Title
Republic vs. Lucio Tan, Estate of Ferdid E. Marcos, et al.
Case
G.R. No. 195837
Decision Date
Oct 3, 2023
Republic sued Tan, Marcos Sr. and associates for ill-gotten wealth; SC denied most claims for lack of admissible evidence but found Tan's brewery license linked to undue advantage by Marcos; remanded for damage assessment.

Case Digest (G.R. No. 195837)
Expanded Legal Reasoning Model

Facts:

  • On July 17, 1987, the Republic of the Philippines, through the Presidential Commission on Good Government (PCGG), filed a complaint against Lucio C. Tan, former President Ferdinand E. Marcos, Imelda Marcos, and 22 other individuals and numerous corporations, seeking recovery and reconveyance of alleged ill-gotten wealth acquired by illegal means during the Marcos regime.
    • The complaint alleged several schemes including the liquidation of GenBank and its acquisition by Tan's Allied Bank without sufficient collateral.
    • Tan's delivery of beneficial interests in Asia Brewery shares to Marcos and Imelda in exchange for business privileges.
    • Improper gifts, bribes, and concessions allegedly given to Marcos and Imelda.
    • The creation of Shareholdings, Inc. to conceal and prevent recovery of assets.
  • The Republic filed a Second Amended Complaint on September 13, 1991, impleading additional defendants including corporations related to Tan's business ventures.
  • After a prolonged trial beginning in 2006, issues arose:
    • The Sandiganbayan disallowed testimony concerning GenBank's liquidation, relying on the previous Supreme Court ruling in the GenBank Liquidation Case.
    • Motions to dismiss by Ferry and Zalamea were granted on the basis of insufficient evidence of their participation.
    • Imelda's Amended Answer with Counterclaim was denied admission for involving different transactions.
    • The Republic's motion to impeach new parties such as Philip Morris Fortune Tobacco Corp. (PMFTC) in connection with merger dealings was denied.
    • The Sandiganbayan dismissed the Republic's Complaint for failure to sufficiently prove that the assets originated from government resources or improper acquisition.
  • The Republic appealed these decisions in the Supreme Court via four consolidated petitions.

Issues:

  • In G.R. No. 195837:
    • Whether Ferry and Zalamea impliedly admitted allegations by filing demurrer to evidence.
    • Whether claims against Ferry and Zalamea are barred by res judicata.
    • Whether dismissal of case against them was proper.
    • Whether the Sandiganbayan violated constitutional and procedural rules.
    • Whether the Republic committed forum shopping.
  • In G.R. No. 198221:
    • Whether exclusion of Joselito and Aderito Yujuico's testimonies infringed due process and was an abuse of discretion.
    • Whether the Sandiganbayan committed grave abuse of discretion in denying the Republic's motion for voluntary inhibition.
  • In G.R. No. 198974:
    • Whether PMFTC is an indispensable party requiring acceptance of the Third Amended Complaint.
  • In G.R. No. 203592:
    • Whether the Sandiganbayan unduly restricted the concept of ill-gotten wealth to assets originating from government resources.
    • Whether the Republic sufficiently proved the subject assets are ill-gotten wealth.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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