Title
Supreme Court
Petitioner-Organizations vs. Executive Secretary
Case
G.R. No. 147036-37
Decision Date
Apr 10, 2012
A challenge to the constitutionality of coco-levy fund laws, declaring them public funds and invalidating provisions treating them as private property.

Case Digest (G.R. No. L-65295)
Expanded Legal Reasoning Model

Facts:

  • Legislative and executive measures establishing coco-levy funds
    • Republic Act No. 6260 (June 19, 1971) created the Coconut Investment Fund (CI Fund) with a levy of ₱0.55 per 100 kg of copra, administered by the Coconut Investment Company (CIC).
    • Presidential Decree (P.D.) 276 (August 20, 1973) established the Coconut Consumers Stabilization Fund (CCS Fund) with a ₱15-per-100 kg copra levy; unused balance to revert to the CI Fund.
    • P.D. 582 (November 14, 1974) created the Coconut Industry Development Fund (CID Fund), initial capital of ₱100 million by the Philippine Coconut Authority (PCA), permanent levy of ₱0.20 per kg copra, to be administered by the Philippine National Bank (PNB).
    • P.D. 755 (1975) approved acquisition of First United Bank (later United Coconut Planters Bank – UCPB) by the PCA for industry credit policy.
    • P.D. 961 (July 14, 1976) codified coconut industry laws, created the Coconut Industry Investment Fund (CIIF) from surplus levies, declared coco-levy funds private under Article III, Section 5.
    • P.D. 1468 (June 11, 1978) reiterated private ownership of coco-levy funds.
    • P.D. 1699 (1980) suspended levy collections; P.D. 1841 (1981) revived collections as the Coconut Industry Stabilization Fund (CIS Fund) for developmental programs.
  • Subsequent executive orders and litigation
    • Executive Order (E.O.) 312 (November 2000) created the Sagip Niyugan Program, a ₱1 billion fund from sale of coco-levy–acquired assets, managed by a presidential committee.
    • E.O. 313 (November 2000) constituted the Coconut Trust Fund with San Miguel Corporation shares as capital, managed by a presidentially appointed committee, and excluded from Sandiganbayan sequestration.
    • President Gloria Macapagal-Arroyo suspended E.O.s 312 and 313 (January 26, 2001).
    • Petitions filed: G.R. Nos. 147036-37 (April 24, 2001) challenging E.O.s 312 and 313 and Article III, Section 5 of P.D. 1468; G.R. No. 147811 (2001) challenging Section 2 of P.D. 755 and Article III, Section 5 of P.D.s 961 and 1468.

Issues:

  • Procedural issues
    • Whether certiorari under Rule 65 was the proper remedial remedy.
    • Whether petitioners had legal standing to maintain the actions.
  • Substantive issues
    • Whether the coco-levy funds are public funds.
    • Whether Section 2 of P.D. 755 is unconstitutional.
    • Whether Article III, Section 5 of P.D. 961 and P.D. 1468 is unconstitutional.
    • Whether E.O. 312 is unconstitutional.
    • Whether E.O. 313 is unconstitutional.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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