G.R. No. 139895 - Lazaro vs. Rural Bank of Francisco Balagtas , Inc.

On March 16, 2007, the Commission on Elections (COMELEC) En Banc accredited the Coalition of Associations of Senior Citizens in the Philippines, Inc. (SENIOR CITIZENS) as a party-list organization (SPP No. 06-026).
SENIOR CITIZENS participated in the 2007 elections (failed to reach 2% threshold) and, under the BANAT allocation procedure, obtained one seat in Congress (Rep. Godofredo V. Arquiza).

In the May 10, 2010 elections, SENIOR CITIZENS secured two seats (nominees 1 and 2) and its nominees executed an “Irrevocable Covenant” on May 5, 2010 providing for rotating terms among nominees 1–5.
The covenant stipulated that if two seats were won, Nominee 1 would serve three years and Nominees 2 and 3 one-and-a-half years each, with further arrangements if three seats were won.

A national convention on November 27, 2010 allegedly elected Francisco G. Datol, Jr. (third nominee) as Chair; he was expelled by the rival Board allied with Rep. Arquiza on November 30, 2010, creating Datol and Arquiza factions.
On December 14, 2011, Rep. David L. Kho tendered his resignation effective December 31, 2011 (per term-sharing), and the Arquiza Group filed E.M. No. 12-040 seeking to replace him with the fourth nominee.

COMELEC Resolution No. 9366 (Feb 21, 2012) prohibited term-sharing agreements among party-list nominees (Sec. 7, Rule 4).
On June 27, 2012, the COMELEC En Banc dismissed SENIOR CITIZENS’ petition in E.M. No. 12-040, ruled term-sharing agreements contrary to public policy, refused to recognize Rep. Kho’s resignation, and held no vacancy existed.

Both factions filed Manifestations of Intent to Participate for the May 13, 2013 elections (SPP Nos. 12-157 & 12-191). COMELEC Resolution No. 9513 (Aug 2, 2012) set summary hearings on continuing compliance with RA 7941.
After hearings on August 24, 2012, the COMELEC En Banc (Dec 4, 2012) cancelled SENIOR CITIZENS’ registration for violating election laws (term-sharing agreement).

Rival factions filed certiorari petitions (G.R. Nos. 206844–45 & 206982); the Supreme Court granted status quo ante orders and consolidated them with Atong Paglaum v. COMELEC (G.R. No. 203766).
COMELEC issued the Omnibus Resolution (May 10, 2013) denying participation and cancelling accreditation of SENIOR CITIZENS for term-sharing, despite its 677,642 votes in the May 13 elections.
The Supreme Court issued a TRO (May 29, 2013) and a status quo ante order (June 5, 2013), reserving seats for SENIOR CITIZENS pending final resolution.

Whether COMELEC committed grave abuse of discretion by cancelling SENIOR CITIZENS’ registration without due notice and a hearing on the term-sharing ground.
Whether the August 24, 2012 summary hearing adequately apprised the parties that their 2010 term-sharing agreement would be used for disqualification.

Whether COMELEC improperly added “public policy” (term-sharing) as a ground not enumerated in Section 6 of RA 7941.
Whether applying Resolution No. 9366’s prohibition retroactively deprived SENIOR CITIZENS of a vested right or constituted an ex post facto penalty.
Whether SENIOR CITIZENS actually implemented a term-sharing agreement sufficient to warrant cancellation.