Case Digest (G.R. No. 76952)
Facts:
In G.R. No. 180705 decided on November 27, 2012, Eduardo M. Cojuangco, Jr. filed a petition for review under Rule 45 to annul Part C of the Partial Summary Judgment (PSJ-A) dated July 11, 2003, as affirmed by the Sandiganbayan on December 28, 2004 and May 11, 2007, in Civil Case No. 0033-A. The original suit, filed by the Presidential Commission on Good Government (PCGG) on July 31, 1987, sought recovery of ill-gotten wealth from Ferdinand E. Marcos, Cojuangco and others by virtue of Executive Orders Nos. 1, 2 and 14. CC No. 0033 was later subdivided into eight amended complaints (CC 0033-A to H); the present recourse concerns only CC 0033-A, which impleaded Cojuangco among the defendants. In May 1975, Cojuangco purportedly obtained an exclusive option to buy 137,866 shares of First United Bank (FUB) from Pedro Cojuangco et al. (PC-ECJ Agreement). On May 25, 1975, the Philippine Coconut Authority (PCA) entered into an “Agreement for the Acquisition of a Commercial Bank for the BCase Digest (G.R. No. 76952)
Facts:
- Coconut levy framework and bank acquisition
- Republic Act No. 6260 (1971) created the Coconut Investment Company (CIC) and Coconut Investment Fund (CIF), funded by a levy on copra sales, part of which (CCSF) was managed by the Philippine Coconut Authority (PCA).
- Presidential Decrees 276, 582, 755, 961 and 1468 imposed and regulated coconut levies, directing PCA to use CCSF/CIDF to acquire a commercial bank for coconut farmers.
- In May 1975, two agreements were executed:
- A sale‐option agreement (“PC‐ECJ Agreement”) between Pedro Cojuangco (and others) and Eduardo M. Cojuangco, Jr., granting him an exclusive option to buy 72.2% of First United Bank (FUB) shares at ₱200/share.
- The “PCA‐Cojuangco Agreement” where PCA purchased those option shares from Cojuangco using CCSF and, as compensation for his option and management services, granted him 10% of the shares acquired plus related dividends.
- PCA funded the entire acquisition price from CCSF; FUB was renamed United Coconut Planters Bank (UCPB). PCA was to distribute the shares free to registered coconut farmers.
- Post‐EDSA recovery and litigation
- Executive Orders Nos. 1, 2 and 14 (1986) created the Presidential Commission on Good Government (PCGG), sequestering assets deemed ill‐gotten, including UCPB shares.
- PCGG filed Civil Case No. 0033 before the Sandiganbayan for recovery of ill‐gotten wealth; it was subdivided into CC 0033-A to ‑H, CC 0033-A including Cojuangco.
- On July 11, 2003, Sandiganbayan issued Partial Summary Judgment in CC 0033-A (PSJ-A), declaring the PCA‐Cojuangco Agreement void for lack of consideration and holding that the 7.22% UCPB shares granted to Cojuangco belong to the Republic.
- Cojuangco’s motion for reconsideration was denied (December 28, 2004), and his petition under Rule 45 was filed (G.R. No. 180705).
Issues:
- Jurisdiction
- Did the Sandiganbayan have jurisdiction over CC 0033-A as an ill‐gotten wealth case under EOs 1, 2 and 14?
- Validity of the PCA‐Cojuangco Agreement
- Can the Agreement be accorded the force of law under Section 1, PD 755, despite non-publication?
- Was the Agreement void ab initio for lack of cause or consideration?
- Ownership of UCPB shares
- Are the 7.22% UCPB shares granted to Cojuangco private property or public property acquired with coconut levy (public) funds?
- Must those shares be reconveyed to the Republic for the benefit of coconut farmers?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)