!T* at whih thefollowin+ were eleted as Diretors? 'ieto* 5r%*Franisa /enedito* Eatrina Pone Anrile*@ylvia 9lusorio* :onorio Poblador 999* and+overn2entre"resentatives!fria* 0arelo*&illanueva and !+aoili -the latter four bein+no2inated by PC$$.%35ralaw virtualawlibrary9n line with e>istin+ or"orate "oliyre8uirin+ the eleted Diretors to ae"ttheir eletion before assu2in+ their"ositions* all the eleted Diretors -inludin+'ieto* 5r%. were re8uested to si+n ae"taneletterstobesub2ittedtoP,TCCor"orate@eretary delos Reyes% !fewdays later*however* 'ieto* 5r% refused to ae"t andinsteado"tedtoassail thevalidityof the@e"te2ber 22* 2000 P,TC @"eial@tokholders= 0eetin+%34ralaw virtualawlibrary/y virtue of the @e"te2ber 22* 2000eletions* the!fria#/ildner$rou"* to+etherwith the PC$$ no2inees* took ontrol of the2ana+e2ent and o"erations of P,TCandP:96C,0@!T%3)ralaw virtualaw library9n0arh2002* President$loria0aa"a+al#!rroyo na2ed Anri8ue 6% 6osin and 0anuelD% !ndal as new PC$$ no2inees to sit in theP,TCandP:96C,0@!T/oardsof Diretors%Pa+e 14E-Jurisdiction-Full/Digest5ulio5alandoni wasna2edasthethirdnewPC$$ no2inee to the P:96C,0@!T /oard ofDiretors%3(ralaw virtualaw library,n !"ril 29* 2002* P,TC* throu+h the !fria#9lusorio $rou"* deided to hold astokholders= 2eetin+% 'oties for the2eetin+ were dis"athed to all stokholdersof reord* inludin+theRe"ubli% :owever*the 2eetin+ was ad > > >4% > > >% Considerin+ the fore+oin+* it isbelieved and hu2bly sub2itted that theTC,0A6ACT diretedtobeor+ani7edunderthe ,rder is unneessary onsiderin+ that itswould#befuntions-wenotethatthe,rderdid not state what are the funtions of saidC,0A6AC. an and will be "erfor2ed by the'o2ination Co22ittee and the s"eialo22ittee of ins"etors%Considerin+thefore+oin+* it isres"etfullyre8uestedand"rayedthat thesaid,rderdated 5 5anuary 2004 of the Co22ission bePa+e 15E-Jurisdiction-Full/Digestreonsidered and set aside% To enable P:C tohold an orderly and ontroversy#free 2eetin+of itsstokholdersandeletionof diretorsthisyear* it islikewisere8uestedthat theCo22ission 1rst diret and ause P:CTs"arent o2"anies* na2ely Philo2sat andP,TC* toholdtheirres"etivestokholdersT2eetin+ and eletion and diretors andoIers "rior to those of P:C%42ralawvirtualaw library,n 0ay 4* 2004* the @AC ruled asfollows?ralawlibrary/ased on the fore+oin+ "re2ises* theCo22ission* in the e>erise of its re+ulatoryauthority as well as su"ervision or"orationsand "ursuant to its "ower under @etion 5 -k.of the @eurities Re+ulation Code -@RC.whihstates? PCompel theo)cers of anyregisteredcorporation orassociationto callmeetings of stoc*holders or membersthereof under its supervision*Q hereby ordersthe followin+?1% The board of diretors* res"onsible oIersofPhilo2sat:oldin+s* Cor"oration-PP:CQ.shall i22ediatelyonvenetheC,0A6ACtoonsider the"ro"osedeletionandannual2eetin+ of suby to theP:96C,0@!T stokholders= 2eetin+% 6osinand !ndal were also eleted as P:96C,0@!TDiretors% :owever* 'ieto* 5r%* 6osin and!ndaldid not ae"t their eletion as P,TCand P:96C,0@!T Diretors%4)ralaw virtualawlibrary,n!u+ust 5* 2004* the'ieto#PC$$$rou"onduted the annual stokholders= 2eetin+for P,TCat the0anila$olf Club% Aletedwere 'ieto* 5r% as President and $uy de 6eon*a +overn2ent no2inee to P,TC* asChair2an% !tthesa2e2eetin+* the'ieto#PC$$$rou"* throu+hits eleted/oardofDiretors* issued a "ro>y in favor of 'ieto* 5r%andNor 6osin authori7in+ the2 to re"resentP,TC and vote the P,TC shares in theP:96C,0@!T stokholders= 2eetin+sheduled on !u+ust 9* 2004%4(ralawvirtualaw library,n!u+ust 9* 2004* the'ieto#PC$$$rou"held the stokholders= 2eetin+ forP:96C,0@!T at the 0anila $olf Club%922ediately after the stokholders= 2eetin+*an or+ani7ational 2eetin+ was held* and'ieto* 5r% and 6osin were res"etivelyeleted as Chair2an and President ofP:96C,0@!T% !t the sa2e 2eetin+*P:96C,0@!T -'ieto#PC$$$rou". issued a"ro>y in favor of 'ieto* 5r% andNor 6osinauthori7in+the2tore"resent P:96C,0@!Tand vote the P:96C,0@!T shares in thestokholders= 2eetin+of P:Csheduledon!u+ust 31* 2004%49ralawvirtualawlibrary,n !u+ust 11* 2004* P,TC -!fria#/ildner$rou".* &itor !fria* :onorio Poblador 999 andEatrina Pone Anrile 1led a Co2"laint forin > > >!ftera"erusal oftheo2"laintandofthe2e2oranda 1led* with "artiular attention onthe authorities ited* the Court is of theo"inionthat it hasno > > >Thereafter* the!fria#/ildner $rou"1leda2otion for reonsideration%Aarlier* on !u+ust 1(* 2004* P:C -'ieto#PC$$ $rou". sub2itted to the @AC a 1nal listof andidates for 9nde"endent Diretors ofP:C for the 2004#2005 ter2* to wit?Pleasebeinfor2edthat inonnetionwiththe annual stokholdersT 2eetin+ ofP:96C,0@!T :,6D9'$@ C,RP,R!T9,' -P:C.to be held on !u+ust 31* 2004* and ino2"liane with the ,rder dated ( 5uly 2004of the @eurities and A>han+e Co22issionin@ACCase'o% 12#03#03entitledP9nthe2atter of Philo2sat :oldin+sCor"oration*For? Callin+ of 0eetin+*Q the /oard ofDiretors of P:C* at its 2eetin+ todayonstitutedthe'o2inationCo22itteewiththe followin+ "ersons as its2e2bers?ralawlibrary&otin+ 0e2bers?ralawlibrary1% 6uis E% 6okin* 5r% -re"resentativeof the'ieto $rou".2% Anri8ue6% 6osin-re"resentativeof thePC$$.3% &aant -to be desi+nated by the @euritiesand A>han+e Co22ission in default of thedesi+nationof re"resentativebythe!fria+rou".Pa+e 19E-Jurisdiction-Full/Digest'on#votin+ 2e2ber?ralawlibrary1% Phili" $% /rodettThe said 'o2ination Co22ittee whih shallat u"on the aIr2ative vote of at least two-2. of its votin+2e2bers* shall havethefollowin+ "owers* duties andfuntions?ralawlibrary-1. To "re#sreen and shortlist all andidatesno2inated to beo2e 2e2bers of the boardof diretors in aordane with the8uali1ations anddis8uali1ations andthe"roedures "resribed inthe Cor"orationTs0anual on Cor"orate $overnaneandthe@eurities Re+ulation Code -@RC. and its92"le2entin+ Rules and Re+ulations -@RCRules.;hanr0blesvirtualawlibrary-2. To sub2it to the @eurities and A>han+eCo22ission and the Phili""ine @tokA>han+e the Final 6ist of andidates for9nde"endent Diretors as re8uired under the@AC Rules;hanr0blesvirtualawlibrary-3. Toat as theo22itteeof ins"etorswith "owers to "ass u"on the validity of"ro>ies* toanvassandtallythevotesfortheeletionof diretorsandtoertifythewinnin+ diretors based on the votes+arnered;hanr0blesvirtualawlibrary-4. Todosuhatsorthin+sas2ayfro2ti2e to ti2e be direted or dele+ated by the/oard%51ralaw virtualaw library,n !u+ust 20* 2004* the @AC issued anorder* "ertinently statin+?,n se"arate dates* the +rou" of !tty% &itor!fria -P!fria $rou"=. and the +rou" of!2bassador 'ieto -P'ieto +rou"Q. ondutedtheir res"etive annual stokholders=2eetin+s% The!fria+rou"heldsuessive2eetin+s for P,TC and Philo2sat on 5uly 2(*2004* while the 'ieto +rou" held si2ilar2eetin+s for P,TC and Philo2sat on !u+ust5and!u+ust 9* res"etively% ,nall these2eetin+s* where the @AC re"resentative was"resent -e>e"t thePhilo2sat 2eetin+ofthe !fria +rou".* the Co22ission noted thefollowin+ observations?ralawlibrary> > > >9n li+ht of the fore+oin+* the Co22issionhereby u"holds the validity of thestokholdersT 2eetin+s onduted by the'ieto $rou" in view of the lear o2"lianeby the said +rou" with the ondition set forthby the Co22ission in its ,rders of 5uly ( and24* 2004%0eanwhile* theP:C2eetin+shall "roeedas sheduled on !u+ust 31* 2004% The,Iers and Diretors of P:C are herebyre2inded to stritly onfor2 to theonditions stated in the 5uly ( and 24 ,rders%The President and the Cor"orate @eretary ofP:Candits @tokandTransfer !+ent arehereby ordered to sub2it to the Co22issionthe erti1ed list of stokholders and thestok and transfer book of P:C on or before!u+ust 25* 2004%Due to the failure of the !fria +rou" tono2inate their re"resentative to the P:C',0A6AC* !tty% &itoria De 6os Reyes isherebydesi+natedasthere"resentativeofthe!fria+rou"inthefortho2in+!u+ust31* 2004 P:C 2eetin+%The Cor"oration Finane De"art2ent ishereby direted to 2onitor P:CTs o2"lianewith the laws* rules and re+ulations relativetotheallin+of thestokholdersT 2eetin+and to 2ake the neessary ation to ensuresuh o2"liane%The ,rders of ( 5uly 2004 and 24 5uly 2004insofar as not inonsistent withthis ,rdershallre2ain in fullforeand eCet%52ralawvirtualaw library,n !u+ust 23* 2004* the !fria $rou"o22ened Civil Case 'o% 01#555 in the RTCin0akati City-/ranh41.* "rayin+for theissuane of a TR, or BP9 to Peny sub2itted by 6osin%,n !u+ust 2)* 2004* the 'ieto $rou"sub2itted to the @AC the 1nal list ofandidates for 9nde"endent Diretors of P:Cfor theter22004#2005% Thelist ontainedthena2es of /enito!ranetaandRoberto!bad* bothno2inatedby/rodett% Thelistwas sub2itted by ',0A6AC 2e2bers 6okin*5r%* 6osin and /rodett%,nthesa2edate* P,TCandP:96C,0@!T-!fria $rou".* throu+h !tty% &itor !fria*1ledintheC!a"etitionfor certiorari and"rohibition-with"rayer for TR,andBP9.seekin+toannul andset asidetheordersissuedon5uly(* 2004* 5uly24* 2004and!u+ust 20* 2004 issued in @AC Case 'o% 12#03#03 -C%!%#$%R% @P 'o% (5959.%54ralawvirtualaw library,n !u+ust 31* 2004* the C! "ro2ul+ated inC%!%#$%R% @P 'o% (5959 a resolution +rantin+a TR,* "ertinently statin+?9n the 2eanti2e* sine the "etition 8uestionsthe eutin+ the aforesaid assailed ,rderswithina"eriodof si>ty-40. days or untilsooner revoked%55ralaw virtualaw libraryThe C! later +ranted the a""liation for BP9*andeneutive,Ier; /rodett as Diretor and &iePresident; 0anuel D% !ndal as Diretor*Treasurer and Chief Finanial ,Ier; Roberto@an 5ose as Diretor and Cor"orate@eretary; 5ulio 5alandoni* 6okin* 5r%*Prudenio @o2era* Roberto !bad* and /enito!raneta as Diretors%5)ralaw virtualawlibrary,n @e"te2ber 10* 2004* P:96C,0@!T -!fria$rou".* re"resented by &itor !fria* 1led inthe RTC in 0akati City -/ranh 13(. ao2"laint a+ainst P:C* 6okin* 5r%* 6osin and/rodett -Civil Case 'o% 04#1049. seekin+ thefollowin+ reliefs* to wit?1% The "roeedin+s of the 'o2inationCo22ittee be invalidated for havin+ been inviolation of the 0anual of Cor"orate$overnane of defendantP:C;hanr0blesvirtualawlibrary2% Theatof the'o2inationCo22itteeinvalidatin+ the "ro>y issued in favor of 0anuel'ieto andNor defendant Anri8ue 6osin and ininvalidatin+ the "ro>y issued in favor of&itor !fria beannulled;hanr0blesvirtualawlibrary3% The eletions held and the "rola2ation ofwinners durin+ the !nnual @tokholdersT0eetin+ of defendant P:C held on 31 !u+ust2004beannulled;hanr0blesvirtualawlibrary4% Defendant P:Cbediretedtoreo+ni7ePa+e 21E-Jurisdiction-Full/Digest!tty% &itor !fria as the "ro>y of "laintiC andthat he be allowed to vote the sharesstandin+ in the na2e of "laintiC atsubse8uent eletions for the 2e2bers of theboard of diretors of defendant P:C%5(ralawvirtualaw library,n ,tober 21* 2004* P:96C,0@!T -'ieto$rou". and 6okin* 5r% 1led their !nswer with$rounds for Dis2issal and Co2"ulsoryCounterlai2s* averrin+ therein* a2on+others* as follows?3)% The instant o2"laint 2ust beD9@09@@AD for lak of a"aity andNorauthority of the alle+ed re"resentative*&itor &% !fria* to 1le the sa2e and sue thedefendants on behalf of Philo2sat%3(% BhiletheCo2"laint na2esPhilo2satas the "laintiC* alle+edly re"resented by&itor !fria* at no ti2e did GPHhilo2sat*throu+h its duly onstituted /oard ofDiretors* authori7e hi2to 1le the sa2e%39% &itor !fria bases his authority u"on the@eretary Certi1ate* alle+in+ that thePhilo2sat /oard of Diretors* durin+ its2eetin+heldon2(5uly2004* authori7edhi2to 1lele+al ations onbehalf of theor"oration%40% 9tisres"etfullyaverred* however* thatPhilo2sat* throu+h its duly onstituted/oard of Diretors D9D ',T :,6D any2eetin+ on 2( 5uly 2004* and D9D ',T!RT:,R9UA !fria to 1le any ation or to doany at or deed on its behalf% The @eretaryTsCerti1atehere"resentedisnot si+nedby!tty% 6uis E% 6okin* 5r%* the duly#eletedCor"orate @eretary of Philo2sat%> > > >50% There was no Philo2sat /oard 2eetin+held or authori7ed to be held on 2(5uly2004% 'either was there any authority vestedu"on&itor!friato1lethisnuisanesuit*whih is only ai2ed at needlessly harassin+defendants and the other lawful stokholdersof Philo2sat and P:Cand the "ubli atlar+e%51% For lak of any fatual and le+al basis ofthe alle+ed authority of the "erson institutin+and verifyin+the instanto2"laint*it2ustbe delared as a 'R9@!'CA @R9T andi22ediately D9@09@@ADby the :onorableCourt* "ursuant to @etion 1 -b. of the9nteri2 Rules%52% Further2ore* not onlydoes!frialakanyauthorityto1letheinstantation* theo2"laint itself is devoid of any 2eritoriousle+al basis%53% The relevant fats are as follows? 9n 2003*a stokholder of P:C 1led a letter#o2"laint-later doketedas@ACCase'o% 12#03#03.with the @AC* alle+in+ the non#holdin+ of theannual stokholdersT 2eetin+ sine 2002%:earin+s were onduted wherein theoIers and diretors of P,TC and Philo2satwere re8uired to be "resent and to 1le theiro22ents% &itor !fria atively "artii"atedinthe"roeedin+s beforethe@AC* inhisalle+ed a"aity as oIer of P,TC*Philo2sat and P:C%54% 9nviewof the+overn2ent interest inP,TCwhihisthesolebene1ial owner ofPhilo2sat* whih in turn* is the (0LstokholderofP:C* andthefatthatP,TCand Philo2sat are under se8uestration* thePC$$ was likewise direted to 1le theiro22ents on the 2atters raised by the"arties% PC$$* throu+hthenCo22issioner&itoria !vena* asserted that the +overn2entholds 40L interest in P,TC% > > >%55% Thereafter* the @AC issued theaforestated ,rder on 0( 5uly 2004* diretin+the oIers of P,TC and Philo2sat toondut their res"etive stokholdersT2eetin+s% /efore the rendition of the 0( 5uly2004 ,rder* the !fria +rou" did not ondutany stokholdersT 2eetin+ of P,TC orPhilo2sat* buttheywouldlaterlai2thatthey had a+reed* as early as 02 5uly 2004* tohold the 2eetin+s on 0( 5uly 2004% $iven theti2in+of the2eetin+* however* whihwasheldafter the0(5uly2004@AC,rder* noredene ould be +iven to suh self#servin+lai2% Theti2in+anddatesare2orethanPa+e 22E-Jurisdiction-Full/Digest2ere onvenient oinidenes%54% !fter P,TC and Philo2sat duly held theirres"etive stokholdersT 2eetin+s on 05!u+ust2004and09!u+ust2004* the@ACu"heldthevalidityof their 2eetin+sinits,rder dated 20 !u+ust 2004%5)% Thereafter* !fria initiated a series ofations in diCerent tribunals in an atte2"t tobasially"revent theP,TCandPhilo2satDiretors and,Iers fro2atin+intheira"aity as suh%59ralaw virtualaw library,n 'ove2ber 1(* 2004* PC$$ e>"resslyado"tedthe!nswer of P:96C,0@!T-'ieto$rou".asitsown!nswerinCivil Case'o%04#1049%40ralaw virtualaw library,nDee2ber )* 2004* theRTCdeniedthe!fria $rou"=s 0otion for Reonsiderationassailin+ the order issued on !u+ust 2)*2004 in Civil Case 'o% 04#935%Bhereu"on* P,TC -!fria $rou". went to theC!on certiorari toannul andset asidetheorders issued on !u+ust 2)* 2004 andDee2ber )*2004 in CivilCase'o%04#935by the RTC -/ranh 133.% The suit* doketedas C%!%#$%R% @P ',% ((444* was dis2issed bythe C! on 5uly 5* 2005* the deision"ertinently statin+?>>>Bethushavetoaddressoneruialissue?Basthelowerourtorretinrulin+that the @andi+anbayan had erisin+ ontrol over the assets ando"erations of a se8uestered or"oration%They "osit that the "rivate res"ondents areusur"ers and have no ri+ht to sit in the boardof diretors or at as or"orate oIers of theP,TC% Avidently* these issues are Parisin+fro2* inidental to* or related toQ these8uestration ase a+ainst P,TC whih*underthelaw* shouldbeaddressedbythe@andi+anbayan%> > > >!ll told* the lower ourt did not o22it +raveabuse of disretion a2ountin+ to lak of or ine>ess of #Parte0otion to Resolve in Civil Case 'o% 04#1049%43ralaw virtualaw library!lso on 5uly 5* 2005* the C! "ro2ul+ated itsdeision in C%!%#$%R% @P 'o% ((444*dis2issin+ the "etition for certiorari -brou+httoassail thedis2issal bytheRTC-/ranh133.oftheo2"laintinCivil Case'o% 04#935.%44ralaw virtualaw library,n !u+ust 1(* 2005* P:96C,0@!T -'ieto$rou".* throu+h 6osin* sub2itted a Counter#0anifestation* ontendin+that thedeisionPa+e 23E-Jurisdiction-Full/Digestin $%R% 'o% 141)94 and $%R% 'o% 141(04 didnot o"erate to auto2atially nullify the"roeedin+s durin+ the stokholders=2eetin+ of P:C on !u+ust 31* 2004%45ralawvirtualaw library,n !u+ust 19* 2005* the RTC -/ranh 13(.*a""rised of the "endeny of 2otions forreonsideration in $%R% 'o% 141)94 and $%R%'o% 141(04* held in abeyane its ation u"onthe"arties= res"etive2anifestations untilaftertheresolutionof the"endin+2otionsforreonsideration%44ralawvirtualawlibrary,n @e"te2ber )* 2005* the Court denied the2otions for reonsideration in $%R% 'o%141)94 and $%R% 'o% 141(04* statin+?,bviously* "etitioners= 2otions forreonsideration are devoid of 2erit% The2atterstheyraiseare2erereiterationsofthe "revious ar+u2ents in their "etitionsalready onsidered and e>haustively "assedu"on in our 5uly 2)* 2005 -si. Deision%9ndeed* we 1nd no o+ent reason to deviatefro2 our Deision%!sre+ardstheseondinident* res"ondent/ildner seeks a lari1ation on the eCet ofthe TR,* issued by this Court on 0arh 29*2000* restrainin+ the i2"le2entation of thehallen+ed@andi+anbayanResolutiondatedDee2ber20*1999in Civil Case'o% 0009%9t 2ay be realled that in our 5une 15* 2005Deision* we dis2issed theseonsolidated"etitions assailin+ the @andi+anbayanResolution of Dee2ber 20* 1999% ThisResolution -1. denied "etitionersT se"arate2otions to vaate the @andi+anbayan ,rderdated 5une (* 199( a""rovin+ theCo2"ro2ise !+ree2ent; -2. delared the5*400P,TCsharesre+isteredinthena2esof "etitioners 9RC and 06DC null and void asthey ate+orially ad2itted that suh sharesare ill#+otten wealth ofde"osed President 0aros and his Fa2ily*and that the sa2e were surrendered to the$overn2ent whih now owns the sa2e; and-3. ordered the Cor"orate @eretary of P,TC*within 10 days fro2 reei"t of the Resolution*toissue4*)2)P,TCsharesinthena2eoftheRe"ubli* and4)3P,TCshares inthena2e of Poteniano 9lusorio* "ursuant to thea""roved Co2"ro2ise !+ree2ent% 9no2"liane with the @andi+anbayanResolution* !tty% &itoria C% de los Reyes*Cor"orate @eretary of the P,TC* on 5anuary10* 2000* trans2itted to 0r% 5ustie0a+dan+al /% Al2a* thenChief Presidential6e+al Counsel and Chair2an of Phili""ineCo22issionon$ood $overn2ent -PC$$.*@tok Certi1ate 'o% 131 -of even date.issuedinthena2eof theRe"ubliof thePhili""ines* for 4*)2) P,TC shares% Thus* theCo2"ro2ise !+ree2ent was "artlyi2"le2ented%9n her "resent 2otion for lari1ation*res"ondent /ildner alle+es inter alia that* on0arh 29* 2000 or 2ore than two -2. 2onthsaftertheCo2"ro2ise!+ree2enthadbeeni2"le2ented on 5anuary 10* 2000* this Courtissued a TR, restrainin+ its i2"le2entation%There is no need for us to 2ake alari1ation bein+ sou+ht by res"ondent/ildnerinher2otion% @uIeittosaythatwhen the TR, was issued on 0arh 29* 2000*the@andi+anbayanResolutionof Dee2ber20* 1999 diretin+ the issuane of P,TCshares inthe na2es of the Re"ubli andPoteniano9lusorioinaordanewiththeCo2"ro2ise!+ree2ent hadbeen"artiallyi2"le2entedon5anuary10* 2000or 2orethan two -2. 2onths earlier by P,TCCor"orate @eretary &itoria C% de los Reyes%@he already trans2itted to then PC$$Chair2an 0a+dan+al /% Al2a @tokCerti1ate 'o% 131 issued in the na2e of theRe"ubliof thePhili""ines* for 4*)2)P,TCshares% This was never 2entioned by"etitioners intheir "etitions% 9nfat* evenbefore the "etitions in these ases were 1led*the i2"le2entation of the Co2"ro2ise5ud+2ent had been "artially eCeted% Bewere thus 2isled in issuin+ the TR,% 9n anyase* the TR, has beo2e 2oot andaade2i* thesa2ehavin+no2orele+alfore as the at sou+ht to be restrained hadbeen "artially i2"le2ented and onsiderin+our Deision in this ase%Pa+e 24E-Jurisdiction-Full/DigestB:ARAF,RA* "etitioners= instant 2otions forreonsideration are DA'9AD with F9'!69TO% ,nres"ondent /ildnerTs 2otion for lari1ation*the sa2e is onsidered 2oot andaade2i%4)ralaw virtualaw library9n the 2eanti2e* the RTC -/ranh 13(.re8uired the "arties to sub2it theirres"etive 2e2oranda in Civil Case 'o% 04#1049% /oth "arties o2"lied%4(ralawvirtualaw library,n@e"te2ber 14* 2005* the!fria$rou"brou+ht a s"eial ivil ationfor certiorari and prohibitionin this Courtassailin+ the deision "ro2ul+ated on 5uly 5*2005inC%!%#$%R% @P'o% ((444-$%R% 'o%1)1)99.%49ralaw virtualaw library,n @e"te2ber 22* 2005* P,TC andP:96C,0@!T -!fria#9lusorio $rou". eleted anew set of Diretors and ,Iers% 0a% Arlinda9% /ildner was eleted as the Chair2an of the/oards of Diretors of both P,TC andP:96C,0@!T%)0ralaw virtualaw library,n @e"te2ber 24* 2005* P,TC andP:96C,0@!T -'ieto $rou". initiated aCo2"laint for ineution of the deisionrendered on ,tober 14* 2004 in CivilCase'o% 04#1049 by the RTC -/ranh 13(.%!lthou+h on !"ril 4* 200)* P:C -'ieto$rou".* 6osin and /rodett o""osed the2otionfore>eution* theRTC-/ranh13(.+ranted the 2otion on !"ril 12* 200)* to wit?B:ARAF,RA* "re2ises onsidered* the Courthereby +rants the"laintiCTs 0otion% 6et awrit of e>eution be issued diretin+ thei2"le2entation of the followin+orders?ralawlibrary1. the individuals eleted by defendant6osin in the 2004 P:C !@0* and so"rolai2edtobeP:C=sboardof diretors*na2ely? Anri8ue 6osin* 5ulio 5alandoni*0anuel !ndal* 6uis 6okin* 5r%* Prudenio@o2era* 5r%* 0anuel :% 'ieto* 5r%* Roberto&%@an 5ose* Phili" /rodett* ,liverio 6a"eral*/enito !raneta and Roberto !bad and alltheir re"resentatives or a+ents are eny in the2004 P:C !@0 na2ely? &itor &% !fria*Arlinda 9% /ildner* Eatrina Pone Anrile*:onorio Poblador 999* Federio !+aoili*@ylviaE% 9lusorio and 5ose 0a% ,7a2i7 aredelaredasthevalidboardof diretorsofP:C; and3. the defendants are direted to render anaountin+ of funds of P:C sine 2004 u" tothe "resent within 15 days fro2 the 1nalityof this ,rder%)(ralaw virtualaw library,n!"ril 1(* 200)* P:C-'ieto$rou". and/rodett 1ledtheir Re"lywithReiterationofthe Rr+ent !""liation for Te2"oraryRestrainin+ ,rder and Preli2inary 9n%> > > >-3. Bhat 0r% 6osinhasdeliberatelyfailedandNorrefusedtodivul+etothis:onorableCourt u"on 1lin+ the instant "etition are thefollowin+ fats? -1. 0r% 6osin and his +rou"are e>atly the sa2e set of individuals whoo2"risetheres"ondentsinCivil Case'o%04#1049* thedeisionwhihisnowhereinassailed; and that -2. 0r% 6osin and his+rou"* "ur"ortedly* re"resentin+ earlier ortwoweeks"riortothe1lin+of theinstant"etition* already 1led an a""eal also with this:onorable Court* albeit "endin+ in a diCerentdivision* doketed as C!#$%R% @P 'o% 9(09)*raisin+ e>atly the sa2e issues and seekin+identialreliefsasthey are now "endin+ inthe ase at bar%> > > >-5. The diIulty in resolvin+ the "resentontroversy lod+ed before this :onorableCourt ste2s fro2the fat that even thele+iti2ate P,TC and P:96C,0@!Tre"resentatives beo2e a""arentlyundeter2inable%> > > >-9.'onetheless* theonMitin+lai2soverP,TC and P:96C,0@!T have 1nally o2e toresolution with the reent develo"2ents%-10. ,n 13 'ove2ber 200)* the +overn2enta""ointedits newno2inees to P,TCandP:96C,0@!T% For P,TC* the +overn2ent*throu+h Rnderseretary Anri8ue D% Pere7with the diretive of President $loria0aa"a+al!rroyo* a""ointed !tty% DanielC%$utierre7* !tty% !llan @% 0ontaKo and 5ustie@antia+o 5% Ranada -Ret%. to the P,TC boardand re"resent the +overn2entTs 34%9Lshareholdin+s intheboardof diretors ofP,TC% 9nthesa2e2annerandforanakin"ur"ose* the +overn2ent a""ointed 0r%Ra2on P%5ainto* 0r% Rodolfo $% @errano* 5r%andRad2% !braha2R% !besa2is-Ret%. tore"resent the +overn2entTs 34%9Lshareholdin+sontheboardof diretors ofP:96C,0@!T% !lthou+h this :onorable Court2ay take y issued bythe Re"ubli of the Phili""ines toRnderseretary Pere7 and the P9 desireQletterof the,Ieof thePresidentforthe+overn2entTs no2inees to P:96C,0@!T*both dated 13 'ove2ber 200)* and the listof no2inees of Rnderseretary Pere7 forP,TC and his letter to PC$$ Chair2anCa2ilo @abio* both dated 19 'ove2ber200)* are attahed and 2ade inte+ral"artshereof as !nne>es P/Q* P/Q* PCQ andPDQ*res"etively%-11. 'eedless to state* with the desi+nationandtheir seletionof thenew+overn2entno2inees to P,TC and P:96C,0@!T* the oldno2inees* na2ely? 0r% 6osin* 0r% 0anuel!ndal* 0r% 5ulio 5alandoni and 0r% $uy de6eonareauto2atiallyre"laed% Thisisanundeniablefat andhadalways beenthe"roedure in the a""oint2ent andre"lae2ent of +overn2ent no2inees to theboardof o2"anieswherethe+overn2enthas a substantial interest%-12.Followin+ the said a""oint2ent ofnewno2inees* neessarily* annual stokholders2eetin+s of both P,TC and P:96C,0@!Twereondutedandheldon19'ove2ber200)inordertoeletthenewdiretorsofthe res"etive boards of the two o2"anies%Durin+ the said 2eetin+s* where over 90L oftheshareholderswere"resent andNor dulyre"resented* the stokholders eleted thenew board of diretors of P,TC andP:96C,0@!T%These eletions are evidenedby the @eretaryTs Certi1ates duly e>eutedbytheCor"orate@eretaries of P,TCandP:96C,0@!T* o"iesof whihareattahedPa+e 29E-Jurisdiction-Full/Digestand2adeinte+ral "artshereof as!nne>esPAQ and PFQ* res"etively%-13. Thus* thenew+overn2ent no2inees*to+ether with the "rivate shareholders ofP,TC and Philo2sat are > >4% Throu+h the 2aliious 2otion to withdraw*there is a veiled atte2"t* to have this:onorableCourt u"holdandreo+ni7ethevalidityof thesu""osed2eetin+sheldbyru2" boards on 'ove2ber 19* 200)%This is a2atter that is"ro"erlyo+ni7ableonlybythe @andi+anbayan%5% 9n fat* there is already a "endin+o2"laint before the @andi+anbayan thatassails the su""osed 'ove2ber 19* 200)2eetin+sstatedinthe2otiontowithdraw%4% The@andi+anbayan* atin+throu+htheFifth Division* +ranted the issuane of aTe2"orary Restrainin+,rder onDee2ber21* 200)* to "revent and "rohibit anyreo+nition of these 'ove2ber 19* 200)2eetin+s% > > >%12% Petitioners* however* areo2"elledtoaddress the 2isleadin+ alle+ations andonlusionsinthe2otiontowithdraw% 9tisres"etfully 2anifested that these alle+ed'ove2ber 19* 200) 2eetin+s were notalled by the le+iti2ate boards of "etitionersP,TC and Philo2sat% ,nly the le+iti2ateboards* here re"resented by 0r% 6osin* an"ro"erly at u"on any han+e in the+overn2ent no2inees* and it is only thele+iti2ateboardsthat aninstall the2% !s2anifestedby"etitionerstothis:onorableCourt* sine there are no 2ore le+alhallen+es to the res"etive /oards ofDiretors of "etitioners ori+inally led byRonaldo @alon+a and 0anuel 'ieto* 5r%* sine199(* onlythesuessorsof theseboards*here re"resented by 0r% 6osin* an "ro"erlyre"resent "etitioners P,TC and P:96C,0@!T%12%1% The issue was settled with thedis2issal of thea""eal inC!$%R% C&'o%((340* whih ste22ed fro2the ori+inal"etition 1led in 199( by Poteniano 9lusorio*Eatrina Pone#Anrile* and their fa2ily ownedor"orations* to 8uestion the eletion of the'ieto#@alon+a board% The a""eal wasdis2issed by the :onorable Court of !""ealsin its Resolution dated 5une (* 200)* a o"yof whih is hereto attahed as !nne> /%13% 9t is si+ni1ant that the2anifestationand 2otion to withdraw2ade ad2issionsthat reo+ni7e the validity of the boardsre"resented by 0r% 6osin% Bhile "etitionersdo not ad2it to the +enuineness or duee>eution of the @eretaryTs Certi1ateswhihwerenot si+nedbytheduly#eletedCor"orate @eretary > > >* it 2ust be notedthat theauthorityof 0r% 6osinto1letheinstant "etition was reo+ni7ed and ad2ittedtherein% 9t was only lai2ed that suhauthorityPwaslostQwhenhewasalle+edlyre"laed* whihre"lae2ent* as disussedabove* is still dis"uted% Thus* even the ru2"boards ad2it that the 1lin+ of this "etition byPa+e 30E-Jurisdiction-Full/Digest0r% 6osin was duly authori7ed by P,TC andP:96C,0@!T%9)ralaw virtualaw library> > > >,n Dee2ber 21* 200)* the @andi+anbayan-Fifth Division. issued an order in CivilCase'o% 0)#0001* to wit?> > > >Bherefore* 1ndin+ the o2"laint to besuIient in for2 and substane andonsiderin+ the neessity to 2aintain thestatus8uolest+raveandirre"arablein >-a. Devies or she2es e2"loyed by* or anyats of the board of diretors* businessassoiates* its oIers or "artners*a2ountin+ to fraud and 2isre"resentationwhih 2ay be detri2ental to the interest ofthe "ubli andNor of the stokholder*"artners* 2e2bers of assoiations oror+ani7ation re+istered with theCo22ission;hanr0blesvirtualawlibrary-b. +ontro'ersies .rising out o? intr.-Pa+e 34E-Jurisdiction-Full/Digestcor@or.te or @.rtners:i@ rel.tions,=et>een .nd .;ong stocA:olders,;e;=ers or .ssoci.tesB =et>een .ny or.ll o? t:e; .nd t:e cor@or.tion*"artnershi" or assoiation of whih they arestokholders* 2e2bers or assoiates*res"etively; and between suh or"oration*"artnershi" or assoiation and the @tateinsofar as it onerns their individualfranhise or ri+ht as suhentity;hanr0blesvirtualawlibrary-. +ontro'ersies in t:e election ora""oint2ent o? directors*trustees* oCcers or 2ana+ers o? suc:cor@or.tions* "artnershi" orassoiations;hanr0blesvirtualawlibrary-d. Petitions of or"orations* "artnershi"s orassoiationstobedelaredinthestateofsus"ensionof "ay2ent inaseswheretheor"oration* "artnershi" or assoiation"ossesses suIient "ro"erty to over all itsdebts but foresees the i2"ossibility of2eetin+ the2 when they res"etive fall dueor in ases where the or"oration*"artnershi"or assoiationhasnosuIientassets to over its liabilities but is under the2ana+e2ent of a Rehabilitation Reeiver or0ana+e2ent Co22ittee reated "ursuant tothis Deree%134ralaw virtualaw libraryR"on the enat2ent of Re"ubli !t 'o%()99 -!he Securities Regulation Code.*eCetive on !u+ust (* 2000* the een .nd .;ong stocA:olders, or=et>een .ny or .ll o? t:e;.ndt:ecor@or.tion o? >:ic: t:ey .restocA:olders%140ralaw virtualaw library0oreover* the tendeven to a ase involvin+ a se8uesteredo2"anynotwithstandin+that the2ao .re inde@endent .nd unrel.tedissues .nd resolution o? eit:er ;.y@roceed inde@endently o? e.c:ot:er. R"holdin+thele+alityof/enedito=sa8uisition of the se8uestered "ro"erty is nota +uarantee that :9PTs 2ana+e2ent ontratwould be u"held* for only the /oard ofDiretors of 'R:DC is 8uali1ed to 2ake suha deter2ination%)iAe>ise, t:e".ndig.n=.y.ncorrectlydenied:ere t:e@rinci@.l c.use o? .ction is t:e reco'eryo? ill-gotten >e.lt:, .s >ell .s .llincidents .rising ?ro;, incident.l to,or relatedtosuchcases .nd3=4 casesfled by those who wish to question orchallenge the commissions acts ororders in such cases.E'idently, @etitionerFs @ro@osedco;@l.int-in-inter'ention is .n ordin.ryci'il c.set:.tdoesnot@ert.intot:e".ndig.n=.y.n. $s t:e "olicitor Gener.lst.ted, t:e co;@l.int is not directed.g.inst %+GG .s .n entity, =ut .g.inst .@ri'.te cor@or.tion, in>:ic: c.se itisnot per se, . %+GG c.se.9n the ases now before the Court* what aresou+ht to be deter2ined are the "ro"riety ofthe eletion of a "arty as a Diretor* and hisauthority to at in that a"aity% @uh issuesshould be e>lusively deter2ined only by theRTC "ursuant to the "ertinent law on.s not ?.t.lin intr.-cor@or.te election contestsRnder @etion 4 of Rule 4 -$lection Contests.of the "nterimRulesof Procedurefor "ntra&CorporateControversies* whihtook eCeton !"ril 1* 2001 -!%0% 'o% 01#2#04#@C.*issued"ursuant toRe"ubli!t 'o% ()99*the trial ourt* within two days fro2 the 1lin+of the o2"laint* 2ay outri+htly dis2iss theo2"laint u"on a onsideration of thealle+ations thereof if the o2"laint is notsuIient infor2andsubstane* or* if theo2"laint is suIient* 2ay order theissuane of su22ons whih shall be served*to+ether with a o"y of the o2"laint* on thedefendant within two days fro2 its issuane%@hould it 1nd the need to hold a hearin+ tolarify s"ei1 fatual 2atters* the trial ourtshall set the ase for hearin+* and thehearin+ shall be o2"leted not later than 15days fro2 the date of the 1rst hearin+% Thetrialourt is 2andated to render a deisionwithin 15 days fro2reei"t of the last"leadin+* or fro2 the date of the lasthearin+* as the ase 2ay be%The C!orretly "ointed out that Rule 4nowherere8uiredthat theRTCatin+asas"eial o22erial ourt should 1rst onduta "re#trialonferene before it ould renderits .s ri@e ?or.d"ressly stated intheresolutionin!%0% 'o% 03#3#03#@Citself*to wit?> > > >R"ontheeCetivityof thisdesi+nation* allo22erial ases"endin+before/ranhes13( and 41 shall be transferred to RTC*/ranh 149* 0akati City* eHce@t t:ose>:ic: .re .lre.dy su=;itted ?ordecision, >:ic:c.sess:.ll =edecided=y t:e .cting @residing > >%Contrary to the assertion of the 'ieto#PC$$+rou"* the fore+oin+ "rovision did not re8uirethe issuane of any s"eial order statin+ thatthe ase was already sub2itted for deision%9t was suIient* +iven the su22ary natureof intra#or"orate ontroversies* es"eiallyeletion ontests* that the trial ourt wasdone ollatin+ all the evidene fro2the"leadin+s -i.e.* "leadin+s* aIdavits*dou2entary andother evideneattahedthereto* and the answers of the witnesses tothe lari1atory 8uestions of the ourt +ivendurin+ the hearin+s.* if dee2ed suIient* orfro2 the lari1atory hearin+s* if onduted%The"ur"oseof thee>e"tionistoobviatethe re"etition of the +atherin+ of evidene% 9tislearfro2@etion9of Rule4thatafterthe ollation of evidene* the only thin+ thatre2ains is for the RTC to render its deisionwithout issuin+ a s"eial order delarin+ thease sub2itted for deision* viz?@etion 9% (ecision% J The Court shall rendera deision within 1fteen -15. days fro2reei"t of the last "leadin+* or fro2 the dateof the last hearin+* as the ase 2ay be% Thedeisionshall be based on the"leadin+s*aIdavits* dou2entaryandotherevideneattahed thereto and the answers of thewitnesses to the lari1atory 8uestions of theourt +iven durin+ the hearin+s%0.Ruling in G.R. No. 101686 .ndG.R. No. 101800>.s@ro@erly.@@liedto +i'il +.se No. 00-10089t was not the"rini"leof res+udicata* aslai2ed by the 'ieto#PC$$ $rou"* thateutive,rder 'o% 1% J:ile ?ull reco'ery is ide.l,t:e %+GG is not @recluded ?ro;entering into . +o;@ro;ise $gree;ent>:ic:ent.ilsreci@roc.l concessionsi?onlytoeH@editereco'erysot:.t t:ere;.ining K?unds, .ssets .nd ot:er@ro@erties ;.y =e used to :.stenn.tion.l econo;ic reco'ery= -3rdB:ARA!@lause* A>eutive,rder 'o% 14#!.% &o =e sure, t:e so-c.lled Leroretention;entionedin"ection23.4o?EHecuti'e #rder No. 1 :.d =een;odiMed to re.d/KJERE$", t:e %residenti.l +o;;issiononGoodGo'ern;ent >.s cre.tedonFe=ru.ry28, 1886=yEHecuti'e#rderNo. 1 to .ssist t:e %resident in t:ereco'ery o? ill-gottenwealth .ccu;ul.ted =y ?or;er%resident Ferdin.nd E. 1.rcos, :isi;;edi.te ?.;ily, rel.ti'es,su=ordin.tes .nd close .ssoci.tesFB>:ic: undou=tedly suggests .de@.rture ?ro; t:e ?or;er go.l o? tot.lrestitution.> > > >&:e .ut:ority o? t:e %+GG to enter into+o;@ro;ise$gree;entsinci'il c.ses.ndtogr.nt i;;unity, under cert.incircu;st.nces, in cri;in.l c.ses is no>settled .nd est.=lis:ed. 9n Republic of thePhilippines and 8ose ,. Campos, 8r. vs.Sandiganbayan, et al. -1)3 @CR! )2G19(9H.* t:is +ourt c.tegoric.lly st.tedt:.t .;ic.=le settle;ents .ndco;@ro;ises.renotonly.llo>ed=ut.ctu.lly encour.ged in ci'il c.ses. $s@eciMc gr.nt o? i;;unity ?ro; cri;in.l@rosecutions >.s .lso sust.ined%9n %enedictovs. %oardof -dministratorsof!elevisionStationsRP., %%C, and"%C -20)@CR!459 G1992H.* t:e+ourt ruledt:.tt:e .ut:ority o? t:e %+GGto '.lidlyenter into+o;@ro;ise$gree;ent ?ort:e @ur@ose o? .'oiding litig.tion or@utting .n end to one .lre.dyco;;enced >.s indis@ut.=le% > > >-italis su""lied.:avin+ been sealed with ourt a""roval* theCo2"ro2ise !+ree2ent has the fore ofres+udicata betweenthe"artiesandshouldbeo2"lied with in aordane with its ter2s%Pursuant thereto* &itoriaC% delosReyes*Cor"orate @eretary of the P,TC* trans2ittedto 0r% 0a+dan+al /% Al2a* then ChiefPresidential 6e+al Counsel andChair2anofPC$$* @tok Certi1ate 'o% 131 dated5anuary 10* 2000* issued in the na2e of theRe"ubliof thePhili""ines* for 4*)2)P,TCshares% Thus* the Co2"ro2ise !+ree2entwas "artly i2"le2ented%144ralawvirtualawlibrary!s a result of the $overn2ent havin+e>"resslyreo+ni7edthat 4)3P,TCsharesbelon+edto!tty% 9lusorio* !tty% 9lusorioandhis +rou" +ained the 2aies of the +rou" in theP:96C,0@!T 2eetin+%For the sa2e reason* the P,TC "ro>ies usedby 'ieto*5r% and6osin toeletthe2selvesres"etivelyas Chair2anandPresident ofP:96C,0@!T; andtheP:96C,0@!T"ro>iesusedby'ieto* 5r% and6osininthe!u+ust31* 2004 P:C eletions to elet the2selvesres"etively as President and !tin+Chair2anof P:C* wereall invalidfor nothavin+ the su""ort of the 2atent of 4)3shares* and of the Re"ubli to the e>tent of4*)2) shares% 9na 2anner of s"eakin+*thedeision of the Court in $%R% 'o% 141)94 and$%R% 'o% 141(04"ro2ul+atedon5une15*2005delaredtheo2"ro2isea+ree2entvalid* and suh validation "ro"erly retroatedtothedateof thee"tions learly stated therein* the"rovision enuniates that a deision andorder issued under the 9nteri2 Rules shall beenforeablei22ediatelyafter therenditionthereof% 9n order to assail thedeision ororder* however* the seond "art of the"rovision s"eaks of an a""eal or "etition thatneeds to be 1led by the "arty onerned% 9nthis a""eal or "etition* arestrainin+order2ust be sou+ht fro2 the a""ellate ourt toen s:.ll =e t.Aen>it:inM?teen3174d.ys?ro;noticeo?t:e decision or Mn.l order o? t:eRegion.l &ri.l +ourt. R"on"ro"er 2otionandthe"ay2entof thefull a2ountof thele+al fee "resribed in Rule 141 as a2endedbefore the e>"iration of the re+le2entary"eriod* theCourt of !""eals2ay+rant anadditional "eriodof1fteen-15.dayswithinwhih to 1le the "etition for review% 'ofurther e>tension shall be +ranted e>e"t forthe 2ost o2"ellin+ reasons and in no aseto e>eed 1fteen -15. days% -A2"hases ours%.> > > >Theissuethat needs tobe resolvedat this"ointiswhetherornot"etitioners"ursuedtheorret re2edyin8uestionin+theRTCDeisions in Civil Case 'os% W#04#091* W#04#092 and W#04#093% Corollary to this iswhether or not the "etitionsfor certiorari 1ledby"etitionersouldhavebeentreatedas"etitionsfor reviewunderRule 43 of the Rules of Court* in aordanewith the "rovisions of the Resolution in !%0%'o% 04#9#0)#@C* suh that "etitioners an beonsidered to have availed the2selves of the"ro"er re2edy in assailin+ the rulin+s of theRTC%Be answer in the ne+ative%Theter2P"etitionQinthethirdandfourth"ara+ra"hsof !%0% 'o% 04#9#0)#@C* annotbe onstrued as to inlude a "etitionfor certiorari under Rule45of theRulesofCourt% The rationale for this lies in theessential diCerenebetweena"etitionforreview under Rule 43 and a "etitionfor certiorari under Rule45of theRulesofCourt%> > > >TheRTCDeisionsinCivil Case'os% W#04#091* W#04#092 and W#04#093 are 1nal ordersthat dis"osed of the whole subeution what has beendeter2ined% !s the RTC was un8uestionablyatin+ within its erise ofsuh > >The Court of !""eals -12th Division. was*therefore* orret indis2issin+the"etitionfor certiorari in C!#$%R% @P 'o% (5()(* whihassailed the RTC Deision in Civil Case 'o% W#04#091% > > >14(ralaw virtualaw libraryThe rule "rovidin+ that a "etition for reviewunder Rule43of the Rules of Court isthe"ro"er 2ode of a""eal in intra#or"orateontroversies* as e2bodied in !% 0% 'o% 04#9#0)#@C* has been in eCet sine ,tober 15*2004% :ene* the1lin+byP,TCandP:C-'ieto $rou". of the "etition for certiorarion0arh 21* 200) -C%!%#$%R% @P 'o% 9(399. wasine>usably i2"ro"er and ineCetual% /yvirtue of its bein+ an e>traordinaryre2edy* certiorari ouldneither re"laenorsubstitute an ade8uate re2edy in theordinaryourseof law* likea""eal indueourse%149 9ndeed* thea""eal underRule43of the Rules of Court would have beenade8uate to reviewand orret even the+rave abuse of disretion i2"uted to theRTC%150ralaw virtualaw library!s a onse8uene of thei2"ro"riety andineCetuality of the re2edy hosen by P,TCand P:C -'ieto $rou".* the TR, and the BP9initially issued by the C! in C%!%#$%R% @P 'o%9(399 did not "revent the i22ediatelye>eutoryharater of thedeisioninCivilCase 'o% 04#1049%6.%etition ?or conte;@t .g.inst *ildner:.d no =.sisThe1lin+by/ildner andher ounsel !tty%0an7anal of the o2"laint for "ereutory nature of the deision rendered inCivilCase 'o% 04#1049* beause the 2atterhad been brou+ht to the C!throu+h thewron+ re2edy%Pa+e 42E-Jurisdiction-Full/DigestConsiderin+that the/ildner $rou"=s learri+ht to an ina2ine the evidene in orderto deter2ine whether the fats were as P,TCand P:C -'ieto $rou". now insist they were%TheCourt2ustres"etthe1ndin+sof theC! sustainin+ the fatual 1ndin+s of the RTCinCivil Case 'o% 04#1049% !s a rule* the1ndin+s of fat by the C! are not reviewedon a""eal* but are bindin+ andonlusive%154 Thereasonfor thishas beenwell stated in 8.R. %lanco v. :uasha? 155ralawvirtualaw libraryTobe+inwith* this Court is not atrier offats% 9t isnot itsfuntiontoe>a2ineanddeter2ine the wei+ht of the evidenesu""ortin+ the assailed deision%9n Philippine -irlines, "nc. vs. Court of-ppeals -2)5@CR!421G199)H.* theCourtheld that fatual 1ndin+s of the Court of!""ealswhiharesu""ortedbysubstantialevidenearebindin+* 1nal andonlusiveu"on the @u"re2e Court% @o also* well#established is the rule that Pfatual 1ndin+sof the Court of !""eals are onlusive on the"arties and arry even 2ore wei+ht when thesaid ourt aIr2s the fatual 1ndin+s of thetrial ourt%Q 0oreover* well entrenhed is the"revailin+"loitation* develo"2ent and e>"loration ofoil%9n199)*6iberty0ines* 9n% han+editsna2etoP:C* delassi1edits shares* anda2endedits"ri2ary"ur"osetobeo2eaholdin+ o2"any% The ownershi" struture ofthese or"orations i2"lies that whoever hadontrol of P,TC neessarily held 100Lontrol of P:96C,0@!T* and in turn whoeverontrolled P:96C,0@!T wielded (1L2aeution* however* thatthe@andi+anbayan a""roved the o2"ro2isea+ree2ent %The result was the redistributionof the P,TC shareholdin+s%

,n !u+ust 2(* 199(* P:96C,0@!Tstokholdersheldaninfor2al +atherin+atthe 0anila $olf Club* !s a onse8uene*other P:96C,0@!T stokholders -na2ely*9lusorio* Eatrina Pone Anrile* Fidelity Far2s*9n%* $reat !sia Anter"rises and 5!E!9nvest2ents Cor"oration. instituted aCo2"laintwitha""liationfor theissuaneof te2"orary restrainin+ order -TR,. and writof "reli2inary inhan+eCo22ission-@AC.assailin+theeletionof theDiretors and,Iers on several +rounds* suh as the lakof suIient notie of the 2eetin+* the lak of8uoru2* and the lak of 8ualifyin+ shares ofthose who were eleted% They 2aintainedthat by reasonof P,TC=s 100Lbene1ialownershi" of P:96C,0@!T* there should havebeen a notie to P,TC* whih* u"on a "ro"erboard 2eetin+* should have a""ointed"ro>ies to attend the P:96C,0@!T@tokholders= 0eetin+% The @AC issued aTR,* and* later on* a BP9 ene"t those whihare already sub2itted for deision* whihases shall be deided by the atin+"residin+well* 55Pa%* 9(0* 9(2* 123Cal%* 340* 49!2% @t%Re"%* 44; Robinson vs. Pennsylvania Fire 9ns%Co%* 3( !tl%* 320* 322* 90 0e%* 3(5;Reed vs. RnionCent% 6ife9ns% Co%* 41Pa%*21* 21Rtah* 295; Dale vs. Continental 9ns%Co%* 31 @%B%* 244* 249* 95 Tenn%* 3(;@u"re2e 6od+e E%P% vs. Wuinn* 29 @outh%*(24* (29* 95 Tenn%* 3(; @u"re2e 6od+eE%P% vs.Wuinn* 29 @outh%* (24* (2)* )( 0iss%*525; /uklen vs. 5ohnson* 49 '%A%* 412* 41)*19 9nd% !""%* 404%.Be have delayed until this 2o2ent theitation of authorities relative to the"ro"osition that venue is not e2"tionof national banks fro2suits in@tate ourts in ounties other than theountyorityinwhihtheassoiationwasloated was a "ersonal "rivile+e whih ouldbe waived was loated was a "ersonal"rivile+e whih ould be waived bya""earin+ in suh brou+ht in anotherounty* but inacourt of thesamedignity*and 2akin+a defensewithoutlai2in+thei22unity +ranted by Con+ress% the ourtsaid?This e>e2"tion of national bankin+assoiations fro2 suits in @tate ourts*established elsewhere than in theounty or ity in whih suhassoiations were loated* was* we donot doubt* "resribed for theonveniene of those institutions* and"revent interru"tionintheir businessthat 2i+ht result fro2their booksbein+ sent to distant ounties inobediene to "roess fro2 @tateourts% -First 'at% /ank of/ethelvs. 'ational Pah8uio8ue /ank*14Ball%* 3(3* 394; Croker vs. 0arine'at% /ank* 101 0ass%* 240%. /ut*without indul+in+inone2"tion fro2 suits in other ourts ofthe sa2e @tate was a "ersonal"rivile+e that it would waive* and*whih* in this ase* the defendant didwaive* and* whih* inthis ase* thedefendant did waive* by a""earin+and2akin+defensewithoutlai2in+the i22unity +ranted by Con+ress% 'oreason an be su++ested why oneourt of a @tate* rather than another*Pa+e 54E-Jurisdiction-Full/Digestboth bein+ of the sa2e di+nity* shouldtakeo+ni7aneof asuit a+ainst anational bank* e>e"t the onvenieneof the bank% !nd this onsiderationsu""orts the view that the e>e2"tionof anational bank fro2suit inany@tateourte>e"toneoftheountyor ity in whih it is loated is a"ersonal "rivile+e* whih it ould lai2or not* as it dee2ed neessary%9ntheaseof $=parte @hollenber+er -94R%@%* 349.* the ourt said?The!t of Con+ress "resribin+the"lae where a "erson 2ay be sued isnot one aCetin+ the +enerala2"le* are the "rohibition a+ainst2ulti"liity of ations* the rules a+ainstdivision of ations into "arts* and the +eneral"rini"le that i+eny%Theonditions foundinanationfor theonde2nationof real estateby arailroado2"any2i+ht and+enerallywouldbesodiCerent that the a""liation of the"rovisions of setion 3)) "er2ittin+ thevenue to be laid in any "rovine where anypart of the land lies would work a very +reathardshi" to 2any defendants in suh anation% To hold that a railroad o2"anydesirin+tobuildalinefro2 9loos 'orte to/atan+as* throu+h substantially the whole ofthe 9sland of 6u7on* 2i+ht lay the venue in/atan+as* it bein+ a "rovine in whih a "artof thelanddesribedintheo2"laintwasloated* wouldbetore8uireall the"artiesdefendant in 9loos 'orte and intervenin+"rovines* with their witnesses* to +o to/atan+as* with all the inonveniene ande>"ense whih the :eret:el.ndin'ol'edint:esuit, orso;e@.rt t:ereo?, isloc.ted, donot .Nectt:e