Case Digest (G.R. No. 176438)
Facts:
On March 9, 2005, the Board of Directors of the Philippine Deposit Insurance Corporation (PDIC) adopted Resolution No. 2005-03-032 authorizing a fact-finding investigation, under Section 9(b-1) of Republic Act No. 3591, as amended, into ten banks collectively known as “Legacy Banks.” On May 25, 2005, a second resolution, No. 2005-05-056, approved a separate investigation of the Philippine Countryside Rural Bank, Inc. (PCRBI) based on a complaint by a corporate depositor. The PDIC served notices of investigation on PCRBI (June 7, 2005), Pilipino Rural Bank (Cebu), Inc. (PRBI) (June 16), Bank of East Asia (Minglanilla, Cebu), Inc. (BEAI) (June 15), and Rural Bank of Carmen (Cebu), Inc. (RBCI) (June 25), all without prior approval of the Monetary Board. Upon legal advice, PRBI and BEAI refused entry to PDIC investigators, prompting the four banks (collectively, the “Banks”) to file a Petition for Declaratory Relief and Temporary Restraining Order before the Regional Trial Court (RTCase Digest (G.R. No. 176438)
Facts:
- PDIC Board Resolutions and Investigation Team
- On March 9, 2005, PDIC Board adopted Resolution No. 2005-03-032 authorizing investigations under Section 9(b-1) of R.A. No. 3591 based on BSP Reports of Examination; created Special Investigation Team with power to administer oaths and examine records.
- On May 25, 2005, PDIC Board adopted Resolution No. 2005-05-056 authorizing investigation of PCRBI on complaint of Philippine School of Entrepreneurship and Management, Inc.
- Service of Notices and Banks’ Reaction
- Between June 3–25, 2005, PDIC served Notices of Investigation to PCRBI, PRBI, BEAI, and RBCI; investigators found loans settled by dacion of properties previously foreclosed under other respondent banks.
- PRBI and BEAI, on counsel’s advice, refused entry and access; sent letters to PDIC and Monetary Board seeking clarification on PDIC’s investigatory power and alleging need for prior Monetary Board approval.
- Proceedings in Lower Courts and Court of Appeals
- July 28, 2005: Banks filed petition for declaratory relief with RTC-Makati (Civil Case No. 05-697); RTC dismissed for lack of jurisdiction over breach already committed.
- CA-Manila: Petition for injunction dismissed as moot and academic after RTC dismissal.
- March 2006: Banks filed new petition for injunction in CA-Cebu; CA-Cebu granted TRO (March 15) and preliminary injunction (May 16), enjoining PDIC from investigating without prior Monetary Board approval.
- PDIC filed Rule 65 petition (G.R. No. 173370) before SC: dismissed July 31, 2006 for failure to show grave abuse of discretion and prematurity.
- CA-Cebu issued final decision (September 18, 2006) affirming necessity of prior Monetary Board approval; denied PDIC’s motion for reconsideration (January 25, 2007).
Issues:
- Whether the respondent banks violated the rule against forum shopping by filing in CA-Cebu.
- Whether the RTC-Makati declaratory relief decision constitutes res judicata as to the CA-Cebu injunction petition.
- Whether PDIC was deprived of due process when CA-Cebu issued the injunction.
- Whether the issues in G.R. No. 173370 are the same as those raised in this petition.
- Whether prior approval of the Monetary Board is necessary before PDIC may conduct an investigation under Section 9(b-1) of R.A. No. 3591, as amended.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)