Case Digest (G.R. No. L-6055)
Facts:
In The People of the Philippines vs. William H. Quasha (93 Phil. 333, G.R. No. L-6055, June 12, 1953), the respondent, William H. Quasha—a member of the Philippine Bar—prepared and registered on November 4, 1946, in the Court of First Instance of Manila the articles of incorporation of Pacific Airways Corporation, a domestic common‐carrier corporation. In those articles, Quasha stated that Arsenio Baylon, a Filipino citizen, had subscribed to and owned 60.005% of the subscribed capital stock, when in fact Baylon was merely a trustee for five American investors—Erwin E. Shannahan, Albert W. Onstott, James O’Bannon, Denzel J. Cavin, and another American citizen—whose names did not appear in the articles. The purpose of this arrangement was to circumvent Section 8, Article XIV of the 1935 Constitution, which required that at least 60% of a public‐utility corporation’s capital be Filipino‐owned. Quasha was charged with falsification of a public and commercial document under ArticlesCase Digest (G.R. No. L-6055)
Facts:
- Parties and Charge
- William H. Quasha, a member of the Philippine bar, was charged with falsification of a public and commercial document.
- He prepared and registered the articles of incorporation of Pacific Airways Corporation.
- Contents and Registration of Articles
- On November 4, 1946, articles were filed with the SEC for a domestic corporation as a common carrier by air, land or water.
- Authorized capital stock was ₱1,000,000 (9,000 preferred shares at ₱100 each, 100,000 common shares at ₱1 each).
- Subscribed capital was ₱200,000, with the following subscribers:
- Arsenio Baylon (Filipino) – 1,145 preferred shares (₱114,500) and 6,500 common shares (₱6,500).
- Five Americans – 200 preferred shares (₱20,000) and 59,000 common shares (₱59,000).
- Articles stated Baylon owned 60.005% of subscribed capital, though the funds were from the American subscribers, Baylon acting as their trustee.
- Trial Court Proceedings
- Quasha was tried under Article 172(1) in connection with Article 171(4) of the Revised Penal Code for “making untruthful statements in a narration of facts.”
- The trial court found he intended to circumvent Section 8, Article XIV of the Constitution (requiring 60% Filipino capital for public utilities).
- He was convicted, sentenced to imprisonment and fined, and appealed to the Supreme Court.
Issues:
- Was Quasha under a legal obligation to disclose in the articles that Baylon was a trustee for the American subscribers?
- Did Quasha have the wrongful intent to circumvent the constitutional requirement on Filipino ownership of public utilities?
- If the act was initially punishable, did the March 1947 Parity Amendment render the offense obsolete?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)