Category: LATEST SUPREME COURT CASES


CASE 2011-0237: OFFICE OF THE DEPUTY OMBUDSMAN FOR LUZON, HONORABLE VICTOR C. FERNANDEZ, IN HIS CAPACITY AS DEPUTY OMBUDSMAN FOR LUZON, AND THE GENERAL INVESTIGATION BUREAU-A, REPRESENTED BY MARIA OLIVIA ELENA A. ROXAS VS. JESUS D. FRANCISCO, SR. (G.R. NO. 172553, 14 DECEMBER 2011, LEONARDO – DE CASTRO, J.) SUBJECT/S: MOOT AND ACADEMIC PRINCIPLE; PREVENTIVE SUSPENSION (OMBUDSMAN VS. FERNANDEZ)

 

============================

 

 

DISPOSITIVE:

 

WHEREFORE, the Court hereby DENIES the instant petition for mootness.  No costs. 

 

SO ORDERED.

 

 

============================

 

Republic of the Philippines

Supreme Court

Manila

 

 

FIRST DIVISION

 

OFFICE OF THE DEPUTY OMBUDSMAN FOR LUZON, HONORABLE VICTOR C. FERNANDEZ, in his capacity as Deputy Ombudsman for Luzon, and THE GENERAL INVESTIGATION BUREAU-A, Represented by MARIA OLIVIA ELENA A. ROXAS,

                     Petitioners,

 

 

–  versus  –

 

 

JESUS D. FRANCISCO, SR.,

                    Respondent.

  G.R. No. 172553

 

 

Present:

 

CORONA, C.J.,

     Chairperson,     

LEONARDO-DE CASTRO,

BERSAMIN,

VILLARAMA, JR., and

MENDOZA,* JJ.

 

 

Promulgated:

 

 

December 14, 2011

x- – – – – – – – – – – – – – – – – – – – – – – – – – – – –  – – – – – – – – – – – – – – – – – – – – – -x

 

 

RESOLUTION

 

 

LEONARDO – DE CASTRO, J.:

 

          This Petition for Review on Certiorari[1][1] under Rule 45 of the Rules of Court seeks the reversal of the Decision[2][2] dated December 23, 2005 and the Resolution[3][3] dated May 3, 2006 of the Court of Appeals in CA-G.R. SP No. 90567.  The decision of the appellate court reversed the Order[4][4] dated May 30, 2005 of the Office of the Deputy Ombudsman forLuzon in Administrative Case No. OMB-C-A-05-0032-A, while its resolution denied the motion for reconsideration of herein petitioners.  

 

          We quote hereunder the preliminary facts of the case, as succinctly stated in the Decision of the Court of Appeals dated December 23, 2005:

 

          Sometime in November 1998, Ligorio Naval filed a complaint before the Office of the Ombudsman, accusing Jessie Castillo, the mayor of the Municipality of Bacoor, Cavite, among others, of violating Section[s] 3(e), (g) and (j) of the Anti-Graft and Corrupt Practices Act, in relation to the award of the construction of the municipal building of Bacoor, Cavite, worth more than 9 Million Pesos, to St. Martha’s Trading and General Contractors.  Naval alleged that the latter was not qualified for the award; its license had expired at the time the contract was signed, and was classified as belonging to Category “C,” hence, may only undertake projects worth 3 Million Pesos or lower.  The complaint was docketed as OMB-1-98-2365.

 

            Castillo submitted certifications to the effect that the contractor was not a holder of an expired license, and was classified as a Category “A” contractor.

 

            On 29 April 1999, the Ombudsman ruled that Naval’s allegation of lack of qualification of the contractor has been satisfactorily controverted by Castillo, and dismissed the complaint.  Naval moved for reconsideration, which was denied on 27 August 1999.

 

            In a series of communications with Deputy Ombudsman Margarito P. Gervacio, Jr., Naval insinuated that his evidence [was] not considered and the complaint was dismissed in exchange for millions of pesos.  Ombudsman Gervacio relayed the said allegations to Ombudsman Aniano Desierto, who ordered a reevaluation of the 29 April 1999 decision.

 

            In a Memorandum dated 30 May 2000, Graft Investigation and Prosecution Officer II, Julieta Calderon, recommended that OMB-1-98-2365 be revived, re-docketed, and be subjected to a further preliminary investigation, with the inclusion of additional respondents.  On 30 September 2000, Ombudsman Gervacio approved the said memorandum.  Thereafter, the Fact-Finding and Intelligence Bureau of the Ombudsman executed a complaint-affidavit for gross negligence and conduct prejudicial to the interest of the service, against 5 municipal officers, including [Jesus Francisco], which was docketed as OMB-C-A-05-0032-A.[5][5] (Emphases ours.)

 

 

The respondents specifically named in Administrative Case No. OMB-C-A-05-0032-A were Saturnino F. Enriquez, Salome O. Esagunde, Federico Aquino, Eleuterio Ulatan and herein respondent Jesus D. Francisco, Sr.,[6][6] all of whom were members of the Prequalification, Bids and Awards Committee (PBAC) of theMunicipality ofBacoor,Cavite.  Francisco was then the Municipal Planning and Development Officer of theMunicipality ofBacoor,Cavite.

 

The complaint stated, among others, that when the Municipalityof Bacoorconducted its prequalification of documents and bidding, St. Martha’s Trading and General Contractor’s license was not renewed.  Furthermore, the said contractor was allegedly not qualified to undertake the construction of the P9.5 million project as it can only enter into a contract for a project that is worth P3 million or less.  The complaint likewise sought to place the aforementioned individuals under preventive suspension pending the investigation of the case.[7][7] 

 

On May 30, 2005, Director Joaquin F. Salazar of the Office of the Deputy Ombudsman for Luzonissued an Order[8][8] preventively suspending the above PBAC members.  The same was approved by Deputy Ombudsman for Luzon Victor C. Fernandez on May 31, 2005.[9][9]  The Order decreed thus:

 

WHEREFORE, in accordance with Section 24, R.A. No. 6770 and Section 9, Rule III of Administrative Order No. 07, respondents Saturnino F. Enriquez, Salome Esagunde, Jesus D. Francisco, Sr., Federico Aquino, and Eleuterio Ulatan, all municipal employees of Bacoor, Cavite are hereby PREVENTIVELY SUSPENDED during the pendency of this case until its termination, but not to exceed the total period of six (6) months without pay.  In case of delay in the disposition of the case due to the fault, negligence or any cause attributable to the respondents, the period of such delay shall not be counted in computing the period of the preventive suspension.

 

In accordance with Section 27, par. (1), R.A. No. 6770, this Order is immediately executory.  Notwithstanding any motion, appeal or petition that may be filed by the respondents seeking relief from this Order, unless otherwise ordered by this Office or by any court of competent jurisdiction, the implementation of this Order shall not be interrupted within the period prescribed.[10][10] (Emphasis ours.)

 

  

          Francisco received the above Order on July 1, 2005.[11][11]  Consequently, on July 22, 2005, he filed before the Court of Appeals a Petition for Certiorari with Application for Temporary Restraining Order and/or Writ of Preliminary Injunction.  He argued that the Office of the Deputy Ombudsman for Luzon committed grave abuse of discretion amounting to lack or excess of jurisdiction when it ordered his preventive suspension since the transactions questioned in the case had already been passed upon in OMB-1-98-2365 entitled, Naval v. Castillo, which was dismissed for lack of merit.  Furthermore, Francisco averred that the imposition of preventive suspension was not justified given that: (1) he was charged with gross negligence and conduct prejudicial to the interest of the service, not dishonesty, oppression, grave misconduct or neglect in the performance of duty, as required by law; (2) it was not shown that he caused prejudice to the government that would warrant his removal from office; and (3) his stay in office would not prejudice the case filed against him as the documentary evidence therein were not in his possession.[12][12]  

 

          On December 2, 2005, Francisco moved for the early resolution of his petition, reiterating his prayer for the issuance of a temporary restraining order and/or a writ of preliminary injunction. 

 

On December 23, 2005, the Court of Appeals rendered its assailed Decision, finding in favor of Francisco.  Thus, said the Court of Appeals:

 

          The petition has merit.

 

            Francisco argues that while he may not have been charged in OMB-1-98-2365, which was dismissed, still the transaction involved therein is the same transaction for which he was charged in OMB-C-A-05-0032-A, thus barred under the principle of res judicata.

 

            We agree.  The respondents in OMB-C-A-05-0032-A were administratively charged for gross negligence and conduct prejudicial to the interest of the service when they awarded the contract to construct their municipal hall to St. Martha’s Contractor, allegedly an unqualified contractor, because both at the time of the bidding and at the time of contract signing, the contractor had an expired license.  Moreover, St. Martha’s Contractor belongs to “small B” category, which means it cannot enter into a contract for a project worth 3 Million Pesos or less.  Therefore, the respondents should have disqualified the said contractor.

 

The said allegation was the exact matter decided by the Ombudsman in OMB-1-98-2365, to wit:

 

            “x x x x

 

            Contrary to the allegation of the complainant that the awardee, St. Martha’s Trading and General Contractor was not qualified to undertake the project being classified under “Category C”, respondent submitted a xerox copy of a letter dated 05 January 1999 of Jaime Martinez, OIC-Engineer DPWH, Trece Martirez City stating that St. Martha’s Trading & General Contractor is classified under “Category A”.  He likewise submitted a certification dated 06 April 1999 issued by Carolina C. Saunar, Supervising TIDS of the Philippine Contractors Accreditation Board to the effect that St. Martha’s Trading & General Contractor is a holder of Contractor’s License No. 24109 originally issued on 18 December 1997 with Category “A” and classification of General Building and General Engineering. x x x.

 

            After a thorough study and evaluation of the records of the case as well as after the conduct of an actual ocular investigation, this Office finds the defenses interposed by the respondent to be meritorious.”

 

            A judgment bars a subsequent action, with the concurrence of the following requirements: (a) the first judgment must be a final one; (b) the court rendering the judgment must have jurisdiction over the subject matter and over the parties; (c) it must be a judgment or order on the merits; and (d) there must be between the two cases, identity of parties, identity of subject matter and identity of action.

 

            The order of dismissal in OMB-1-98-2365 should operate as a bar to OMB-C-A-05-0032-A.  There is no question that the order dismissing the charges in OMB-1-98-2365, is a judgment on the merits, by a court having jurisdiction over the subject matter and over the parties, and had attained finality.  There is, between OMB-1-98-2365 and OMB-C-A-05-0032-A, an identity of parties, an identity of subject matter and an identity of action.  While it may be argued that there was no absolute identity of parties, a shared identity of interest by the parties in both cases is sufficient to invoke the coverage of the principle.  The substitution of parties will not remove the case from the doctrine of res judicata; otherwise, the parties could renew the litigation by the simple expedient of substitution of parties.

 

            WHEREFORE, the petition is hereby GRANTED.  The 30 May 2005 order of the Office of the Ombudsman in OMB-C-A-05-0032-A is hereby SET ASIDE.[13][13]

 

          On January 18, 2006, the Office of the Deputy Ombudsman for Luzonfiled a Motion for Reconsideration[14][14] on the above decision, but the same was denied in the assailed Resolution dated May 3, 2006.

 

          On June 26, 2006, the Office of the Deputy Ombudsman forLuzonand the General Investigation Bureau-A of the said office, through the OSG (petitioners), filed the instant petition, praying for the reversal of the adverse rulings of the Court of Appeals.   

 

          Respondent filed his Comment[15][15] on January 8, 2007 while petitioners filed a Reply[16][16] on March 19, 2007.  In a Resolution[17][17] dated April 23, 2007, the Court directed the parties to submit their respective memoranda.  The OSG, in a Manifestation and Motion,[18][18] adopted its Petition and Reply as its Memorandum in the instant case.  In turn, respondent filed his Memorandum[19][19] on September 7, 2007.

 

          Upon elevation of the records to this Court, it became apparent that the Office of the Deputy Ombudsman for Luzonissued a Joint Resolution,[20][20] dismissing Administrative Case No. OMB-C-A-05-0032-A for lack of probable cause.  The said resolution was approved by Acting Ombudsman Orlando C. Casimiro on February 28, 2008.[21][21]   

 

          The Court finds that the petition at bar, which seeks the reinstatement of the Order of preventive suspension dated May 30, 2005 of the Office of the Deputy Ombudsman for Luzon, has been rendered moot.  In view of the above-stated supervening event that occurred after the filing of the instant petition, the same has ceased to present a justiciable controversy.

 

          In Ombudsman v. Peliño,[22][22] the Court clarified that “[p]reventive suspension is merely a preventive measure, a preliminary step in an administrative investigation; the purpose thereof is to prevent the accused from using his position and the powers and prerogatives of his office to influence potential witnesses or tamper with records which may be vital in the prosecution of the case against him.”

 

          Section 24 of Republic Act No. 6770 expressly provides for the power of the Ombudsman or his Deputy to place a public officer or employee under preventive suspension, to wit:

 

SECTION 24. Preventive Suspension. — The Ombudsman or his Deputy may preventively suspend any officer or employee under his authority pending an investigation, if in his judgment the evidence of guilt is strong, and (a) the charge against such officer or employee involves dishonesty, oppression or grave misconduct or neglect in the performance of duty; (b) the charges would warrant removal from the service; or (c) the respondent’s continued stay in office may prejudice the case filed against him.

 

The preventive suspension shall continue until the case is terminated by the Office of the Ombudsman but not more than six  months, without pay, except when the delay in the disposition of the case by the Office of the Ombudsman is due to the fault, negligence or petition of the respondent, in which case the period of such delay shall not be counted in computing the period of suspension herein provided. (Emphasis ours.)

 

 

          Similarly, Section 9, Rule III of the Rules of Procedure of the Ombudsman[23][23] in administrative cases recites:

 

SECTION 9. Preventive Suspension. – Pending investigation, the respondent may be preventively suspended without pay if, in the judgment of the Ombudsman or his proper deputy, the evidence of guilt is strong and (a) the charge against such officer or employee involves dishonesty, oppression or gross misconduct, or gross neglect in the performance of duty; or (b) the charge would warrant removal from the service; or (c) the respondent’s continued stay in office may prejudice the just, fair and independent disposition of the case filed against him.

 

The preventive suspension shall continue until the case is terminated; however, the total period of preventive suspension should not exceed six months.  Nevertheless, when the delay in the disposition of the case is due to the fault, negligence or any cause attributable to the respondent, the period of such delay shall not be counted in computing the period of suspension herein provided. (Emphasis ours.)

 

 

To recall in the instant case, the Order of the Office of the Deputy Ombudsman for Luzondated May 30, 2005, which placed the respondents in Administrative Case No. OMB-C-A-05-0032-A under preventive suspension, was received by respondent Francisco on July 1, 2005.  Instead of filing a motion for reconsideration[24][24] thereon, Francisco filed before the Court of Appeals a Petition for Certiorari with Application for Temporary Restraining Order and/or Writ of Preliminary Injunction.  The appellate court, however, did not issue a temporary restraining order or a preliminary injunction.  Accordingly, the six-month period of the preventive suspension was not interrupted.  Having received notice of the Order on July 1, 2005, the period of suspension lapsed on December 28, 2005.[25][25]       

 

Of greater importance, however, is the fact that Administrative Case No. OMB-C-A-05-0032-A was already terminated by the Office of the Deputy Ombudsman forLuzonwhen it dismissed the case in a Joint Resolution, approved by the Acting Ombudsman on February 28, 2008.  Consequently, the Order of the Office of the Deputy Ombudsman forLuzonplacing Francisco and his co-respondents under preventive suspension in Administrative Case No. OMB-C-A-05-0032-A has already lost its significance.               

 

          Barbieto v. Court of Appeals[26][26] reiterates that “[t]ime and again, courts have refrained from even expressing an opinion in a case where the issues have become moot and academic, there being no more justiciable controversy to speak of, so that a determination thereof would be of no practical use or value.”

 

          While the Court is mindful of the principle that “[t]he ‘moot and academic’ principle is not a magical formula that can automatically dissuade the courts in resolving a case.  Courts will decide cases, otherwise moot and academic, if:  first, there is a grave violation of the Constitution; second, the exceptional character of the situation and the paramount public interest is involved; third, when the constitutional issue raised requires formulation of controlling principles to guide the bench, the bar and the public; and fourth, the case is capable of repetition yet evading review,”[27][27] the above exceptions do not find application in the instant case.

 

WHEREFORE, the Court hereby DENIES the instant petition for mootness.  No costs. 

 

SO ORDERED.

 

 

 

TERESITA J. LEONARDO-DE CASTRO

  Associate Justice

 

 

WE CONCUR:

 

 

 

 

RENATO C. CORONA

Chief Justice

Chairperson

 

 

 

 

 

LUCAS P. BERSAMIN

Associate Justice

 MARTIN S. VILLARAMA, JR.

Associate Justice

 

 

 

 

 

 

 

 

 

 

 

 

JOSE CATRAL MENDOZA

Associate Justice

 

 

 

CERTIFICATION

Pursuant to Section 13, Article VIII of the Constitution, I certify that the conclusions in the above Resolution had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division.

 

 

RENATO C. CORONA

Chief Justice

 

 


 


*               Per Raffle dated December 14, 2011.

[1][1]           Rollo, pp. 9-29.

[2][2]          Id. at 75-81; penned by Associate Justice Santiago Javier Ranada with Associate Justices Mariano C. del Castillo (now a member of this Court) and Mario L. Guariña III, concurring.

[3][3]          Id. at 70-73.

[4][4]           Records, pp. 23-25; penned by Director Joaquin F. Salazar and approved by Deputy Ombudsman for Luzon Victor C. Fernandez.

[5][5]           Rollo, pp. 76-77.

[6][6]           Records, p. 1.

[7][7]          Id. at 3-4.

[8][8]          Id. at 23-25; penned by Director Joaquin F. Salazar.

[9][9]          Id. at 25.

[10][10]        Id. at 24.

[11][11]         CA rollo, p. 36.

[12][12]        Id. at 13-14.

[13][13]         Rollo, pp. 78-80.

[14][14]         CA rollo, pp. 69-78.

[15][15]         Rollo, pp. 57-64.

[16][16]        Id. at 82-94.

[17][17]        Id. at 95-96.

[18][18]        Id. at 98-100.

[19][19]        Id. at 104-119.

[20][20]         Records, pp. 73-80.

[21][21]        Id. at 80.

[22][22]         G.R. No. 179261, April 18, 2008, 552 SCRA 203, 216.

[23][23]         Ombudsman Administrative Order No. 7 dated April 10, 1990, as amended by Administrative Order No. 17 dated September 15, 2003.

[24][24]         Section 8, Rule III of the Rules of Procedure of the Office of the Ombudsman states that:

SEC. 8. Motion for Reconsideration or Reinvestigation; Grounds– Whenever allowable, a motion for reconsideration or reinvestigation may only be entertained if filed within ten (10) days from receipt of the decision or order by the party on the basis of any of the following grounds:

a) New evidence had been discovered which materially affects the order, directive or decision;

b) Grave errors of facts or laws or serious irregularities have been committed prejudicial to the interest of the movant.

Only one motion for reconsideration or reinvestigation shall be allowed, and the Hearing Officer shall resolve the same within five (5) days from the date of submission for resolution.

[25][25]         See Radaza v. Court of Appeals (G.R. No. 177135, October 15, 2008, 569 SCRA 223, 237) where the Court explained that:

“In ascertaining the last day of the period of suspension, one (1) month is to be treated as equivalent to thirty (30) days, such that six (6) months is equal to one hundred eighty (180) days.  x x x. This is in line with the provisions of Article 13 of the New Civil Code, which provides:

ART. 13. When the law speaks of years, months, days or nights, it shall be understood that years are of three hundred sixty-five days each; months, of thirty days; days of twenty[-]four hours; and nights from sunset to sunrise.

If months are designated by their name, they shall be computed by the number of days which they respectively have.

In computing a period, the first day shall be excluded, and the last day included.”

[26][26]         G.R. No. 184645, October 30, 2009, 604 SCRA 825, 840.

[27][27]         David v. Macapagal-Arroyo, G.R. No. 171369, May 3, 2006, 489 SCRA 160, 214-215.

CASE 2011-0236: RAMONA RAMOS and THE ESTATE OF LUIS T. RAMOS VS. PHILIPPINE NATIONAL BANK, OPAL PORTFOLIO INVESTMENTS (SPV-AMC), INC. and GOLDEN DRAGON STAR EQUITIES, INC. (G.R. NO. 178218, 14 DECEMBER 2011, LEONARDO – DE CASTRO, J.) SUBJECT: BLANKET OR DRAGNET CLAUSE IN MORTGAGE; INTENTION OF PARTIES IN A CONTRACT; RAISING ISSUE FOR THE FIRST TIME ON APPEAL, EXCEPTIONS.  (BRIEF TITLE: RAMOS VS. PNB)

 

 

================

 

 

 

DISPOSITIVE

 

 

WHEREFORE, the petition is DENIED.  The Decision dated November 8, 2006 and the Resolution dated May 28, 2007 of the Court of Appeals in CA-G.R. CV No. 64360 are hereby AFFIRMED.  Costs against petitioners.

 

SO ORDERED.

 

 

================

 

 

SUBJECT/DOCTRINE/DIGEST:

 

 

PETITIONER IN THEIR COMPLAINT AT RTC ALLEGED THAT THEY HAVE ALREADY PAID THEIR LOANS TO PNB AND THAT THEY ARE ENTITLED TO RELEASE OF MORTGAGE. WHEN C.A. RULED ADVERSELY, PETITIONER IN THEIR MOTION FOR RECON RAISED A NEW POINT: THAT THEIR QUEDAN LOAN WAS NOT COVERED BY THE MORTGAGE. IS RAISING A NEW ISSUE AT C.A. PROPER?

 

 

NO. THE GENERAL RULE IS THAT ISSUES RAISED FOR THE FIRST TIME ON APPEAL AND NOT RAISED IN THE PROCEEDINGS IN THE LOWER COURT ARE BARRED BY ESTOPPEL.  POINTS OF LAW, THEORIES, ISSUES, AND ARGUMENTS NOT BROUGHT TO THE ATTENTION OF THE TRIAL COURT OUGHT NOT TO BE CONSIDERED BY A REVIEWING COURT, AS THESE CANNOT BE RAISED FOR THE FIRST TIME ON APPEAL.  TO CONSIDER THE ALLEGED FACTS AND ARGUMENTS RAISED BELATEDLY WOULD AMOUNT TO TRAMPLING ON THE BASIC PRINCIPLES OF FAIR PLAY, JUSTICE, AND DUE PROCESS.[1][38]     

 

 

 

After due consideration of the issues raised, we are compelled to deny the petition.

To begin with, we note that, indeed, petitioners are presently raising issues that were neither invoked nor discussed before the RTC and the main proceedings before the Court of Appeals.  The very issues laid down by petitioners for our consideration were first brought up only in their motion for reconsideration of the Court of Appeals Decision dated November 8, 2006. 

In their complaint before the RTC and in their reply to PNB’s appeal to the Court of Appeals, petitioners relied on the theory that they have already settled all of their loan obligations with PNB, including their sugar quedan financing loan, such that they were entitled to the release of the real estate mortgage that secured the said obligations.  When the Court of Appeals rendered the assailed decision, petitioners foisted a new argument in their motion for reconsideration that the parties did not intend for the sugar quedan financing loan to be covered by the real estate mortgage.  Before this Court, petitioners are now reiterating and expounding on their argument that their sugar quedan financing loan was beyond the ambit of the previously executed real estate mortgage.  We rule that such a change in petitioners’ theory may not be allowed at such late a stage in the case.

The general rule is that issues raised for the first time on appeal and not raised in the proceedings in the lower court are barred by estoppel.  Points of law, theories, issues, and arguments not brought to the attention of the trial court ought not to be considered by a reviewing court, as these cannot be raised for the first time on appeal.  To consider the alleged facts and arguments raised belatedly would amount to trampling on the basic principles of fair play, justice, and due process.[2][38]      

===================

 

 

IS THERE AN EXCEPTION TO SUCH RULE?

 

 

YES.

 

 

FIRST, IF IT DOES NOT RESULT IN A MOCKERY OF THE RULES OF FAIR PLAY.

 

 

SECOND, WHEN THE FACTUAL BASES THEREOF WOULD NOT REQUIRE PRESENTATION OF ANY FURTHER EVIDENCE BY THE ADVERSE PARTY IN ORDER TO ENABLE IT TO PROPERLY MEET THE ISSUE RAISED IN THE NEW THEORY. 

 

Jurisprudence, nonetheless, provides for certain exceptions to the above rule.  First, it is a settled rule that the issue of jurisdiction may be raised at any time, even on appeal, provided that its application does not result in a mockery of the tenets of fair play.  Second, as held in Lianga Lumber Company v. Lianga Timber Co., Inc.,[3][39] in the interest of justice and within the sound discretion of the appellate court, a party may change his legal theory on appeal only when the factual bases thereof would not require presentation of any further evidence by the adverse party in order to enable it to properly meet the issue raised in the new theory. 

None of the above exceptions, however, applies to the instant case.  As regards the first exception, the issue of jurisdiction was never raised at any point in this case.  Anent the second exception, the Court finds that the application of the same in the case would be improper, as further evidence is needed in order to answer and/or refute the issue raised in petitioners’ new theory.

================

 

WHY WILL THE COURT NOT ENTERTAIN SUCH NEW THEORY OF PETITIONER?

 

 

BECAUSE TO DO SO WOULD GRAVELY OFFEND THE RIGHTS OF PNB TO DUE PROCESS.

 

To recapitulate, petitioners are now claiming that the sugar quedan financing loan it availed from PNB was not obtained in reliance on the real estate mortgage.  Petitioners even insist that the credit line agreement, the promissory notes and the contracts of pledge entered into by the parties were silent as to the applicability thereto of the real estate mortgage.  Otherwise stated, petitioners are harping on the intention of the parties vis-à-vis the security arrangement for the credit line agreement and the availments thereof constituting the sugar quedan financing loan.  The impropriety of the petitioners’ posturing is further confounded by the fact that the credit line agreement under PNB’s sugar quedan financing program and the availments thereto were entered into by Luis Ramos and PNB as far back as the year 1989.  Petitioners’ new theory, on the other hand, was only raised much later on the spouses’ motion for reconsideration of the Court of Appeals decision dated November 8, 2006, or after a period of more or less seventeen years since the execution of the credit line agreement.  The Court, therefore, finds itself unable to give credit to the new theory proffered by petitioners since to do so would gravely offend the rights of PNB to due process. 

====================

 

WHAT DOES THE REAL ESTATE MORTGAGE PROVIDE?

 

 

THAT IT SHALL STAND AS SECURITY FOR ANY “SUBSEQUENT PROMISSORY NOTE OR NOTES EITHER AS A RENEWAL OF THE FORMER NOTE, AS AN EXTENSION THEREOF, OR AS A NEW LOAN, OR IS GIVEN ANY OTHER KIND OF ACCOMMODATIONS SUCH AS OVERDRAFTS, LETTERS OF CREDIT, ACCEPTANCES AND BILLS OF EXCHANGE, RELEASES OF IMPORT SHIPMENTS ON TRUST RECEIPTS, ETC.”  THE SAME REAL ESTATE MORTGAGE LIKEWISE EXPRESSLY COVERED “ANY AND ALL OTHER OBLIGATIONS OF THE MORTGAGOR TO THE MORTGAGEE OF WHATEVER KIND AND NATURE WHETHER SUCH OBLIGATIONS HAVE BEEN CONTRACTED BEFORE, DURING OR AFTER THE CONSTITUTION OF THIS MORTGAGE.”

 

 

=================

 

 

IS SUGAR QUEDAN LOANS COVERED BY THE MORTGAGE?

 

 

YES. BECAUSE THE CONTRACT PLAINLY STATES THAT ALL SUBSEQUENT LOANS SHALL BE CONVERED BY THE REAL ESTATE MORTGAGE. THE CONTRACT IS CLEAR AND THE COURT MUST APPLY  IT LITERALLY. ONLY WHEN THE CONTRACT IS VAGUE WHEN THE COURT MUST INTERPRET IT.

 

Even if the Court were willing to overlook petitioners’ procedural misstep on appeal, their belatedly proffered theory still fails to convince us that the Court of Appeals committed any reversible error in its resolution of the present case.

According to petitioners, their case requires an application of Article 1371 of the Civil Code, which provides that “in order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be principally considered.”  To their mind, the mere fact that the 1989 credit line agreement, the promissory notes and the contracts of pledge executed in relation to the sugar quedan financing loan contained no reference to the real estate mortgage is sufficient proof that the parties did not intend the real estate mortgage to secure the sugar quedan financing loan, but only the agricultural crop loans. The Court finds that it cannot uphold this proposition.

In Prisma Construction & Development Corporation v. Menchavez,[4][40] we discussed the settled principles that:

Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. When the terms of a contract are clear and leave no doubt as to the intention of the contracting parties, the literal meaning of its stipulations governs.  In such cases, courts have no authority to alter the contract by construction or to make a new contract for the parties; a court’s duty is confined to the interpretation of the contract the parties made for themselves without regard to its wisdom or folly, as the court cannot supply material stipulations or read into the contract words the contract does not contain.  It is only when the contract is vague and ambiguous that courts are permitted to resort to the interpretation of its terms to determine the parties’ intent.[5][41]

Here, it cannot be denied that the real estate mortgage executed by the parties provided that it shall stand as security for any “subsequent promissory note or notes either as a renewal of the former note, as an extension thereof, or as a new loan, or is given any other kind of accommodations such as overdrafts, letters of credit, acceptances and bills of exchange, releases of import shipments on Trust Receipts, etc.”  The same real estate mortgage likewise expressly covered “any and all other obligations of the Mortgagor to the Mortgagee of whatever kind and nature whether such obligations have been contracted before, during or after the constitution of this mortgage.”  Thus, from the clear and unambiguous terms of the mortgage contract, the same has application even to future loans and obligations of the mortgagor of any kind, not only agricultural crop loans.

====================

 

 

SUCH CLAUSE IN THE MORTGAGE (THAT IT SHALL  STAND AS SECURITY FOR ANY SUBSEQUENT LOAN) IS A “BLANKET CLAUSE” OR “DRAGNET CLAUSE”. IS SUCH CLAUSE VALID?

 

 

YES. A DRAGNET CLASUE  IS RECOGNIZED IN OUR JURISPRUDENCE.

Such a “blanket clause” or “dragnet clause” in mortgage contracts has long been recognized in our jurisprudence.  Thus, in another case, we held:

As a general rule, a mortgage liability is usually limited to the amount mentioned in the contract.  However, the amounts named as consideration in a contract of mortgage do not limit the amount for which the mortgage may stand as security if, from the four corners of the instrument, the intent to secure future and other indebtedness can be gathered. This stipulation is valid and binding between the parties and is known as the “blanket mortgage clause” (also known as the “dragnet clause).”

In the present case, the mortgage contract indisputably provides that the subject properties serve as security, not only for the payment of the subject loan, but also for “such other loans or advances already obtained, or still to be obtained.” The cross-collateral stipulation in the mortgage contract between the parties is thus simply a variety of a dragnet clause. After agreeing to such stipulation, the petitioners cannot insist that the subject properties be released from mortgage since the security covers not only the subject loan but the two other loans as well.[6][42]  (Emphases supplied.)

XXXXXXXXXXXXXXXXXXXXXXXXX

 

 

SUPPOSE THERE IS A DRAGNET CLAUSE STATING THAT ALL SUBSEQUENT LOANS WILL BE COVERED BY THE REAL ESTATE MORTGAGE. A SUBSEQUENT LOAN WAS AVAILED. BUT A SPECIAL SECURITY WAS GIVEN FOR SUCH LOAN. WILL THE DRAGNET CLAUSE STILL APPLY?

 

 

 

YES ACCORDING TO THE PRUDENTIAL BANK CASE STATED BELOW. BUT THE SPECIAL SECURITY MUST BE APPLIED FIRST. IF DEFICIENT THEN THE REAL ESTATE MORTGAGE SHALL APPLY.

 

 

Moreover, petitioners’ reliance on Prudential Bank v. Alviar[7][43] is sorely misplaced.  In Prudential, the fact that another security was given for subsequent loans did not remove such loans from the ambit of the dragnet clause in a previous real estate mortgage contract.  However, it was held in Prudential that the special security for subsequent loans must first be exhausted before the creditor may foreclose on the real estate mortgage.  In other words, the creditor is allowed to hold on to the previous security (the real estate mortgage) in case of deficiency after resort to the special security given for the subsequent loans.  Verily, even under the Prudential ruling cited by petitioners, they are not entitled to the release of the real estate mortgage and the titles to the properties mentioned therein.

XXXXXXXXXXXXX

 

 

PETITIONER ARGUES THAT IT HAS WRITTEN PNB AUTHORIZING IT TO DISPOSE OF THE SUGAR QUEDAN. WILL THIS GRANT OF AUTHORITY RELEASE PETITIONER FROM ITS OBLIGATION?

 

 

NO. IT IS NOT THE SALE OF THE SUGAR QUEDAN THAT EXTINGUISHES  PETITIONER’S LOAN OBLIGATION. WHAT IS NECESSARY IS FORECLOSURE. THE LAW REQUIRES FORECLOSURE IN ORDER TO ALLOW A TRANSFER OF TITLE OF THE GOODS GIVEN BY WAY OF SECURITY FROM ITS PLEDGOR, AND BEFORE ANY SUCH FORECLOSURE, THE PLEDGOR, NOT THE PLEDGEE, IS THE OWNER OF THE GOODS.

 

Ultimately, we likewise find no reason to overturn the assailed ruling of the Court of Appeals that the contract of pledge between petitioners and PNB was not terminated by the Authorization letter issued by Luis Ramos in favor of PNB.  The status of PNB as a pledgee of the sugar quedans involved in this case had long been confirmed by the Court in its Decision dated July 9, 1998 in Philippine National Bank v. Sayo, Jr.[8][44] and the same is neither disputed in the instant case.  We reiterate our ruling in Sayo that:

The creditor, in a contract of real security, like pledge, cannot appropriate without foreclosure the things given by way of pledge.  Any stipulation to the contrary, termed pactum commissorio, is null and void.  The law requires foreclosure in order to allow a transfer of title of the good given by way of security from its pledgor, and before any such foreclosure, the pledgor, not the pledgee, is the owner of the goods. x x x.[9][45]

        A close reading of the Authorization executed by Luis Ramos reveals that it was nothing more than a letter that gave PNB the authority to dispose of and sell the sugar quedans after the maturity date thereof.  As held by the Court of Appeals, the said grant of authority on the part of PNB is a standard condition in a contract of pledge, in accordance with the provisions of Article 2087 of the Civil Code that “it is also of the essence of these contracts that when the principal obligation becomes due, the things in which the pledge or mortgage consists may be alienated for the payment to the creditor.”  More importantly, Article 2115 of the Civil Code expressly provides that the sale of the thing pledged shall extinguish the principal obligation, whether or not the proceeds of the sale are equal to the amount of the principal obligation, interest and expenses in a proper case.  As we adverted to in Sayo, it is the foreclosure of the thing pledged that results in the satisfaction of the loan liabilities to the pledgee of the pledgors.  Thus, prior to the actual foreclosure of the thing pleged, the sugar quedan financing loan in this case is yet to be settled.

As matters stand, with more reason that PNB cannot be compelled to release the real estate mortgage and the titles involved therein since the issue of whether the sugar quedan financing loan will be fully paid through the pledged sugar receipts remains the subject of pending litigation.

 

 

 

================

 

Republic of the Philippines

Supreme Court

Manila

 

 

FIRST DIVISION

 

 

RAMONA RAMOS and THE ESTATE OF LUIS T. RAMOS,                         Petitioners,

–  versus  –

PHILIPPINE NATIONAL BANK, OPAL PORTFOLIO INVESTMENTS (SPV-AMC), INC. and GOLDEN DRAGON STAR EQUITIES, INC.,

                       Respondents.

  G.R. No. 178218   

Present:

CORONA, C.J.,

     Chairperson,     

LEONARDO-DE CASTRO,

DELCASTILLO,

ABAD,* and

MENDOZA,* JJ.

Promulgated:

December 14, 2011

x- – – – – – – – – – – – – – – – – – – – – – – – – – – – –  – – – – – – – – – – – – – – – – – – – – – -x

D E C I S I O N

 

 

LEONARDO – DE CASTRO, J.:

          Assailed in this Petition for Review on Certiorari[10][1] under Rule 45 of the Rules of Court are the Decision[11][2] dated November 8, 2006 and the Resolution[12][3] dated May 28, 2007 of the Court of Appeals in CA-G.R. CV No. 64360.

          From the records of the case, the following facts emerge:

The Real Estate Mortgage

          In 1973, Luis Ramos obtained a credit line under an agricultural loan account from the Philippine National Bank (PNB), Balayan Branch, for P83,000.00.[13][4]  To secure the loan, the parties executed a Real Estate Mortgage[14][5] on October 23, 1973, the relevant provisions of which stated:

That for and in consideration of certain loans, overdrafts and other credit accommodations obtained from the Mortgagee, which is hereby fixed at P83,000.00 Philippine Currency and to secure the payment of the same and those others that the Mortgagee may extend to the Mortgagor, including interest and expenses, and other obligations owing by the Mortgagor to the Mortgagee, whether direct or indirect principal or secondary, as appear in the accounts, books and records  of the Mortgagee, the Mortgagor does hereby transfer and convey by way of mortgage unto the Mortgagee, its successors or assigns, the parcels of land which are described in the list inserted at the back of this document, or in a supplementary list attached hereto, together with all the buildings and improvements now existing or which may hereafter be erected or constructed thereon and all easements, sugar quotas, agricultural or land indemnities, aids or subsidies, including all other rights or benefits annexed to or inherent therein now existing or which may hereafter exist, and also other assets acquired with the proceeds of the loan hereby secured all of which the mortgagor declares that he is the absolute owner free from all liens and encumbrances.  In case the Mortgagor executes subsequent promissory note or notes either as a renewal of the former note, as an extension thereof, or as a new loan, or is given any other kind of accommodations such as overdrafts, letters of credit, acceptances and bills of exchange, releases of import shipments on Trust Receipts, etc., this mortgage shall also stand as security for the payment of the said promissory note or notes and/or accommodations without the necessity of executing a new contract and this mortgage shall have the same force and effect as if the said promissory note or notes and/or accommodations were existing on the date thereof.  This mortgage shall also stand as security for said obligations and any and all other obligations of the Mortgagor to the Mortgagee of whatever kind and nature whether such obligations have been contracted before, during or after the constitution of this mortgage.  However, if the Mortgagor shall pay to the Mortgagee, its successors or assigns the obligations secured by this mortgage, together with interests, cost and other expenses, on or before the date they are due, and shall keep and perform all the covenants and agreements herein contained for the Mortgagor to keep and perform, then this mortgage shall be null and void, otherwise, it shall remain in full force and effect.[15][6]

The properties included in the mortgage were the parcels of land covered under Transfer Certificate of Title (TCT) Nos. 17217, (T-262) RT-644, 259, (T-265) RT-646, (T-261) RT-643[16][7] of the Registry of Deeds of Batangas.  From the year 1973, Luis Ramos would renew the loan every year after paying the amounts falling due therein.[17][8]

The Sugar Quedan Financing Loans

On March 31, 1989, Luis Ramos and PNB entered into a Credit Line Agreement[18][9] in the amount of P50,000,000.00 under the bank’s sugar quedan financing program.  The agreement pertinently provided thus:

For and in consideration of the Bank agreeing to extend to the Borrower a Revolving Credit Line (the “Line”) in an amount not to exceed PESOS: FIFTY MILLION ONLY (P50,000,000.00), under the Bank’s Sugar Quedan Financing Program for Crop Year 88/89, the parties hereto hereby agree as follows:

SECTION 1. TERMS OF THE LINE

1.01  Amount and Purpose of the Line.  The Line shall be available to the Borrower in an aggregate amount not to exceed FIFTY MILLION ONLY Pesos (P50,000,000.00).  x x x Availments on the Line shall be used by the Borrower exclusively for additional capital in sugar quedan financing. 

1.02  Availability Period; Availments.  (a) Subject to the terms and conditions hereof, the Line shall be available to the Borrower in several availments (individually an “Availment” and collectively the “Availments”) on any Banking Day x x x during the period commencing on the Effectivity Date x x x and terminating on the earliest of (i) August 31, 19__, or (ii) the date the Bank revokes the Line, or (iii) the date the Borrower ceases to be entitled to avail of the Line under the terms hereof.

x x x x

1.03  Promissory NotesAvailments on the Line shall be evidenced by promissory notes (individually a “Note” and collectively the “Notes”) issued by the Borrower in favor of the Bank in the form and substance acceptable to the Bank.  Each Note shall be (i) dated the date of Availment, (ii) in the principal amount of such Availment, with interest thereon at the rate as provided in Section 1.04 hereof, and (iii) payable on the date occurring sixty (60) days from date of the availment, but in no case later than August 31, 19__ (the “Initial Repayment Date”).

x x x x

SECTION 3. SECURITY

3.01 Security Document.  The full payment of any and all sums payable by the Borrower hereunder and under the Notes, the Renewal Notes and the other documents contemplated hereby and the performance of all obligations of the Borrower hereunder and under the Notes, the Renewal Notes and such other documents shall be secured by a pledge (the “Pledge”) on the Borrower’s quedans for crop year ­­­____, as more particularly described in and subject to the terms and conditions of that Contract of Pledge to be executed by the Borrower in favor of the Bank, which Contract shall in any event be in form and substance acceptable to the Bank (the “Security Document”).[19][10] (Emphases ours.)

Pursuant to the above agreement, Luis Ramos obtained an availment of P7,800,000.00, which was evidenced by a promissory note dated April 3, 1989.[20][11]  Accordingly, Luis Ramos executed a Contract of Pledge[21][12] in favor of PNB on April 6, 1989.  Pledged as security for the availment were two official warehouse receipts (quedans) for refined sugar issued by Noah’s Ark Sugar Refinery (Noah’s Ark), which bore the serial numbers NASR RS-18080 and NASR RS-18081.[22][13]  The said quedans were duly indorsed to PNB.

On June 6, 1989, Luis Ramos procured another availment of P7,800,000.00 that was likewise contained in a promissory note[23][14] and for which he executed another Contract of Pledge[24][15] on the aforementioned quedans on even date.  

Thereafter, Luis Ramos was granted a renewal on the promissory notes dated April 3, 1989 and June 6, 1989.  Hence, he executed in favor of PNB the promissory notes dated October 3, 1989 and October 9, 1989.[25][16]     

Luis Ramos eventually failed to settle his sugar quedan financing loans amounting to P15,600,000.00.  On December 28, 1989, he issued an Authorization[26][17] in favor of PNB, stating as follows:

AUTHORIZATION

KNOW ALL MEN BY THESE PRESENTS:

            In consideration of my Sugar Quedan Financing line granted by Philippine National Bank, Balayan Branch in the amount of P50.0 Million, as evidenced by Credit Agreement dated March 31, 1989, the undersigned, as borrower, authorizes the Philippine National Bank, Balayan Branch, or any of its duly authorized officer, to dispose and sell all the Quedan Receipts (Warehouse Receipts) pledged to said bank, after maturity date of the Sugar Quedan Financing line.

            The Sugar Quedan Receipts are hereunder specifically enumerated:

            Official Warehouse Receipt (Quedan) Serial Nos.:

1)  NASR RS – 18081 Crop Year 1988-89 (16,129.03 – 50 kilo bags)

2)  NASR RS – 18080 Crop Year 1988-89 (16,393.44 – 50 kilo bags)

 

          Incidentally, the above-mentioned sugar quedans became the subject of three other cases between PNB and Noah’s Ark, which cases have since reached this Court.[27][18] 

The Agricultural Crop Loan

          Meanwhile, on August 7, 1989, the spouses Luis Ramos and Ramona Ramos (spouses Ramos) also obtained an agricultural loan of P160,000.00 from PNB.  Said loan was evidenced by a promissory note[28][19] issued by the spouses on even date.  The said loan was secured by the real estate mortgage previously executed by the parties on October 23, 1973. 

          On November 2, 1990, the spouses Ramos fully settled the agricultural loan of P160,000.00.[29][20]  They then demanded from PNB the release of the real estate mortgage.  PNB, however, refused to heed the spouses’ demand.[30][21]

          On February 28, 1996, the spouses Ramos filed a complaint for Specific Performance[31][22] against the PNB, Balayan Branch, which was docketed as Civil Case No. 3241 in the Regional Trial Court (RTC) of Balayan, Batangas.  The spouses claimed that the actions of PNB impaired their rights in the properties included in the real estate mortgage.  They alleged that they lost business opportunities since they could not raise enough capital, which they could have acquired by mortgaging or disposing of the said properties.  The spouses Ramos prayed for the trial court to order PNB to release the real estate mortgage on their properties and to return to the spouses the TCTs of the properties subject of the mortgage. 

          In its Answer,[32][23] PNB countered that the spouses Ramos had no cause of action against it since the latter knew that the real estate mortgage secured not only their P160,000.00 agricultural loan but also the other loans the spouses obtained from the bank.  Specifically, PNB alleged that the spouses’ sugar quedan financing loan of P15,600,000.00 remained unpaid as the quedans were dishonored by the warehouseman Noah’s Ark.  PNB averred that it filed a civil action for specific performance against Noah’s Ark involving the quedans and the case was still pending at that time.  As PNB was still unable to collect on the quedans, it claimed that the spouses Ramos’ loan obligations were yet to be fully satisfied.  Thus, PNB argued that it could not release the real estate mortgage in favor of the spouses.

          On March 26, 1999, the RTC rendered a Decision[33][24] in favor of the spouses Ramos, holding that:

          A careful analysis of the evidence on record clearly shows that there is merit to the [spouses Ramos’] complaint that their obligation with [PNB] has long been paid and satisfied.

            As the records show, PNB admitted that [Luis Ramos] has already paid his sugar crop loan in the amount of P160,000.00 x x x.  The reason why it refused to release the certificates of titles to the [spouses Ramos] was allegedly because the said titles were also mortgaged to secure the other obligations of Luis Ramos, particularly the sugar crop loan in the amount of P15.6 Million.  However, even assuming that its argument is correct that the said certificates of titles were also security for the said sugar financing loan, the same is of no consequence since the [spouses Ramos] have likewise fully paid the sugar loan when they effectively transferred the sugar quedans to [PNB] by issuing a letter authority, authorizing it to dispose and sell all the Quedan Receipts (Warehouse Receipts) of the [spouses Ramos] which they pledged to the bank on December 29, 1989 x x x.  [Luis Ramos] executed the said letter of authority to the PNB when he could not anymore afford to pay his loan which became due.  There is no doubt that [PNB] accepted the said quedans with the understanding that the same shall be treated as payment of [spouses Ramos’] obligation, considering that it did not hesitate to proceed to demand from Noah’s Ark Sugar Refinery, the delivery of the sugar stocks to them as new owners thereof.  It is, therefore, very clear that the authorization issued by [Luis Ramos] in favor of [PNB], giving the latter the right to dispose and sell the pledged warehouse receipts/quedans totally terminated the contract of pledge between the [spouses Ramos] and [PNB].  In effect there was a novation of their agreement and dation in payment set in between the parties thereby extinguishing the loan obligation of the [spouses Ramos], as provided in Article 1245 of the Civil Code.

            Article 1245 of the Civil Code provides that dation in payment is a special form of payment whereby property is alienated by the debtor to the creditor in satisfaction of a debt in money.  As stated differently by the noted commentator Manresa, dacion en pago is the transfer of ownership of a thing by the debtor to the creditor as an accepted equivalent of the performance of an obligation.  This was what precisely plaintiff Luis Ramos did in this case.  He alienated the ownership of the sugar quedans and the goods covered by said quedans to [PNB] in satisfaction of his loan obligation with [PNB].

            x x x x

            WHEREFORE, the defendant Philippine National Bank, Balayan Branch is hereby ORDERED to RELEASE the real estate mortgage on the properties of the [spouses Ramos] and to return to them all the transfer certificates of titles which were pledged as security for the agricultural loan which had long been paid and satisfied and to pay the costs.[34][25] (Emphasis ours.)

          PNB filed a Notice of Appeal[35][26] involving the above decision, which was given due course by the RTC in an Order dated May 11, 1999.  The records of the case were then forwarded to the Court of Appeals where the case was docketed as CA-G.R. CV No. 64360.

          Before the appellate court, PNB contested the ruling of the RTC that the spouses Ramos have already settled their sugar quedan financing loan with PNB when they issued a letter of authority, which authorized PNB to sell the quedan receipts of the spouses Ramos.  PNB also contended that the real estate mortgage executed by the spouses Ramos in its favor secured not only the spouses Ramos’ agricultural crop loan in the amount of P160,000.00, but also their 1989 sugar quedan financing loan.[36][27] 

On the other hand, the spouses Ramos averred that the authorization issued by Luis Ramos in favor of PNB, authorizing the latter to dispose and sell the pledged sugar quedans terminated the contract of pledge between the spouses Ramos and PNB.  There was in effect a novation of the contract of pledge and, thereafter, dation in payment set in between the parties.[37][28]  The spouses Ramos also claimed that the condition in the parties’ real estate mortgage, which stated that the “mortgage shall also stand as security for said obligations and any and all other obligations of the MORTGAGOR to the MORTGAGEE of whatever kind and nature, whether such obligations have been contracted before, during or after the constitution of mortgage[,]” was essentially a contract of adhesion and violated the doctrine of mutuality of contract.[38][29]

On November 8, 2006, the Court of Appeals promulgated its assailed decision, reversing the judgment of the RTC.  The appellate court elucidated thus:

          In the instant appeal, the trial court ruled that the issuance of [the] authorization letter by [spouses Ramos] in favor of [PNB] terminated the contract of pledge between the parties and in effect dation in payment sets-in.

            We do not agree.  First, the authorization letter did not provide that ownership of the goods pledged would pass to [PNB] for failure of [spouses Ramos] to pay the loan on time.  This is contrary to the concept of Dacion en pago as the “delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of the performance of the obligation.”  Second, the authorization merely provided for the appointment of [PNB] as attorney-in-fact with authority, among other things, to sell or otherwise dispose of the said real rights, in case of default by [spouses Ramos], and to apply the proceeds to the payment of the loan.  This provision is a standard condition in pledge contracts and is in conformity with Article 2087 of the Civil Code, which authorizes the pledgee to foreclose the pledge and alienate the pledged property for the payment of the principal obligation.  Lastly, there was no meeting of the minds between [spouses Ramos] and [PNB] that the loan would be extinguished by dation in payment.

            Article 1245 of the Civil Code provides that the law on sales shall govern an agreement of dacion en pago.  A contract of sale is perfected at the moment there is a meeting of the minds of the parties thereto upon the thing which is the object of the contract and upon the price.  x x x.

            x x x x

            In this case, there was no meeting of the mind between the parties that would lead us to conclude that dation in payment has set-in.  The trial court based its decision that there was dation in payment solely on the authorization letter, which we do not agree.  This is because the authorization letter merely authorizes “the Philippine National Bank, Balayan Branch, or any of its duly authorized officer, to dispose and sell all the Quedan Receipts (Warehouse Receipts) pledge to said bank, after maturity date of the Sugar Quedan Financing Loan.

            Moreover, in case of doubt as to whether a transaction is a pledge or dation in payment, the presumption is in favor of pledge, the latter being the lesser transmission of rights and interest.

            x x x x

            WHEREFORE, the appeal is hereby GRANTED.  ACCORDINGLY, the Decision dated March 26, 1999 of the Regional Trial Court of Balayan, Batangas, Branch 9, is hereby REVERSED and a new one is entered ordering [PNB] to hold the release of all the transfer certificates of titles which were pledged as security for the agricultural loan of [spouses Ramos].[39][30]

          On November 30, 2006, the spouses Ramos filed a Motion for Reconsideration[40][31] of the Court of Appeals decision.  The spouses then asserted that it was unclear whether the parties intended that the real estate mortgage would also secure the sugar quedan financing loan, which was specifically secured by the pledge on the quedans.  They alleged that the sugar quedan financing loan, the contract of pledge and the promissory notes did not even make any reference to the real estate mortgage.  PNB apparently violated its implied duty of good faith by wrongfully retaining the spouses Ramos’ collateral and improperly invoking the obscure terms of the real estate mortgage it prepared.

          Subsequently, the spouses Ramos filed a Motion for Leave to File Supplemental Argument.[41][32]  They added that PNB could not have acquired a security interest on the real estate mortgage for the purpose of the sugar quedan financing loan because when the real estate mortgage was constituted, the credit line from whence the sugar quedan financing loan was sourced did not yet exist.  The spouses Ramos also argued that PNB was in bad faith in retaining the collateral of their real estate mortgage as it knew or should have known that the said security was already void given that the agricultural crop loan secured by the mortgage was already fully paid.    

          In the assailed Resolution dated May 28, 2007, the Court of Appeals denied the spouses Ramos’ motion for reconsideration as it found no compelling reason to reverse its Decision dated November 8, 2006.

          On June 18, 2007, the counsel for the spouses Ramos notified the Court of Appeals that Luis Ramos had passed away and that the latter’s wife, Ramona Ramos, acted as the legal representative of Luis’ estate.

Thereafter, Ramona Ramos and the estate of Luis Ramos (petitioners) filed the instant petition in a final bid to have the real estate mortgage declared null and void as regards their sugar quedan financing loan, as well as to compel PNB to return the TCTs of the properties included in the said mortgage.

          On September 10, 2007, PNB filed a Motion for Substitution of Party,[42][33] alleging that it has sold to Golden Dragon Star Equities, Inc.     all of its rights, titles and interests in and all obligations arising out of or in connection with several cases, including the instant case.  Afterwards, Golden Dragon Star Equities, Inc. assigned to Opal Portfolio Investments (SPV-AMC) Inc. all of its rights and obligations as a purchaser under the contract of sale with PNB.  Thus, PNB prayed that it be substituted by Opal Portfolio Investments (SPV-AMC) Inc. as party respondent in the petition. 

          In the Resolution[43][34] dated October 10, 2007, the Court denied the above motion of PNB and instead ordered that Opal Portfolio Investments (SPV-AMC) Inc. and Golden Dragon Star Equities, Inc. be included as respondents in addition to PNB.  The said corporations were then required to file their comment on the petition within ten days from notice.[44][35]  On January 25, 2008, Opal Portfolio Investments (SPV-AMC) Inc. and Golden Dragon Star Equities, Inc. manifested that they were adopting as their own the comment filed by PNB.[45][36]      

The Issues

          Petitioners raise the following issues:

1.

 

IS THE MEANING OF THE GENERAL TERMS OF THE REAL ESTATE MORTGAGE CLEAR AND LEAVE NO DOUBT THAT THERE IS NO NEED TO DETERMINE WHETHER THE PARTIES INTENDED TO CREATE AND PROVIDE SECURITY INTEREST ON THE REAL ESTATE COLLATERAL OF BORROWER LUIS T. RAMOS FOR THE SUGAR QUEDAN FINANCING LOAN GRANTED TO HIM BY LENDER PNB, IN ADDITION TO THE AGRICULTURAL CROP LOAN THAT WAS UNDISPUTEDLY AGREED UPON BY THEM TO BE COVERED BY THE COLLATERAL?

2.

SHOULD THE GENERAL TERMS OF THE REAL ESTATE MORTGAGE EXECUTED BY BORROWER LUIS T. RAMOS IN FAVOR OF LENDER PNB BE UNDERSTOOD TO INCLUDE IN ITS COVERAGE THE BORROWER’S SUGAR QUEDAN FINANCING LOAN THAT IS DIFFERENT FROM HIS AGRICULTURAL CROP LOAN UNDISPUTEDLY AGREED UPON BY THE PARTIES TO BE COVERED BY THE COLLATERAL?

3.

SHOULD THE REAL ESTATE MORTGAGE EXECUTED IN 1973 BE CONSIDERED VALID AND EXISTING SECURITY DEVICE AGREEMENT FOR SUGAR QUEDAN FINANCING LOAN OBTAINED PURSUANT TO CREDIT LINE AGREEMENT EXECUTED ONLY IN 1989?[46][37]

          Petitioners principally argue that the scope and coverage of the real estate mortgage excluded the sugar quedan financing loan.  Petitioners assert that the mortgage contained a blanket mortgage clause or a dragnet clause, which stated that the mortgage would secure not only the loans already obtained but also any other amount that Luis Ramos may loan from PNB.  Petitioners posit that a dragnet clause will cover and secure a subsequent loan only if said loan is made in reliance on the original security containing the dragnet clause.  Petitioners state that said condition did not exist in the instant case, as the sugar quedan financing loan was not obtained in reliance on the previously executed real estate mortgage.  Such fact was supposedly apparent from the documents pertaining to the sugar quedan financing loans, i.e., the credit line agreement, the various promissory notes and the contracts of pledge. 

          PNB responded that the issue of whether the parties intended for the real estate mortgage to secure the sugar quedan financing loan was never raised in the RTC or in the Court of Appeals.  Therefore, the same cannot be raised for the first time in the motion for reconsideration of the Court of Appeals decision and in the instant petition.  Likewise, PNB asserts that the spouses Ramos consented to the terms of the real estate mortgage that the real properties subject thereof should be used to secure future and subsequent loans of the mortgagor.  Since the spouses never contested the validity and enforceability of the real estate mortgage, the same must be respected and should govern the relations of the parties therein.

PNB also avers that the Court of Appeals did not err in ruling that there was no dacion en pago and/or novation under the circumstances prevailing in the instant case.  The Authorization issued by Luis Ramos in favor of PNB did not terminate the contract of pledge between the parties as PNB was merely authorized to dispose and sell the sugar quedans to be applied as payment to the obligation.  Hence, no transfer of ownership occurred.  Article 2103 of the Civil Code expressly states that “unless the thing pledged is expropriated, the debtor continues to be the owner thereof.”          PNB argued that when it accepted the Authorization, it recognized that it was merely being authorized by Luis Ramos to dispose of the quedans.  Therefore, until the spouses Ramos fully settle their loans from PNB, the latter believes that it has every right to retain possession of the properties offered as collateral thereto. 

After due consideration of the issues raised, we are compelled to deny the petition.

To begin with, we note that, indeed, petitioners are presently raising issues that were neither invoked nor discussed before the RTC and the main proceedings before the Court of Appeals.  The very issues laid down by petitioners for our consideration were first brought up only in their motion for reconsideration of the Court of Appeals Decision dated November 8, 2006. 

In their complaint before the RTC and in their reply to PNB’s appeal to the Court of Appeals, petitioners relied on the theory that they have already settled all of their loan obligations with PNB, including their sugar quedan financing loan, such that they were entitled to the release of the real estate mortgage that secured the said obligations.  When the Court of Appeals rendered the assailed decision, petitioners foisted a new argument in their motion for reconsideration that the parties did not intend for the sugar quedan financing loan to be covered by the real estate mortgage.  Before this Court, petitioners are now reiterating and expounding on their argument that their sugar quedan financing loan was beyond the ambit of the previously executed real estate mortgage.  We rule that such a change in petitioners’ theory may not be allowed at such late a stage in the case.

The general rule is that issues raised for the first time on appeal and not raised in the proceedings in the lower court are barred by estoppel.  Points of law, theories, issues, and arguments not brought to the attention of the trial court ought not to be considered by a reviewing court, as these cannot be raised for the first time on appeal.  To consider the alleged facts and arguments raised belatedly would amount to trampling on the basic principles of fair play, justice, and due process.[47][38]        

Jurisprudence, nonetheless, provides for certain exceptions to the above rule.  First, it is a settled rule that the issue of jurisdiction may be raised at any time, even on appeal, provided that its application does not result in a mockery of the tenets of fair play.  Second, as held in Lianga Lumber Company v. Lianga Timber Co., Inc.,[48][39] in the interest of justice and within the sound discretion of the appellate court, a party may change his legal theory on appeal only when the factual bases thereof would not require presentation of any further evidence by the adverse party in order to enable it to properly meet the issue raised in the new theory. 

None of the above exceptions, however, applies to the instant case.  As regards the first exception, the issue of jurisdiction was never raised at any point in this case.  Anent the second exception, the Court finds that the application of the same in the case would be improper, as further evidence is needed in order to answer and/or refute the issue raised in petitioners’ new theory.

To recapitulate, petitioners are now claiming that the sugar quedan financing loan it availed from PNB was not obtained in reliance on the real estate mortgage.  Petitioners even insist that the credit line agreement, the promissory notes and the contracts of pledge entered into by the parties were silent as to the applicability thereto of the real estate mortgage.  Otherwise stated, petitioners are harping on the intention of the parties vis-à-vis the security arrangement for the credit line agreement and the availments thereof constituting the sugar quedan financing loan.  The impropriety of the petitioners’ posturing is further confounded by the fact that the credit line agreement under PNB’s sugar quedan financing program and the availments thereto were entered into by Luis Ramos and PNB as far back as the year 1989.  Petitioners’ new theory, on the other hand, was only raised much later on the spouses’ motion for reconsideration of the Court of Appeals decision dated November 8, 2006, or after a period of more or less seventeen years since the execution of the credit line agreement.  The Court, therefore, finds itself unable to give credit to the new theory proffered by petitioners since to do so would gravely offend the rights of PNB to due process. 

Even if the Court were willing to overlook petitioners’ procedural misstep on appeal, their belatedly proffered theory still fails to convince us that the Court of Appeals committed any reversible error in its resolution of the present case.

According to petitioners, their case requires an application of Article 1371 of the Civil Code, which provides that “in order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be principally considered.”  To their mind, the mere fact that the 1989 credit line agreement, the promissory notes and the contracts of pledge executed in relation to the sugar quedan financing loan contained no reference to the real estate mortgage is sufficient proof that the parties did not intend the real estate mortgage to secure the sugar quedan financing loan, but only the agricultural crop loans. The Court finds that it cannot uphold this proposition.

In Prisma Construction & Development Corporation v. Menchavez,[49][40] we discussed the settled principles that:

Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. When the terms of a contract are clear and leave no doubt as to the intention of the contracting parties, the literal meaning of its stipulations governs.  In such cases, courts have no authority to alter the contract by construction or to make a new contract for the parties; a court’s duty is confined to the interpretation of the contract the parties made for themselves without regard to its wisdom or folly, as the court cannot supply material stipulations or read into the contract words the contract does not contain.  It is only when the contract is vague and ambiguous that courts are permitted to resort to the interpretation of its terms to determine the parties’ intent.[50][41]

Here, it cannot be denied that the real estate mortgage executed by the parties provided that it shall stand as security for any “subsequent promissory note or notes either as a renewal of the former note, as an extension thereof, or as a new loan, or is given any other kind of accommodations such as overdrafts, letters of credit, acceptances and bills of exchange, releases of import shipments on Trust Receipts, etc.”  The same real estate mortgage likewise expressly covered “any and all other obligations of the Mortgagor to the Mortgagee of whatever kind and nature whether such obligations have been contracted before, during or after the constitution of this mortgage.”  Thus, from the clear and unambiguous terms of the mortgage contract, the same has application even to future loans and obligations of the mortgagor of any kind, not only agricultural crop loans.

Such a “blanket clause” or “dragnet clause” in mortgage contracts has long been recognized in our jurisprudence.  Thus, in another case, we held:

As a general rule, a mortgage liability is usually limited to the amount mentioned in the contract.  However, the amounts named as consideration in a contract of mortgage do not limit the amount for which the mortgage may stand as security if, from the four corners of the instrument, the intent to secure future and other indebtedness can be gathered. This stipulation is valid and binding between the parties and is known as the “blanket mortgage clause” (also known as the “dragnet clause).”

In the present case, the mortgage contract indisputably provides that the subject properties serve as security, not only for the payment of the subject loan, but also for “such other loans or advances already obtained, or still to be obtained.” The cross-collateral stipulation in the mortgage contract between the parties is thus simply a variety of a dragnet clause. After agreeing to such stipulation, the petitioners cannot insist that the subject properties be released from mortgage since the security covers not only the subject loan but the two other loans as well.[51][42]  (Emphases supplied.)

Moreover, petitioners’ reliance on Prudential Bank v. Alviar[52][43] is sorely misplaced.  In Prudential, the fact that another security was given for subsequent loans did not remove such loans from the ambit of the dragnet clause in a previous real estate mortgage contract.  However, it was held in Prudential that the special security for subsequent loans must first be exhausted before the creditor may foreclose on the real estate mortgage.  In other words, the creditor is allowed to hold on to the previous security (the real estate mortgage) in case of deficiency after resort to the special security given for the subsequent loans.  Verily, even under the Prudential ruling cited by petitioners, they are not entitled to the release of the real estate mortgage and the titles to the properties mentioned therein.

Ultimately, we likewise find no reason to overturn the assailed ruling of the Court of Appeals that the contract of pledge between petitioners and PNB was not terminated by the Authorization letter issued by Luis Ramos in favor of PNB.  The status of PNB as a pledgee of the sugar quedans involved in this case had long been confirmed by the Court in its Decision dated July 9, 1998 in Philippine National Bank v. Sayo, Jr.[53][44] and the same is neither disputed in the instant case.  We reiterate our ruling in Sayo that:

The creditor, in a contract of real security, like pledge, cannot appropriate without foreclosure the things given by way of pledge.  Any stipulation to the contrary, termed pactum commissorio, is null and void.  The law requires foreclosure in order to allow a transfer of title of the good given by way of security from its pledgor, and before any such foreclosure, the pledgor, not the pledgee, is the owner of the goods. x x x.[54][45]

          A close reading of the Authorization executed by Luis Ramos reveals that it was nothing more than a letter that gave PNB the authority to dispose of and sell the sugar quedans after the maturity date thereof.  As held by the Court of Appeals, the said grant of authority on the part of PNB is a standard condition in a contract of pledge, in accordance with the provisions of Article 2087 of the Civil Code that “it is also of the essence of these contracts that when the principal obligation becomes due, the things in which the pledge or mortgage consists may be alienated for the payment to the creditor.”  More importantly, Article 2115 of the Civil Code expressly provides that the sale of the thing pledged shall extinguish the principal obligation, whether or not the proceeds of the sale are equal to the amount of the principal obligation, interest and expenses in a proper case.  As we adverted to in Sayo, it is the foreclosure of the thing pledged that results in the satisfaction of the loan liabilities to the pledgee of the pledgors.  Thus, prior to the actual foreclosure of the thing pleged, the sugar quedan financing loan in this case is yet to be settled.

As matters stand, with more reason that PNB cannot be compelled to release the real estate mortgage and the titles involved therein since the issue of whether the sugar quedan financing loan will be fully paid through the pledged sugar receipts remains the subject of pending litigation.

WHEREFORE, the petition is DENIED.  The Decision dated November 8, 2006 and the Resolution dated May 28, 2007 of the Court of Appeals in CA-G.R. CV No. 64360 are hereby AFFIRMED.  Costs against petitioners.

 

SO ORDERED.

TERESITA J. LEONARDO-DE CASTRO

  Associate Justice

 

 

 

WE CONCUR:

RENATO C. CORONA

Chief Justice

Chairperson

 

 

 

 

 

 

 

MARIANO C. DEL CASTILLO

Associate Justice

ROBERTO A. ABAD

Associate Justice

 

 

 

 

 

 

 

 

 

 

 

 

JOSE CATRAL MENDOZA

Associate Justice

 

 

 

CERTIFICATION

Pursuant to Section 13, Article VIII of the Constitution, I certify that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division.

RENATO C. CORONA

Chief Justice



[1][38]          Imani v. Metropolitan Bank & Trust Company, G.R. No. 187023, November 17, 2010, 635 SCRA 357, 371.

[2][38]          Imani v. Metropolitan Bank & Trust Company, G.R. No. 187023, November 17, 2010, 635 SCRA 357, 371.

[3][39]          166 Phil. 661, 687 (1977).

[4][40]          G.R. No. 160545, March 9, 2010, 614 SCRA 590.

[5][41]         Id. at 597-598.

[6][42]          Banate v. Philippine Countryside Rural Bank (Liloan, Cebu), Inc., G.R. No. 163825, July 13, 2010, 625 SCRA 21, 30-31.

[7][43]          502 Phil. 595 (2005).

[8][44]          354 Phil. 211 (1998).

[9][45]         Id. at 244.

*               Per Raffle dated November 14, 2011.

[10][1]          Rollo, pp. 3-38.

[11][2]         Id. at 39-53; penned by Associate Justice Monina Arevalo-Zenarosa with Associate Justices Martin S. Villarama, Jr. and Lucas P. Bersamin (now members of this Court), concurring.

[12][3]         Id. at 54-56.

[13][4]          TSN, May 28, 1998, p. 5.

[14][5]          Rollo, pp. 57-62.

[15][6]         Id. at 57.

[16][7]         Id. at 59-62.

[17][8]          TSN, December 18, 1997, p. 4; TSN, May 28, 1998, pp. 14-16.

[18][9]          Rollo, pp. 63-76.

[19][10]        Id. at 63-65.

[20][11]        Id. at 77.

[21][12]        Id. at 78-81.

[22][13]        Id. at 82-85.

[23][14]         Id. at 86.

[24][15]         Records, pp. 43-46.

[25][16]         Rollo, pp. 87-88.

[26][17]        Id. at 89.

[27][18]      On March 16, 1990, PNB filed a complaint for specific performance with damages against Noah’s Ark in view of the latter’s refusal to deliver the stock of sugar covered by the quedans indorsed by Luis Ramos.  The complaint was docketed as Civil Case No. 90-53023 in the RTC of Manila.  Subsequently, PNB filed a motion for summary judgment.  The RTC denied the motion, as well as the motion for reconsideration thereon.  PNB elevated the case to the Court of Appeals via a special civil action for certiorari

In a Decision dated September 13, 1991, the appellate court set aside the ruling of the trial court and directed that “summary judgment be rendered forthwith in favor of PNB against Noah’s Ark Sugar Refinery, et al., as prayed for in petitioner’s Motion for Summary Judgment.”  The said judgment of the Court of Appeals became final and entry of judgment was made on May 26, 1992.  The case was then remanded to the trial court.  On June 18, 1992, instead of following the order of the Court of Appeals, the RTC dismissed the complaint of PNB.

PNB filed an appeal to this Court, which was docketed as G.R. No. 107243 (Philippine National Bank v. Noah’s Ark Sugar Refinery).  In our Decision dated September 1, 1993, the Court reversed the decision of the RTC and ordered Noah’sArk:

(a)        to deliver to the petitioner Philippine National Bank, ‘the sugar stocks covered by the Warehouse Receipts/Quedans which are now in the latter’s possession as holder for value and in due course; or alternatively, to pay (said) plaintiff actual damages in the amount of P39.1 million,’ with legal interest thereon from the filing of the complaint until full payment; and

(b)        to pay plaintiff Philippine National Bank attorney’s fees, litigation expenses and judicial costs hereby fixed at the amount of One Hundred Fifty Thousand Pesos (P150,000.00) as well as the costs.

Noah’sArkfiled a motion for reconsideration, but we denied the same in an Order dated January 10, 1994.

Thereafter, Noah’s Arkfiled with the RTC an omnibus motion praying, inter alia, for the deferment of the proceedings until it can be heard on its claim for warehouseman’s lien.  The RTC granted Noah’sArk’s motion and proceeded to receive evidence in support of the latter’s claim for warehouseman’s lien.  In an Order dated March 1, 1995, the RTC declared that there existed in favor of Noah’s Ark a valid warehouseman’s lien and so, the execution of judgment was ordered stayed until PNB shall have satisfied the full amount of the lien.

PNB filed a petition before this Court, seeking the annulment of the resolutions of the RTC that authorized the reception of the evidence for the claim of warehouseman’s lien and declared the validity of the said lien in favor of PNB.  The petition was docketed as G.R. No. 119231 (Philippine National Bank v. Se).  In our Decision dated April 18, 1996, we denied PNB’s petition, ruling that while PNB was entitled to the sugar stocks as endorsee of the quedans, the delivery to it shall only be effected upon its payment of storage fees to Noah’sArk.

After the decision in G.R. No. 119231 became final and executory, Noah’s Arkfiled a motion for execution of its lien as warehouseman.  PNB opposed the motion, arguing that the lien claimed in the amount of P734,341,595.06 was illusory and that there was no legal basis for the execution of Noah’s Ark’s lien as warehouseman until PNB compels the delivery of the sugar stocks.  In an Order dated April 15, 1997, the RTC granted the motion for execution of Noah’s Ark.  PNB moved for the reconsideration of the said order but the same was denied.  PNB, thus, instituted a petition for certiorari with the Court, ascribing grave abuse of discretion on the part of the RTC, which petition was docketed as G.R. No. 129918 (Philippine National Bank v. Sayo). 

In the Court’s decision dated July 9, 1998, the status of PNB as a pledgee of the quedans was confirmed.  Nonetheless, we stated that Noah’sArk was entitled to the warehouseman’s lien and that the finality of the decision in G.R. No. 119231 sustained the said lien.  The Court then remanded the case to the RTC to afford Noah’sArk the opportunity to adduce evidence on the amount due as warehouseman’s lien.

[28][19]         Records, p. 5.

[29][20]        Id. at 2.

[30][21]        Id. at 144.

[31][22]        Id. at 1-4.

[32][23]        Id. at 13-16.

[33][24]         Rollo, pp. 94-115; penned by Executive Judge Elihu A. Ybanez.

[34][25]        Id. at 108-115.

[35][26]         Records, p. 305.

[36][27]         CA rollo, pp. 39-40.

[37][28]        Id. at 97-98.

[38][29]        Id. at 102.

[39][30]         Rollo, pp. 48-53.

[40][31]        Id. at 116-128.

[41][32]         CA rollo, pp. 178-195.

[42][33]         Rollo, pp. 172-190.

[43][34]        Id. at 211-A.

[44][35]        Id. at 221-A.

[45][36]        Id. at 237-240.

[46][37]        Id. at. 6-7.

[47][38]         Imani v. Metropolitan Bank & Trust Company, G.R. No. 187023, November 17, 2010, 635 SCRA 357, 371.

[48][39]         166 Phil. 661, 687 (1977).

[49][40]         G.R. No. 160545, March 9, 2010, 614 SCRA 590.

[50][41]        Id. at 597-598.

[51][42]         Banate v. Philippine Countryside Rural Bank (Liloan, Cebu), Inc., G.R. No. 163825, July 13, 2010, 625 SCRA 21, 30-31.

[52][43]         502 Phil. 595 (2005).

[53][44]         354 Phil. 211 (1998).

[54][45]        Id. at 244.

CASE 2011-0235: PEOPLE OF THE PHILIPPINES VS. HENRY ARPON y JUNTILLA (G.R. No. 183563, 14 DECEMBER 2011, LEONARDO-DE CASTRO, J.) SUBJECT/S: RAPE; PENALTIES AND INDEMNITIES  MODIFIED. (BRIEF TITLE: PEOPLE VS. ARPON)

 

=======================

 

DISPOSITIVE:

 

          WHEREFORE, in light of the foregoing, the appeal is DENIED.  The Decision dated February 8, 2008 of the Court of Appeals in CA-G.R. CR.-H.C. No. 00560 is hereby AFFIRMED with the following MODIFICATIONS:

 

(1)                     For the first count of rape herein established, the accused-appellant Henry Arpon y Juntilla is hereby EXEMPTED from criminal liability.

 

(2)                     For the second and third counts of rape, the accused-appellant is found GUILTY beyond reasonable doubt of two (2) counts of QUALIFIED RAPE and is hereby sentenced to suffer the penalty of reclusion perpetua for each count. 

 

(3)                     As to the civil liability, the accused-appellant is ORDERED to pay AAA for each of the three (3) counts of rape P75,000.00 as civil indemnity, P75,000.00 as moral damages and P30,000.00 as exemplary damages, plus legal interest on all damages awarded at the legal rate of 6% from the date of finality of this Decision. 

 

(4)                     The case is hereby REMANDED to the court of origin for its appropriate action in accordance with Section 51 of Republic Act No. 9344.

 

No costs.

 

SO ORDERED.

 

 

=======================

 

 

Republic of the Philippines

Supreme Court

Manila

 

 

FIRST DIVISION

 

 

PEOPLE OF THE PHILIPPINES,

                   Plaintiff-Appellee,

 

 

 

 

–  versus  –

 

 

 

 

HENRY ARPON y JUNTILLA,

                   Accused-Appellant.

  G.R. No. 183563

 

Present:

 

CORONA, C.J.,

       Chairperson,

LEONARDO-DE CASTRO,

BERSAMIN,

DELCASTILLO, and

VILLARAMA, JR., JJ.

 

Promulgated:

 

December 14, 2011

x- – – – – – – – – – – – – – – – – – – – – – – – – – – – –  – – – – – – – – – – – – – – – – – – – – – -x

 

 

D E C I S I O N

 

 

LEONARDO-DE CASTRO, J.:

 

 

Assailed before Us is the Decision[1][1] of the Court of Appeals dated February 8, 2008 in CA-G.R. CR.-H.C. No. 00560, which affirmed with modification the Decision[2][2] dated September 9, 2002 of the Regional Trial Court (RTC) of Tacloban City, Branch 7, in Criminal Case Nos. 2001-01-46 to 2001-01-53, finding the accused-appellant Henry Arpon y Juntilla guilty beyond reasonable doubt of one (1) count of statutory rape and seven (7) counts of rape against the private complainant AAA.[3][3]

 

On December 29, 1999, the accused-appellant was charged[4][4] with eight (8) counts of rape in separate informations, the accusatory portions of which state:

 

Criminal Case No. 2000-01-46

 

That sometime in the year 1995 in the municipality of [XXX], Province of Leyte, Philippines, and within the jurisdiction of this Honorable Court, the said accused, who is the uncle of [AAA], the offended party, actuated by lust, did, then and there, willfully, unlawfully and feloniously, succeed in having carnal knowledge of the said [AAA], who was then only eight (8) years old, without her consent and against her will.

 

Contrary to law with the aggravating circumstance that the victim is under eighteen (18) years of age and the offender is a relative by consanguinity within the third civil degree.[5][5] 

Criminal Case No. 2000-01-47

 

That sometime in the month of July, 1999 in the municipality of [XXX], Province of Leyte, Philippines, and within the jurisdiction of this Honorable Court, the said accused, who is the uncle of [AAA], the twelve-year-old offended party, actuated by lust, did, then and there, willfully, unlawfully and feloniously, and with the use of force and violence succeed in having carnal knowledge of the said [AAA], without her consent and against her will.

 

Contrary to law with the aggravating circumstance that the victim is under eighteen (18) years of age and the offender is a relative by consanguinity within the third civil degree.[6][6]

 

Criminal Case No. 2000-01-48

 

That sometime in the month July 1999 in the municipality of [XXX], Province of Leyte, Philippines, and within the jurisdiction of this Honorable Court, the said accused, who is the uncle of [AAA], the twelve-year-old offended party, actuated by lust, did, then and there, willfully, unlawfully and feloniously, and with the use of force and violence succeed in having carnal knowledge of the said [AAA], without her consent and against her will.

 

Contrary to law with the aggravating circumstance that the victim is under eighteen (18) years of age and the offender is a relative by consanguinity within the third civil degree.[7][7]

 

Criminal Case No. 2000-01-49

 

That sometime in the month of July, 1999 in the municipality of [XXX], Province of Leyte, Philippines, and within the jurisdiction of this Honorable Court, the said accused, who is the uncle of [AAA], the twelve-year-old offended party, actuated by lust, did, then and there, willfully, unlawfully and feloniously, and with the use of force and violence succeed in having carnal knowledge of the said [AAA], without her consent and against her will.

 

Contrary to law with the aggravating circumstance that the victim is under eighteen (18) years of age and the offender is a relative by consanguinity within the third civil degree.[8][8]

 

Criminal Case No. 2000-01-50

 

That sometime in the month of July, 1999 in the municipality of [XXX], Province of Leyte, Philippines, and within the jurisdiction of this Honorable Court, the said accused, who is the uncle of [AAA], the twelve-year-old offended party, actuated by lust, did, then and there, willfully, unlawfully and feloniously, and with the use of force and violence succeed in having carnal knowledge of the said [AAA], without her consent and against her will.

 

Contrary to law with the aggravating circumstance that the victim is under eighteen (18) years of age and the offender is a relative by consanguinity within the third civil degree.[9][9]

 

Criminal Case No. 2000-01-51

 

That sometime in the month of July, 1999 in the municipality of [XXX], Province of Leyte, Philippines, and within the jurisdiction of this Honorable Court, the said accused, who is the uncle of [AAA], the twelve-year-old offended party, actuated by lust, did, then and there, willfully, unlawfully and feloniously, and with the use of force and violence succeed in having carnal knowledge of the said [AAA], without her consent and against her will.

 

Contrary to law with the aggravating circumstance that the victim is under eighteen (18) years of age and the offender is a relative by consanguinity within the third civil degree.[10][10]

 

Criminal Case No. 2000-01-52

 

That sometime in the month of August, 1999 in the municipality of [XXX], Province of Leyte, Philippines, and within the jurisdiction of this Honorable Court, the said accused, who is the uncle of [AAA], the twelve-year-old offended party, actuated by lust, did, then and there, willfully, unlawfully and feloniously, and with the use of force and violence succeed in having carnal knowledge of the said [AAA], without her consent and against her will.

 

Contrary to law with the aggravating circumstance that the victim is under eighteen (18) years of age and the offender is a relative by consanguinity within the third civil degree.[11][11]

 

Criminal Case No. 2000-01-47

 

That sometime in the month of August, 1999 in the municipality of [XXX], Province of Leyte, Philippines, and within the jurisdiction of this Honorable Court, the said accused, who is the uncle of [AAA], the twelve-year-old offended party, actuated by lust, did, then and there, willfully, unlawfully and feloniously, and with the use of force and violence succeed in having carnal knowledge of the said [AAA], without her consent and against her will.

 

Contrary to law with the aggravating circumstance that the victim is under eighteen (18) years of age and the offender is a relative by consanguinity within the third civil degree.[12][12] (Emphases ours.)

 

 

During the arraignment of the accused-appellant on November 28, 2000, he entered a plea of not guilty.[13][13]  On March 13, 2001, the pre-trial conference of the cases was conducted and the parties stipulated on the identity of the accused-appellant in all the cases, the minority of the victim and the fact that the accused appellant is the uncle of the victim.[14][14]

 

The pre-trial order containing the foregoing stipulations was signed by the accused and his counsel.  The cases were then heard on consolidated trial. 

 

The prosecution presented the lone testimony of AAA to prove the charges against the accused-appellant.  AAA testified that she was born on November 1, 1987.[15][15]  In one afternoon when she was only eight years old, she stated that the accused-appellant raped her inside their house.  She could not remember, though, the exact month and date of the incident.  The accused-appellant stripped off her shorts, panties and shirt and went on top of her.  He had his clothes on and only pulled down his zipper.  He then pulled out his organ, put it in her vagina and did the pumping motion.  AAA felt pain but she did not know if his organ penetrated her vagina.  When he pulled out his organ, she did not see any blood.  She did so only when she urinated.[16][16]  

 

AAA also testified that the accused-appellant raped her again in July 1999 for five times on different nights.  The accused-appellant was then drinking alcohol with BBB, the stepfather of AAA, in the house of AAA’s neighbor.  He came to AAA’s house, took off her panty and went on top of her.  She could not see what he was wearing as it was nighttime.  He made her hold his penis then he left.  When asked again how the accused-appellant raped her for five nights in July of the said year, AAA narrated that he pulled down her panty, went on top of her and pumped.  She felt pain as he put his penis into her vagina.  Every time she urinated, thereafter, she felt pain.  AAA said that she recognized the accused-appellant as her assailant since it was a moonlit night and their window was only covered by cloth.  He entered through the kitchen as the door therein was detached.[17][17]

 

AAA further related that the accused-appellant raped her again twice in August 1999 at nighttime.  He kissed her and then he took off his shirt, went on top of her and pumped.  She felt pain in her vagina and in her chest because he was heavy.  She did not know if his penis penetrated her vagina.  She related that the accused-appellant was her uncle as he was the brother of her mother.  AAA said that she did not tell anybody about the rapes because the accused-appellant threatened to kill her mother if she did.  She only filed a complaint when he proceeded to also rape her younger sister, DDD.[18][18]

 

After the testimony of AAA, the prosecution formally offered its documentary evidence, consisting of: (1) Exhibit A – the Medico-Legal Report,[19][19] which contained the results of the medical examination conducted on AAA by Dr. Rommel Capungcol and Dr. Melissa Adel Gagala on October 26, 1999; and (2) Exhibit B – the Social Case Study Report[20][20] pertaining to AAA’s case, which was issued by the Municipal Social Welfare and Development Office of the Province of Leyte.      

 

The Medico-Legal Report stated the following findings:

 

P. E. Findings:              Surg. Findings:

– (-) Physical injuries.

                                    OB- NOTES:

– Patient came in with history of rape since 8 year old for so many times. last act was March 1999.

 

O:        Pelvic Exam:

                                    Ext. Genetalia – grossly normal.

Introitus: Old, healed incomplete laceration at 3 & 9 o’clock position

                                    Speculum Exam: not done due to resistance.

                                    Internal Exam:

 

Vaginal smear for presence of spermatozoa:      = NEGATIVE[21][21]

 

 

Upon the other hand, the defense called the accused-appellant to the witness stand to deny the informations filed against him and to refute the testimony of AAA.  He testified that when the first incident of rape allegedly happened in 1995, he was only 13 years old as he was born on February 23, 1982.  In 1995, he worked in Sagkahan, TaclobanCityas a houseboy for a certain Gloria Salazar and he stayed there up to 1996.  He stated that he was working in TaclobanCitywhen the alleged rapes happened in the municipalityof XXX.  When he would go home from Tacloban, he would stay at the house of a certain Fred Antoni.  He did not go to the house of AAA as the latter’s parents were his enemies.  He said that he had a quarrel with AAA’s parents because he did not work with them in the ricefields.  He further recounted that in July 1999, he was also living in TaclobanCityand worked there as a dishwasher at a restaurant.  He worked there from 1998 up to September 1999.  The accused-appellant likewise stated that in August 1999, he was still working at the same restaurant in TaclobanCity.  While working there, he did not go home to XXX as he was busy with work.  He denied that he would have drinking sprees with AAA’s stepfather, BBB, because they were enemies.[22][22]

 

On cross-examination, the accused-appellant admitted that the mother of AAA was his sister and they were close to each other.  He said that his parents were still alive in 1995 up to October 1999 and the latter then resided at Calaasan, Alangalang, Leyte.  He indicated that his parents’ house was about two kilometers away from the house of AAA.  While he was working at the restaurant in TaclobanCity, he would visit his parents once every month, mainly on Sundays.[23][23] 

 

The Judgment of the RTC

 

On September 9, 2002, the RTC of Tacloban City, Branch 7, rendered a Decision convicting the accused-appellant as follows:

 

WHEREFORE, premises considered, pursuant to Art. 266-A and 266-B of the Revised Penal Code as amended, and further amended by R.A. 8353 (Rape Law of 1997) and R.A. 7659 (Death Penalty Law) the Court found accused HENRY ARPON, GUILTY beyond reasonable doubt of ONE COUNT OF STATUTORY RAPE and SEVEN COUNTS OF RAPE charged under the informations and sentenced to suffer the maximum penalty of DEATH, and to indemnify the victim, [AAA] the amount of Fifty Thousand (P50,000.00) Pesos for each count of Rape and pay moral damages in the amount of Fifty Thousand (P50,000.00) Pesos and pay the cost.[24][24] (Emphases in the original.)

 

 

The court a quo found more credible the testimony of AAA.  The fact that AAA was in tears when she testified convinced the trial court of the truthfulness of her rape charges against the accused-appellant.  If there were inconsistencies in AAA’s testimony, the trial court deemed the same understandable considering that AAA was pitted against a learned opposing counsel.  The delay in the reporting of the rape incidents was not also an indication that the charges were fabricated.  Moreover, the trial court ruled that the findings of the medico-legal officer confirmed that she was indeed raped.  The accused-appellant’s defense of alibi was likewise disregarded by the trial court, declaring that it was not physically impossible for him to be present in XXX at any time of the day after working hours while he was working in Tacloban City.  The trial court stated that the accused-appellant was positively identified by AAA as the person who sexually abused her and she held no grudge against him.  The trial court imposed the penalty of death as it found that AAA was less than 18 years old at the time of the commission of the rape incidents and the accused-appellant was her uncle, a relative by consanguinity within the third civil degree.  The trial court also appreciated against the accused-appellant the aggravating circumstances of abuse of confidence and nighttime.

 

The accused-appellant filed a Motion for Reconsideration[25][25] of the RTC Decision, asserting that the trial court failed to consider his minority as a privileged mitigating circumstance.  As stated in his direct examination, the accused-appellant claimed that he was born on February 23, 1982, such that he was only 13 and 17 years old when the incidents of rape allegedly occurred in 1995 and 1999, respectively.  In a Resolution[26][26] dated November 6, 2002, the trial court denied the accused-appellant’s motion, holding that the latter failed to substantiate with clear and convincing evidence his allegation of minority. 

 

The cases were elevated to the Court on automatic review and were docketed as G.R. Nos. 165201-08.[27][27]  The parties then filed their respective briefs.[28][28]  On February 7, 2006, we resolved[29][29] to transfer the cases to the Court of Appeals pursuant to our ruling in People v. Mateo.[30][30]  The cases were docketed in the appellate court as CA-G.R. CR.-H.C. No. 00560.

 

The Decision of the Court of Appeals

 

On February 8, 2008, the Court of Appeals promulgated its assailed decision, decreeing thus:

 

WHEREFORE, the Decision dated September 9, 2002 of the Regional Trial Court, Branch 7, Tacloban City in Criminal Case Nos. 2001-01-46 to 2001-01-53 is AFFIRMED with modification awarding exemplary damages to [AAA] in the amount of Twenty[-]Five Thousand (P25,000.00) Pesos for each count of rape and clarification that the separate award of Fifty Thousand (P50,000.00) Pesos as moral damages likewise pertains to each count of rape.  The death penalty imposed is reduced to reclusion perpetua in accord with Rep. Act No. 9346.[31][31]

 

 

The Court of Appeals adjudged that the inconsistencies pointed out by the accused-appellant in the testimony of AAA were not sufficient to discredit her.  The appellate court held that the exact age of AAA when the incidents of rape occurred no longer mattered, as she was still a minor at the time.  More significant was her “straightforward, categorical and candid testimony” that she was raped eight times by the accused-appellant.  The Court of Appeals also agreed with the ruling of the RTC that AAA’s charges of rape conformed with the physical evidence and the accused-appellant’s uncorroborated defense of alibi could not stand against the positive identification made by AAA. 

 

As regards the attendant circumstances, the Court of Appeals ruled that the relationship of the accused-appellant to AAA was both alleged in the informations and admitted by the accused-appellant.  The appellate court, however, differed in appreciating against the accused-appellant the qualifying circumstance of AAA’s minority.  The lone testimony of AAA on the said circumstance was held to be an insufficient proof therefor.  The aggravating circumstance of nighttime was also ruled to be inapplicable as it was not shown that the same was purposely sought by the accused-appellant or that it facilitated the commission of the crimes of rape.  In view of the presence of the qualifying circumstance of relationship, the Court of Appeals awarded exemplary damages in favor of AAA.       

 

The accused-appellant filed a Notice of Appeal[32][32] of the above decision and the same was given due course by the Court of Appeals in a Resolution[33][33] dated May 27, 2008. 

 

On November 17, 2008, the Court resolved to accept the appeal and required the parties to file their respective supplemental briefs, if they so desire, within 30 days from notice.[34][34]  Thereafter, in a Manifestation and Motion[35][35] filed on December 24, 2008, the plaintiff-appellee, through the Office of the Solicitor General, prayed that it be excused from filing a supplemental brief.  On February 3, 2009, the accused-appellant submitted a Supplemental Brief.[36][36]

 

The Issues

 

In the accused-appellant’s brief, the following issues were invoked:

 

I

 

THE COURT A QUO GRAVELY ERRED IN CONVICTING THE ACCUSED-APPELLANT OF THE CRIMES CHARGED DESPITE THE FAILURE OF THE PROSECUTION TO PROVE HIS GUILT BEYOND REASONABLE DOUBT.

 

II

 

THE COURT A QUO GRAVELY ERRED IN GIVING WEIGHT AND CREDENCE TO THE INCREDIBLE AND INCONSISTENT TESTIMONY OF THE PRIVATE COMPLAINANT.

 

III

 

THE COURT A QUO GRAVELY ERRED IN IMPOSING THE SUPREME PENALTY OF DEATH.[37][37]

 

 

The accused-appellant insists that it was error on the part of the RTC to give weight to the incredible testimony of AAA.  He alleges that AAA could not state with consistency the exact date when she was first supposedly raped, as well as her age at that time.  The accused-appellant also avers that AAA could not remember the dates of the other incidents of rape charged, all of which were allegedly described in a uniform manner.  Contrary to the judgment of the Court of Appeals, the accused-appellant posits that the above inconsistencies cannot merely be discounted as insignificant.  He further insists that the qualifying circumstances of AAA’s minority and her relationship to the accused-appellant were not duly proven by the prosecution.  The accused-appellant, thus, prays for a judgment of acquittal.

 

The Ruling of the Court

 

After a careful examination of the records of this case, the Court resolves to deny the appeal, but with a modification of the penalties and the amount of indemnities awarded. 

 

To recall, the RTC and the Court of Appeals found the accused-appellant guilty of one (1) count of statutory rape and seven (7) counts of qualified rape.

 

Under the information in Criminal Case No. 2000-01-46, the first incident of rape was alleged to have occurred in 1995 when AAA was only eight years old.  However, the accused-appellant points out that the prosecution failed to substantiate the said fact as AAA’s testimony thereon was too inconsistent and incredible to be worthy of any belief.  He explains that AAA initially claimed that she was raped for the first time when she was eight years old.  Nonetheless, during her testimony regarding the incidents of rape that occurred in July 1999, she said that the accused did the same thing that he did to her when she was only seven years old.  On her redirect examination, AAA then stated that she was first raped in 1998 when she was eleven (11) years old.      

 

Presently, Article 266-A of the Revised Penal Code defines the crime of rape by sexual intercourse as follows:

 

ART.  266-A. Rape, When and How Committed.  – Rape is committed –

 

1. By a man who shall have carnal knowledge of a woman under any of the following circumstances:

 

a. Through force, threat or intimidation;

 

b. When the offended party is deprived of reason or is otherwise unconscious;

 

c. By means of fraudulent machination or grave abuse of authority;

 

d. When the offended party is under twelve (12) years of age or is demented, even though none of the circumstances mentioned above be present.

 

 

In particular, “Article 266-A(1)(d) spells out the definition of the crime of statutory rape, the elements of which are: (1) that the offender had carnal knowledge of a woman; and (2) that such a woman is under twelve (12) years of age or is demented.”[38][38]

 

The above provision came into existence by virtue of Republic Act No. 8353,[39][39] or the Anti-Rape Law of 1997, which took effect on October 22, 1997.[40][40]  Prior to this date, the crime of rape was penalized under Article 335 of the Revised Penal Code,[41][41] which provides:

 

ART. 335.        When and how rape is committed. — Rape is committed by having carnal knowledge of a woman under any of the following circumstances:

 

1.         By using force or intimidation;

2.         When the woman is deprived of reason or otherwise unconscious; and

3.         When the woman is under twelve years of age or is demented.

 

 

 In People v. Macafe,[42][42] we explained the concept of statutory rape under Article 335 of the Revised Penal Code in this wise:

 

Rape under paragraph 3 of [Article 335] is termed statutory rape as it departs from the usual modes of committing rape.  What the law punishes in statutory rape is carnal knowledge of a woman below twelve years old.  Hence, force and intimidation are immaterial; the only subject of inquiry is the age of the woman and whether carnal knowledge took place.  The law presumes that the victim does not and cannot have a will of her own on account of her tender years; the child’s consent is immaterial because of her presumed incapacity to discern evil from good.[43][43]  (Emphasis ours.)

 

 

Manifestly, the elements of statutory rape in the above-mentioned provisions of law are essentially the same.  Thus, whether the first incident of rape charged in this case did occur in 1995, i.e., before the amendment of Article 335 of the Revised Penal Code, or in 1998, after the effectivity of the Anti-Rape Law of 1997, the prosecution has the burden to establish the fact of carnal knowledge and the age of AAA at the time of the commission of the rape. 

 

Contrary to the posturing of the accused-appellant, “the date of the commission of the rape is not an essential element of the crime of rape, for the gravamen of the offense is carnal knowledge of a woman.”[44][44]  “Inconsistencies and discrepancies in details which are irrelevant to the elements of the crime are not grounds for acquittal.”[45][45]       

 

As regards the first incident of rape, the RTC credited with veracity the substance of AAA’s testimony.  On this matter, we reiterate our ruling in People v. Condes[46][46] that:

 

Time and again, the Court has held that when the decision hinges on the credibility of witnesses and their respective testimonies, the trial court’s observations and conclusions deserve great respect and are often accorded finality. The trial judge has the advantage of observing the witness’ deportment and manner of testifying. Her “furtive glance, blush of conscious shame, hesitation, flippant or sneering tone, calmness, sigh, or the scant or full realization of an oath” are all useful aids for an accurate determination of a witness’ honesty and sincerity. The trial judge, therefore, can better determine if witnesses are telling the truth, being in the ideal position to weigh conflicting testimonies. Unless certain facts of substance and value were overlooked which, if considered, might affect the result of the case, its assessment must be respected for it had the opportunity to observe the conduct and demeanor of the witnesses while testifying and detect if they were lying.  The rule finds an even more stringent application where said findings are sustained by the [Court of Appeals].[47][47]

 

 In the instant case, we have thoroughly scrutinized the testimony of AAA and we found no cogent reason to disturb the finding of the RTC that the accused-appellant indeed committed the first incident of rape charged.  AAA positively identified the accused-appellant as the perpetrator of the dastardly crimes.  With tears in her eyes, she clearly and straightforwardly narrated the said incident of rape as follows:

 

[PROSECUTOR EDGAR SABARRE]

 

Q:        Do you recall of any unusual incident that happened when you were still 8 years old?

 

[AAA]

 

A:        There was but I cannot anymore remember the exact month and date.

 

Q:        Just tell what happened to you when you were still 8 years old?

A:        I was raped by Tiyo Henry.

 

Q:        How did he rape you?

A:        He stripped me of my panty, shorts and shirts.

 

Q:        Do you remember what place did he rape you?

A:        Yes, sir in our house.

 

Q:        Who were the persons present then at that time?

A:        My younger brother and I.

 

Q:        About your mother and step father where were they?

A:        In the ricefield.

 

PROS. SABARRE:

 

           May we make it of record that the witness is crying.

 

COURT:

 

           Have it on record.

 

PROS. SABARRE:

 

Q:        Do you still recall was it in the morning, in the afternoon or evening?

A:        In the afternoon.

 

           x x x x

 

Q:        After your clothes and [panty] were taken off by accused what did he do to you next if any?

A:        He went on top of me.

 

Q:        Was he still with his clothes on or already naked?

A:        He has still clothes on, he did not take off his pants, he only pulled down the zipper.

 

Q:        And when he pulled down the zipper and went on top of you what did he do next if any?

A:        He was pumping on me.

 

Q:        Did he pull out his organ?

A:        Yes, sir.

 

Q:        And where did he place his organ?

A:        In my vagina.

 

Q:        When he kept on pumping what did you feel?

A:        Pain.[48][48]

 

 

The above testimony of AAA was also corroborated by the Medico-Legal Report of Dr. Capungcol and Dr. Gagala, who found “old, healed, incomplete” hymenal lacerations on the private part of AAA.  “[W]hen the testimony of a rape victim is consistent with the medical findings, there is sufficient basis to conclude that there has been carnal knowledge.”[49][49] 

 

Anent the five incidents of rape that were alleged to have been committed in July 1999, the Court disagrees with the ruling of the trial court that all five counts were proven with moral certainty.  The testimony of AAA on the said incidents is as follows:

 

Q:        How many times did [the accused-appellant] rape you in July 1999?

A:        Five times.

 

Q:        Was it in the daytime or night time?

A:        Night time.

 

Q:        Was it in different nights or on the same night?

A:        Different nights.

 

Q:        Who were present then at that time when he raped you five times?

A:        My Kuya and other siblings.

 

Q:        You have companions why were you raped?

A:        Because they were sleeping.

 

Q:        How did he rape you on that July night for five times, will you please narrate to the court?

A:        Because they have been drinking, he came to our house, pulled out my panty and went on top of me.

 

Q:        With whom was he drinking?

A:        With my step father.

 

Q:        Where did they drink?

A:        In our neighbor.

 

Q:        When he took off your shorts and panty what was the accused wearing at that time?

A:        I do not know because I could not see since it was night time.

 

Q:        When he was on top of [you] was he still wearing something?

A:        No, sir.

 

Q:        What did he do with his penis?

A:        He made me hold it.

 

Q:        Then after he made you hold it what did he do with it?

A:        He left.

 

           x x x x

 

ATTY. SABARRE:

 

Q:        You said you were raped on that July evening for five nights how did he rape you?

A:        (witness did not answer)

 

PROS. SABARRE:

 

           Make it of record that the witness is crying again.

 

Q:        Why are you crying?

A:        I am angry and hurt.

 

PROS. SABARRE:

 

           Your honor please may I be allowed to suspend the proceeding considering that the witness is psychologically incapable of further proceeding.

 

           x x x x

 

Q:        I have asked you how did the accused rape you will you please narrate the whole incident to this honorable court?

A:        The same that he did when I was 8 years old, he went on top of me.

 

Q:        What was the same thing you are talking about?

A:        He pulled down my panty and went on top of me and pump.

 

Q:        When he pump what did you feel?

A:        Pain.

 

 

 

COURT:

 

           Why did you feel pain?

 

A:        He placed his penis inside my vagina, everytime I urinate I feel pain.

 

ATTY. SABARRE;

 

           How did you recognize that it was Henry Arpon when it was night time?

 

A:        It was a moonlight night and our window was only covered by cloth as cover.[50][50]       

 

 

From the above testimony, AAA merely described a single incident of rape.  She made no reference whatsoever to the other four instances of rape that were likewise supposedly committed in the month of July 1999.  

 

The same is also true for the two (2) counts of rape allegedly committed in August 1999.  AAA narrated only one incident of rape in this manner:

 

Q:        How many times did [the accused-appellant] rape you in the month of August 1999?

A:        Two times.

 

Q:        Was it during day time or night time?

A:        Nighttime.

 

Q:        How did he rape you again that August 1999?

A:        He kissed me.

 

Q:        After kissing you what did he do next?

A:        He took off his shirts.

 

Q:        After he took off his shirts what happened?

A:        He went on top of me and pump.

 

Q:        When he made a pumping motion on top of you what did you feel?

A:        My vagina was painful and also my chest because he was heavy.

 

Q:        Why did you feel pain in your vagina?

A:        Because he was raping me.

 

Q:        Did his penis penetrate your vagina?

A:        I do not know.

 

Q:        If this Henry Arpon is present now in court could you recognize him?

A:        Yes, sir.

 

Q:        Where is he?

A:        That man (witness pointing a detention prisoner when asked his name answered Henry Arpon).[51][51]

 

“It is settled that each and every charge of rape is a separate and distinct crime that the law requires to be proven beyond reasonable doubt. The prosecution’s evidence must pass the exacting test of moral certainty that the law demands to satisfy the burden of overcoming the appellant’s presumption of innocence.”[52][52]  Thus, including the first incident of rape, the testimony of AAA was only able to establish three instances when the accused-appellant had carnal knowledge of her. 

 

The allegation of the accused-appellant that the testimony of AAA described the incidents of rape in a uniform manner does not convince this Court.  To our mind, AAA’s narration of the sexual abuses committed by the accused-appellant contained an adequate recital of the evidentiary facts constituting the crime of rape, i.e., that he placed his organ in her private part.[53][53]  “Etched in our jurisprudence is the doctrine that a victim of a savage crime cannot be expected to mechanically retain and then give an accurate account of every lurid detail of a frightening experience — a verity born[e] out of human nature and experience.”[54][54]

 

We uphold the ruling of the RTC that the accused-appellant’s defense of alibi deserves scant consideration.  “Alibi is an inherently weak defense because it is easy to fabricate and highly unreliable.  To merit approbation, the accused must adduce clear and convincing evidence that he was in a place other than the situs criminis at the time the crime was committed, such that it was physically impossible for him to have been at the scene of the crime when it was committed.”[55][55]  “[S]ince alibi is a weak defense for being easily fabricated, it cannot prevail over and is worthless in the face of the positive identification by a credible witness that an accused perpetrated the crime.”[56][56]

 

In the instant case, we quote with approval the findings of fact of the trial court that:

 

The distance of [XXX] to Tacloban City is just a few kilometers and can be negotiated by passenger bus in less than one (1) hour, hence, it is not impossible for the accused to be present in [XXX] at any time of the day after working hours while working in Tacloban.  Besides, the accused has his day off every Sunday, which according to him he spent in [XXX],Leyte.

 

The accused was positively identified by the victim as the person who sexually molested her beginning that afternoon of 1995, and subsequently thereafter in the coming years up to August 1999.  She can not be mistaken on the identity of the accused, because the first sexual molestation happened during the daytime, besides, she is familiar with him being her uncle, the brother of her mother.[57][57]

 

 

          Furthermore, the Court rejects the contention of the accused-appellant that AAA may have been prompted to falsely testify against him (accused-appellant) in view of the latter’s quarrel with AAA’s parents when he refused to work with them in the rice fields.[58][58]  Aside from being uncorroborated, we find the same specious and implausible.  “Where the charges against the appellant involve a heinous offense, a minor disagreement, even if true, does not amount to a sufficient justification for dragging a young girl’s honor to a merciless public scrutiny that a rape trial brings in its wake.”[59][59] 

 

          As to the accused-appellant’s objection that there was no proof of the age of the victim, we affirm the trial court’s finding that the prosecution sufficiently established the age of AAA when the incidents of rape were committed.  The testimony of AAA that she was born on November 1, 1987,[60][60] the voluntary stipulation of the accused, with assistance of counsel, regarding the minority of the victim during pre-trial and his testimony regarding his recollection of the age of the victim,[61][61] his own niece, all militate against accused-appellant’s theory.  In People v. Pruna,[62][62] the Court established the guidelines in appreciating age, either as an element of the crime or as a qualifying circumstance, as follows:

 

1.  The best evidence to prove the age of the offended party is an original or certified true copy of the certificate of live birth of such party.

 

2.  In the absence of a certificate of live birth, similar authentic documents such as baptismal certificate and school records which show the date of birth of the victim would suffice to prove age.

 

3.  If the certificate of live birth or authentic document is shown to have been lost or destroyed or otherwise unavailable, the testimony, if clear and credible, of the victim’s mother or a member of the family either by affinity or consanguinity who is qualified to testify on matters respecting pedigree such as the exact age or date of birth of the offended party pursuant to Section 40, Rule 130 of the Rules on Evidence shall be sufficient under the following circumstances:

 

a.  If the victim is alleged to be below 3 years of age and what is sought to be proved is that she is less than 7 years old;

 

b.  If the victim is alleged to be below 7 years of age and what is sought to be proved is that she is less than 12 years old;

 

c.  If the victim is alleged to be below 12 years of age and what is sought to be proved is that she is less than 18 years old.

 

4.  In the absence of a certificate of live birth, authentic document, or the testimony of the victim’s mother or relatives concerning the victim’s age, the complainant’s testimony will suffice provided that it is expressly and clearly admitted by the accused.

 

5.  It is the prosecution that has the burden of proving the age of the offended party. The failure of the accused to object to the testimonial evidence regarding age shall not be taken against him. (Emphases ours.)

 

 

Notably, in its Decision, the trial court observed that at the time she took the witness stand (when she was 14 years old), the victim, as to her body and facial features, was indeed a minor.[63][63] 

 

          That the carnal knowledge in this case was committed through force, threat or intimidation need no longer be belabored upon.  “[I]n rape committed by close kin, such as the victim’s father, step-father, uncle, or the common-law spouse of her mother, it is not necessary that actual force or intimidation be employed.  Moral influence or ascendancy takes the place of violence and intimidation.”[64][64]

Penalties

 

On the penalties imposable in the instant case, the former Article 335 of the Revised Penal Code, as amended, punishes the crime of rape with reclusion perpetua.  The sixth paragraph thereof also provides that:

 

         The death penalty shall also be imposed if the crime of rape is committed with any of the following attendant circumstances:

 

1. when the victim is under eighteen (18) years of age and the offender is a parent, ascendant, step-parent, guardian, relative by consanguinity or affinity within the third civil degree, or the common law-spouse of the parent of the victim. (Emphases ours.)

 

 

          Similarly, the present Article 266-B of the Revised Penal Code relevantly recites:

 

ART. 266-B. Penalties. – Rape under paragraph 1 of the next preceding article shall be punished by reclusion perpetua.

x x x x

 

The death penalty shall also be imposed if the crime of rape is committed with any of the following aggravating/qualifying circumstances:

1. When the victim is under eighteen (18) years of age and the offender is a parent, ascendant, step-parent, guardian, relative by consanguinity or affinity within the third civil degree, or the common law spouse of the parent of the victim. (Emphases ours.)

 

          The Court finds that the circumstances of minority and relationship qualify the three (3) counts of rape committed by the accused-appellant.  “As a special qualifying circumstance of the crime of rape, the concurrence of the victim’s minority and her relationship to the accused must be both alleged and proven beyond reasonable doubt.”[65][65]  In the instant case, the informations alleged that AAA was less than eighteen (18) years of age when the incidents of rape occurred and the accused-appellant is her uncle, a relative by consanguinity within the third civil degree.  The said circumstances were also admitted by the accused-appellant during the pre-trial conference of the case and again admitted by him during his testimony.[66][66] 

 

In People v. Pepito,[67][67] the Court explained that “[t]he purpose of entering into a stipulation or admission of facts is to expedite trial and to relieve the parties and the court, as well, of the costs of proving facts which will not be disputed on trial and the truth of which can be ascertained by reasonable inquiry.  These admissions during the pre-trial conference are worthy of credit.  Being mandatory in nature, the admissions made by appellant therein must be given weight.”  Consequently, for the first incident of rape, regardless of whether the same occurred in 1995 or in 1998, the imposition of the death penalty is warranted.  For the second and third counts of rape, the imposable penalty is also death.   

 

          Nonetheless, a reduction of the above penalty is in order.

 

          The RTC and the Court of Appeals failed to consider in favor of the accused-appellant the privileged mitigating circumstance of minority.  Although this matter was not among the issues raised before the Court, we still take cognizance of the same in accordance with the settled rule that “[i]n a criminal case, an appeal throws open the entire case wide open for review, and the appellate court can correct errors, though unassigned, that may be found in the appealed judgment.”[68][68]    

 

          Pertinently, the first paragraph of Section 7 of Republic Act No. 9344, otherwise known as the “Juvenile Justice and Welfare Act of 2006,” provides for the rule on how to determine the age of a child in conflict with the law,[69][69] viz:

 

SEC. 7. Determination of Age. — The child in conflict with the law shall enjoy the presumption of minority.  He/She shall enjoy all the rights of a child in conflict with the law until he/she is proven to be eighteen (18) years of age or older.  The age of a child may be determined from the child’s birth certificate, baptismal certificate or any other pertinent documents.  In the absence of these documents, age may be based on information from the child himself/herself, testimonies of other persons, the physical appearance of the child and other relevant evidence.  In case of doubt as to the age of the child, it shall be resolved in his/her favor.

 

 

          Furthermore, in Sierra v. People,[70][70] we clarified that, in the past, the Court deemed sufficient the testimonial evidence regarding the minority and age of the accused provided the following conditions concur, namely: “(1) the absence of any other satisfactory evidence such as the birth certificate, baptismal certificate, or similar documents that would prove the date of birth of the accused; (2) the presence of testimony from accused and/or a relative on the age and minority of the accused at the time of the complained incident without any objection on the part of the prosecution; and (3) lack of any contrary evidence showing that the accused’s and/or his relatives’ testimonies are untrue.”[71][71]

 

          In the instant case, the accused-appellant testified that he was born on February 23, 1982 and that he was only 13 years old when the first incident of rape allegedly happened in 1995.[72][72]  Other than his testimony, no other evidence was presented to prove the date of his birth.  However, the records of this case show neither any objection to the said testimony on the part of the prosecution, nor any contrary evidence to dispute the same.  Thus, the RTC and the Court of Appeals should have appreciated the accused-appellant’s minority in ascertaining the appropriate penalty.

 

          Although the acts of rape in this case were committed before Republic Act No. 9344 took effect on May 20, 2006, the said law is still applicable given that Section 68 thereof expressly states:

 

SEC. 68. Children Who Have Been Convicted and are Serving Sentences. — Persons who have been convicted and are serving sentence at the time of the effectivity of this Act, and who were below the age of eighteen (18) years at the time of the commission of the offense for which they were convicted and are serving sentence, shall likewise benefit from the retroactive application of this Act.  They shall be entitled to appropriate dispositions provided under this Act and their sentences shall be adjusted accordingly.  They shall be immediately released if they are so qualified under this Act or other applicable law.

 

 

          People v. Sarcia[73][73] further stressed that “[w]ith more reason, the Act should apply to [a] case wherein the conviction by the lower court is still under review.”

 

          Thus, in the matter of assigning criminal responsibility, Section 6 of Republic Act No. 9344 is explicit in providing that:

 

SEC. 6.  Minimum Age of Criminal Responsibility. — A child fifteen (15) years of age or under at the time of the commission of the offense shall be exempt from criminal liability.  However, the child shall be subjected to an intervention program pursuant to Section 20 of the Act.

 

A child above fifteen (15) years but below eighteen (18) years of age shall likewise be exempt from criminal liability and be subjected to an intervention program, unless he/she has acted with discernment, in which case, such child shall be subjected to the appropriate proceedings in accordance with this Act.

 

The exemption from criminal liability herein established does not include exemption from civil liability, which shall be enforced in accordance with existing laws.  (Emphases ours.)

 

 

          As held in Sierra, the above provision effectively modified the minimum age limit of criminal irresponsibility in paragraphs 2 and 3 of the Revised Penal Code, as amended,[74][74]i.e., from ‘under nine years of age’ and ‘above nine years of age and under fifteen’ (who acted without discernment) – to ‘fifteen years old or under’ and ‘above fifteen but below 18’ (who acted without discernment) in determining exemption from criminal liability.”[75][75] 

          Accordingly, for the first count of rape, which in the information in Criminal Case No. 2000-01-46 was allegedly committed in 1995, the testimony of the accused-appellant sufficiently established that he was only 13 years old at that time.  In view of the failure of the prosecution to prove the exact date and year of the first incident of rape, i.e., whether the same occurred in 1995 or in 1998 as previously discussed, any doubt therein “should be resolved in favor of the accused, it being more beneficial to the latter.”[76][76]  The Court, thus, exempts the accused-appellant from criminal liability for the first count of rape pursuant to the first paragraph of Section 6 of Republic Act No. 9344.  The accused-appellant, nevertheless, remains civilly liable therefor.   

 

          For the second and third counts of rape that were committed in the year 1999, the accused-appellant was already 17 years old.  We likewise find that in the said instances, the accused-appellant acted with discernment.  In Madali v. People,[77][77] the Court had the occasion to reiterate that “[d]iscernment is that mental capacity of a minor to fully appreciate the consequences of his unlawful act.  Such capacity may be known and should be determined by taking into consideration all the facts and circumstances afforded by the records in each case.”  In this case, the fact that the accused-appellant acted with discernment was satisfactorily established by the testimony of AAA, which we had already found to be credible.  Verily, AAA testified that she at first did not tell anybody about the sexual assault she suffered at the hands of the accused-appellant because the latter told her that he would kill her mother if she did so.  That the accused-appellant had to threaten AAA in an effort to conceal his dastardly acts only proved that he knew full well that what he did was wrong and that he was aware of the consequences thereof.

 

          Accordant with the second paragraph of Article 68 of the Revised Penal Code, as amended, and in conformity with our ruling in Sarcia, when the offender is a minor under eighteen (18) years of age, “the penalty next lower than that prescribed by law shall be imposed, but always in the proper period.  However, for purposes of determining the proper penalty because of the privileged mitigating circumstance of minority, the penalty of death is still the penalty to be reckoned with.”  Thus, for the second and third counts of rape, the proper penalty imposable upon the accused-appellant is reclusion perpetua for each count.

 

          Had the trial court correctly appreciated in favor of the accused-appellant the circumstance of his minority, the latter would have been entitled to a suspension of sentence for the second and third counts of rape under Section 38 of Republic Act No. 9344, which reads:

 

SEC. 38.  Automatic Suspension of Sentence. — Once the child who is under eighteen (18) years of age at the time of the commission of the offense is found guilty of the offense charged, the court shall determine and ascertain any civil liability which may have resulted from the offense committed.  However, instead of pronouncing the judgment of conviction, the court shall place the child in conflict with the law under suspended sentence, without need of application. Provided, however, That suspension of sentence shall still be supplied even if the juvenile is already eighteen years (18) of age or more at the time of the pronouncement of his/her guilt.

 

Upon suspension of sentence and after considering the various circumstances of the child, the court shall impose the appropriate disposition measures as provided in the Supreme Court Rule on Juvenile in Conflict with the Law.

 

 

          Be that as it may, the suspension of sentence may no longer be applied in the instant case given that the accused-appellant is now about 29 years of age and Section 40 of Republic Act No. 9344 puts a limit to the application of a suspended sentence, namely, when the child reaches a maximum age of 21.  The said provision states:

 

SEC. 40.  Return of the Child in Conflict with the Law to Court. — If the court finds that the objective of the disposition measures imposed upon the child in conflict with the law have not been fulfilled, or if the child in conflict with the law has willfully failed to comply with the conditions of his/her disposition or rehabilitation program, the child in conflict with the law shall be brought before the court for execution of judgment.  

 

If said child in conflict with the law has reached eighteen (18) years of age while under suspended sentence, the court shall determine whether to discharge the child in accordance with this Act, to order execution of sentence, or to extend the suspended sentence for a certain specified period or until the child reaches the maximum age of twenty-one (21) years.  (Emphasis ours.)

 

 

Nonetheless, the disposition set forth under Section 51 of Republic Act No. 9344 is warranted in the instant case, to wit:

 

SEC. 51.  Confinement of Convicted Children in Agricultural Camps and Other Training Facilities. — A child in conflict with the law may after conviction and upon order of the court, be made to serve his/her sentence, in lieu of confinement in a regular penal institution, in an agricultural camp and other training facilities that may be established, maintained, supervised and controlled by the [Bureau of Corrections], in coordination with the [Department of Social Welfare and Development].

 

 

 Additionally, the civil liability of the accused-appellant for the second and third incidents of rape shall not be affected by the above disposition and the same shall be enforced in accordance with law and the pronouncements in the prevailing jurisprudence.

 

Civil Liability

 

          The Court recently ruled in People v. Masagca, Jr.[78][78] that “[c]ivil indemnity is mandatory when rape is found to have been committed.  Based on prevailing jurisprudence, we affirm the award of P75,000.00 to the rape victim as civil indemnity for each count.”  We also explained in Sarcia that “[t]he litmus test x x x in the determination of the civil indemnity is the heinous character of the crime committed, which would have warranted the imposition of the death penalty, regardless of whether the penalty actually imposed is reduced to reclusion perpetua.”[79][79]  The trial court’s award of civil indemnity of P50,000.00 for each count of rape is therefore increased to P75,000.00 for each of the three (3) counts of rape committed in the instant case.

 

            Anent the award of moral damages, the same is justified “without need of proof other than the fact of rape because it is assumed that the victim has suffered moral injuries [from the experience she underwent].”[80][80]  We also increase the trial court’s award of P50,000.00 to P75,000.00 for each of the three (3) counts of rape herein established in keeping with the recent case law.[81][81]

 

          Lastly, we affirm the Court of Appeals’ award of exemplary damages.  As held in People v. Llanas, Jr.,[82][82] “[t]he award of exemplary damages is also proper not only to deter outrageous conduct, but also in view of the aggravating circumstances of minority and relationship surrounding the commission of the offense, both of which were alleged in the information and proved during the trial.”  The appellate court’s award of P25,000.00 as exemplary damages is raised to P30,000.00 for each of the three (3) counts of rape in keeping with the current jurisprudence on the matter.[83][83]

 

          WHEREFORE, in light of the foregoing, the appeal is DENIED.  The Decision dated February 8, 2008 of the Court of Appeals in CA-G.R. CR.-H.C. No. 00560 is hereby AFFIRMED with the following MODIFICATIONS:

 

(5)                     For the first count of rape herein established, the accused-appellant Henry Arpon y Juntilla is hereby EXEMPTED from criminal liability.

 

(6)                     For the second and third counts of rape, the accused-appellant is found GUILTY beyond reasonable doubt of two (2) counts of QUALIFIED RAPE and is hereby sentenced to suffer the penalty of reclusion perpetua for each count. 

 

(7)                     As to the civil liability, the accused-appellant is ORDERED to pay AAA for each of the three (3) counts of rape P75,000.00 as civil indemnity, P75,000.00 as moral damages and P30,000.00 as exemplary damages, plus legal interest on all damages awarded at the legal rate of 6% from the date of finality of this Decision. 

 

(8)                     The case is hereby REMANDED to the court of origin for its appropriate action in accordance with Section 51 of Republic Act No. 9344.

 

No costs.

 

SO ORDERED.

 

 

 

 

 

 

TERESITA J. LEONARDO-DE CASTRO

Associate Justice

 

 

 

WE CONCUR:

 

 

 

RENATO C. CORONA

Chief Justice

Chairperson

 

 

 

 

 

LUCAS P. BERSAMIN

Associate Justice

MARIANO C. DEL CASTILLO

Associate Justice

 

 

 

 

 

 

 

 

 

 

MARTIN S. VILLARAMA, JR.

Associate Justice

 

 

 

CERTIFICATION

Pursuant to Section 13, Article VIII of the Constitution, I certify that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division.

 

 

 

RENATO C. CORONA

         Chief Justice         

 


 


[1][1]           Rollo, pp. 4-28; penned by Associate Justice Amy C. Lazaro-Javier with Associate Justices Pampio A. Abarintos and Francisco P. Acosta, concurring.

[2][2]           CA rollo, pp. 74-89; penned by Judge Crisostomo L. Garrido.

[3][3]           The real name or any other information tending to establish the identity of the private complainant and those of her immediate family or household members shall be withheld in accordance with Republic Act No. 7610, An Act Providing for Stronger Deterrence and Special Protection Against Child Abuse, Exploitation and Discrimination, Providing Penalties for its Violation, and for Other Purposes; Republic Act No. 9262, An Act Defining Violence Against Women and Their Children, Providing for Protective Measures for Victims, Prescribing Penalties Therefor, and For Other Purposes; Section 40 of A.M. No. 04-10-11-SC, known as “Rule on Violence Against Women and Their Children” effective November 15, 2004; and People v. Cabalquinto, G.R. No. 167693, September 19, 2006, 502 SCRA 419.

                                Thus, the private offended party shall be referred to as AAA.  The initials BBB shall refer to the stepfather of the private offended party.  CCC shall stand for her mother, while DDD shall indicate her younger sister.  XXX shall denote the place where the crime was allegedly committed.

[4][4]           From the records of the case, i.e., the Sworn Statement executed by AAA before the police on October 25, 1999 (Records, Vol. VIII, p. 7) and the transcript of the preliminary investigation conducted by the Municipal Trial Court (Records, Vol. VIII, pp. 11-14), it appears that AAA initially incriminated two individuals for the incidents of rape allegedly committed against her, namely the accused-appellant and his brother Henrile Arpon.  Subsequently, it was mentioned during the trial of the cases before the RTC that Henrile Arpon was already dead.  (See TSN, July 10, 2002, p. 3.)

[5][5]           Records, Vol. I, p. 1.

[6][6]          Id., Vol. II, p. 1.

[7][7]          Id., Vol. III, p. 1.

[8][8]          Id., Vol. IV, p. 1.

[9][9]          Id., Vol. V, p. 1.

[10][10]        Id., Vol. VI, p. 1.

[11][11]         Id., Vol. VII, p. 1.

[12][12]        Id., Vol. VIII, p. 1.

[13][13]        Id. at 28.

[14][14]        Id. at 30.

[15][15]         TSN, May 21, 2002, p. 4.

[16][16]        Id. at 5-6.

[17][17]        Id. at 7-9.

[18][18]        Id. at 10-11.

[19][19]         Records, Vol. VIII, p. 8.

[20][20]        Id. at 9.

[21][21]        Id. at 8.

[22][22]         TSN, August 1, 2002, pp. 3-6.

[23][23]        Id. at 7-8.

[24][24]         Records, Vol. VIII, pp. 77-78.

[25][25]        Id. at 81-82.

[26][26]        Id. at 89-90.

[27][27]         CA rollo, p. 46.

[28][28]        Id. at 56-73, 98A-127.

[29][29]        Id. at 160.

[30][30]         G.R. Nos. 147678-87, July 4, 2004, 433 SCRA 640.

[31][31]         Rollo, pp. 27-28.

[32][32]        Id. at 29-31.

[33][33]        Id. at 32.

[34][34]        Id. at 38.

[35][35]        Id. at 39-41.

[36][36]        Id. at 43-48.

[37][37]         CA rollo, pp. 58-59.

[38][38]         People v. Padilla, G.R. No. 182917, June 8, 2011.

[39][39]         An Act Expanding the Definition of the Crime of Rape, Reclassifying the Same as a Crime Against Persons, Amending for the Purpose Act No. 3815, as amended, Otherwise Known as the Revised Penal Code and for Other Purposes.

[40][40]         People v. Lindo, G.R. No. 189818, August 9, 2010, 627 SCRA 519, 526.

[41][41]         As amended by Republic Act No. 7659, entitled An Act to Impose the Death Penalty on Certain Heinous Crimes Amending for that Purpose the Revised Penal Code, as Amended, Other Special Laws, and for Other Purposes.  The said law took effect on December 31, 1993.

[42][42]         G.R. No. 185616, November 24, 2010, 636 SCRA 221.

[43][43]        Id. at 228-229.

[44][44]         People v. Mercado, G.R. No. 189847, May 30, 2011.

[45][45]         People v. Maglente, G.R. No. 179712, June 27, 2008, 556 SCRA 447, 464-465.

[46][46]         G.R. No. 187077, February 23, 2011, 644 SCRA 312.

[47][47]        Id. at 322-323.

[48][48]         TSN, May 21, 2002, pp. 5-6.

[49][49]         People v. Mercado, supra note 44.

[50][50]         TSN, May 21, 2002, pp. 7-9.

[51][51]        Id. at 10.

[52][52]         People v. Matunhay, G.R. No. 178274, March 5, 2010, 614 SCRA 307, 318.

[53][53]     Id.

[54][54]         People v. Del Rosario, 398 Phil. 292, 301 (2000).

[55][55]         People v. Tabio, G.R. No. 179477, February 6, 2008, 544 SCRA 156, 166.

[56][56]         People v. Baroquillo, G.R. No. 184960, August 24, 2011.

[57][57]         Records, Vol. VIII, p. 76.

[58][58]         Rollo, p. 44.

[59][59]         People v. Maglente, supra note 45 at 465-466.

[60][60]         TSN, May 21, 2002, p. 4.

[61][61]         TSN, August 1, 2002, p. 8.

[62][62]         439 Phil. 440, 470-471 (2002).

[63][63]         Records, Vol. VIII, p. 71.

[64][64]         People v. Yatar, G.R. No. 150224, May 19, 2004, 428 SCRA 504, 521.

[65][65]         People v. Ramos, 442 Phil. 710, 732 (2002).

[66][66]         TSN, August 1, 2002, pp. 7-8.

[67][67]         459 Phil. 1023, 1039 (2003).

[68][68]         People v. Feliciano, 418 Phil. 88, 106 (2001).

[69][69]         Section 4(e) of Republic Act No. 9344 reads:

                        SEC.  4.           Definition of Terms. — The following terms as used in this Act shall be defined as follows:

x x x x

(e)  “Child in Conflict with the Law” refers to a child who is alleged as, accused of, or adjudged as, having committed an offense under Philippine laws.          

[70][70]         G.R. No. 182941, July 3, 2009, 591 SCRA 666.

[71][71]        Id. at 686.

[72][72]         TSN, August 1, 2002, p. 3.

[73][73]         G.R. No. 169641, September 10, 2009, 599 SCRA 20, 48.

[74][74]         Paragraphs 2 and 3 of Article 12 of the Revised Penal Code, as amended, read:

                                ART. 12. Circumstances which exempt from criminal liability. – The following are exempt from criminal liability:

                x x x x

2.  A person under nine years of age.

3.  A person over nine years of age and under fifteen, unless he has acted with discernment, in which case, such minor shall be proceeded against in accordance with the provisions of Article 80 of this Code.

When such minor is adjudged to be criminally irresponsible, the court, in conformity with the provisions of this and the preceding paragraph, shall commit him to the care and custody of his family who shall be charged with his surveillance and education; otherwise, he shall be committed to the care of some institution or person mentioned in said Article 80.

[75][75]         Sierra v. People, supra note 70 at 681-682.

[76][76]         People v. Sarcia, supra note 73.

[77][77]         G.R. No. 180380, August 4, 2009, 595 SCRA 274, 296-297.

[78][78]         G.R. No. 184922, February 23, 2011, 644 SCRA 278, 286.

[79][79]         People v. Sarcia, supra note 73 at 45.

[80][80]         People v. Sambrano, 446 Phil. 145, 161 (2003).

[81][81]         People v. Masagca, Jr., supra note 78 at 286-287.

[82][82]         G.R. No. 190616, June 29, 2010, 622 SCRA 602, 615.

[83][83]         People v. Padilla, G.R. No. 182917, June 8, 2011.