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DISPOSITIVE:

“WHEREFORE, the instant Petition is hereby DENIED. The assailed August 2, 2012 Decision and the January 30, 2013 Resolution of the Court of Appeals in CA-G.R. CV No. 91686 are hereby AFF’IRMED.

Respondcnts’Motion for Prior Leave of Court (to file [l] Notice of Death of }\;farina S. Valero; [2] Motion to Allow Substitution of Movants as Compulsory Heirs of the Decedent; and [3] Entry of Appearance of Undersigned Counsel for Movants) is NOTED.

No pronouncement as to costs.

SO ORDERED.”

SUBJECTS/DOCTRINES/DIGEST:

WHAT HAPPENED IN THIS CASE?

THIS IS A CASE FOR RECONSTITUTION OF TITLE. APPELLANTS ARGUE THAT THERE WAS NO PUBLICATION OF THE REVISIONS OF THE ORIGINAL PETITION AND THUS RTC DID NOT ACQUIRE JURISDICTION OVER THE CASE. SUPREME COURT SAID THAT THE REVISIONS MERELY REFER TO THE SUBSTITUTION OF THE PARTIES IN VIEW OF THE DEATHS OF SPOUSES MANALO AND THE MENTION OF RA 26 AS THE APPLICABLE LAW. THESE ARE MINOR MATTERS. NEW PUBLICATION IS NOT NECESSARY.

This Court finds, as the CA did, that the foregoing does not affect the nature of the action that necessitates another posting and publication, 25 The revisions merely refer to the substitution of the parties in view of the deaths of the spouses Manalo and the mention of RA 26 as the applicable law. These are minor matters that simply tend to assist and guide the RTC in conducting the proceeding. Hence, the earlier posting and publication of the petition for reconstitution prior to the second amendment w~re sufficient for the RTC to acquire jurisdiction on the subject matter of the case.

WHAT ARE THE REQUISITES TO BE COMPLIED WITH FOR AN ORDER FOR RECONSTITUTION TO BE ISSUED?

In Sebastian v. Spouses Cruz, 19 We pointed out that the following
requisites must be complied with for an order for reconstitution to be
issuE:d: (a) that the certificate of title had been lost or destroyed; (b) that the
documents presented by petitioner are sufficient and proper to
wanant reconstitution of the lost or destroyed certificate of title; (c) that the
petitioner is the regist~red owner of the property or had an interest
therein; ( d) that the certificate of title was in force at the time it was lost and
destroyed; and (e) that the description~ area and boundaries of the property are
substantially the same as those contained in the lost or destroyed
certificate of title. Petitioner claims that the RTC did not acquire jurisdiction
over the case because the second amended petition contained substantial
changes and annexes and yet said petition was not posted and published as
required under Sections 12 and 13 of RA 26.

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DISPOSITIVE:

WHEREFORE, the Petition for Review on Certiorari is DENIED. The October 1, 2013 Decision and June 30, 2014 Resolution of the Court of Appeals in CA-GR. SP No. 117835 are AFFIRMED.

So Ordered.

SUBJECTS/DOCTRINES/DIGEST:

WHAT HAPPENED IN THIS CASE?

THE SUPREME COURT SAID THERE IS PROBABLE CAUSE AGAINST PETITIONER FOR UNFAIR COMPETITION. HIS PRODUCT, A MEDICATED FACIAL CREAM SOLD TO THE PUBLIC IS CONTAINED IN THE SAME OVAL-SHAPED CONTAINER WHICH HAD THE MARK CHIN CHUN SU AS THAT OF RESPONDENT.

BUT PETITIONER INDICATED IN HIS LABEL THE NAME OF THE MANUFACTURER?

EVEN THEN. AN ORDINARY PURCHASER WOULD NOT NORMALLY INQUIRE ABOUT THE MANUFACTURER.

Here, petitioners’ product which is a medicated facial cream sold to the public is contained in the same pink oval-shaped container which had the mark “Chin Chun Su,” as that of respondent. While petitioners indicated in their product the manufacturer’s name, the same does not change the fact that it is confusingly similar to respondent’s product in the eyes of the public. As aptly found by the appellate court, an ordinary purchaser would not normally inquire about the manufacturer of the product. 55 Petitioners’ product and that solely distributed by respondent are similar in the following respects “l. both are medicated facial creams; 2. both are contained in pink, oval-shaped containers; and 3. both contain the trademark “Chin Chun Su” x x x The similarities far outweigh the differences. The general appearance of (petitioners’) product is confusingly similar to (respondent).”56 Verily, the acts complained of against petitioners constituted the offense of Unfair Competition and probable cause exists to hold them for trial, contrary to the findings ofRTC Branch 46.

WHAT ARE THE ESSENTIAL ELEMENTS OF UNFAIR COMPETITION?

THEY ARE: CONFUSING SIMILARITY IN THE GENERAL APPEARANCE OF THE GOODS AND INTENT TO DECEIVE THE PUBLIC AND DEFRAUD A COMPETITOR.

HOW TO DETERMINE CONFUSING SIMILARITY?

NOT NECESSARILY FROM THE MARKS BUT FROM OTHER FACTORS LIKE IN PACKAGING OR PRESENTATION OF THE GOODS?

HOW TO DETERMINE LIKELIHOOD OF CONFUSION?

BASED ON PECULIAR CIRCUMSTANCES OF EACH CASE.

HOW TO DETERMINE INTENT TO DECEIVE AND DEFRAUD?

FROM SIMILARITY OF THE APPEARANCE OF THE GOODS.

The essential elements of an action for unfair competlt10n are: (1) confusing similarity in the general appearance of the goods, and (2) intent to deceive the public and defraud a competitor. 52 The confusing similarity may or may not result from similarity in the marks, but may result from other external factors in the packaging or presentation of the goods. Likelihood of confusion of goods or business is a relative concept, to be determined only according to peculiar circumstances of each case. 53 The element of intent to deceive and to defraud may be inferred from the similarity of the appearance of the goods as offered for sale to the public.54

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DISPOSITIVE:

ACCORDINGLY, the Decision No. 2020-127 dated January 27, 2020 of the Commission on Audit is AFFIRMED with MODIFICATION. Petitioner Bernadette Lourdes B. Abejo is ABSOLVED from solidary liability to return the entire disallowed amount, as well as from personal liability to return the excess amount she received under Notice of Disallowance No. 2012-002-101-(1 l) dated February 28, 2012.

So Ordered.

SUBJECTS/DOCTRINES/DIGEST:

WHAT HAPPENED IN THIS CASE?

PETITIONER APPROVED AND GRANTED COLLECTIVE NEGOTIATIONS AGREEMENT (CNA) INCENTIVES  TO EMPLOYEES FROM AGENCY SAVINGS BEFORE END OF THE YEAR. THE DBM BUDGET CIRCULAR STATES THAT SUCH INCENTIVES SHALL BE GIVEN AT END OF THE YEAR. IS PETITIONER LIABLE FOR INCENTIVES PAID. SUPREME COURT SAID NO BECAUSE PETITIONER ACTED IN GOOD FAITH. THE DBM CIRCULAR ALSO STATES THAT THE GIVING OUT OF  INCENTIVES REQUIRES THAT PLANNED PROGRAMS HAVE BEEN ACCOMPLISHED AND THESE PROGRAMS WERE ACCOMPLISHED BEFORE THE END OF THE YEAR. PETITIONER THOUGHT THAT SINCE THE PROGRAMS HAVE ALREADY BEEN ACCOMPLISHED THE INCENTIVES CAN ALREADY BE PAID EVEN IF NOT AT THE END OF THE YEAR.

5.7. The CNA Incentive for the year shall be paid as a one-time benefit after the end of the year, provided that the planned programs/activities/projects have been implemented and completed in accordance with the performance targets of the year.

…………………..

To be sure, the present case bears striking similarity, if it is not in all fours with Montejo v. Commission on Audit.30 There, the Department of Science and Technology (DOST) paid CNA Incentives in the middle of 2010 and 2011, and again at the end of the same year in 2010. Montejo claimed that there was substantial compliance with the requirements of DBM BC No. 2006-1. For although said issuance provides that the CNA Incentives should be granted after the end of the year, it was qualified by a provision that the grant shall be released only after the planned activities and projects of the concerned agency have been implemented in accordance with the performance targets for the year. As it was, the DOST had been submitting documents proving that they had achieved their targets and corresponding savings were generated. Thus, the grant of CNA Incentives was compliant with the proviso in Section 5.7 of DBM BC No. 2006-1, albeit payments were released twice in the middle of the year.

Though the Court rejected Montejo’s argument and upheld the notice of disallowance, as here, it nevertheless, excused Montejo from paying the disallowed amount, thus:

Petitioner’s erroneous interpretation of the DBM circular aside, the action of petitioner was indicative of good faith because he acted in an honest belief that the grant of the CNA Incentives had legal bases. It is unfair to penalize public officials based on overly stretched and strained interpretations of rules which were not that readily capable of being understood at the time such functionaries acted in good faith. Ifthere is any ambiguity, which is actually clarified years later, then it should only be applied prospectively. A contrary rule would be counterproductive.

Thus, although this Court considers the questioned Notices of Disallowance valid, this Court also considers it to be in the better interest of justice and prudence that petitioner, other officials concerned and the employees who benefited from the CNA Incentives be relieved of any personal liability to refund the disallowed amount. 31

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