Case Digest (G.R. No. 141796) Core Legal Reasoning Model
Facts:
The case before the Supreme Court involves two consolidated petitions for certiorari arising from a Resolution issued by the Sandiganbayan (4th Division) denying the motions of Mid-Pasig Land Development Corporation (MLDC) and Independent Realty Corporation (IRC) to vacate an earlier order approving a Compromise Agreement between the Presidential Commission on Good Government (PCGG) and Potenciano T. Ilusorio. The events stemmed from a complaint filed on July 22, 1987, by the Republic of the Philippines, represented by the PCGG, alleging that Ilusorio and several defendants, including former President Ferdinand Marcos and others, conspired as agents to acquire ill-gotten wealth by manipulating corporate shareholdings in key telecommunications firms illegally.Following the EDSA People Power Revolution on February 25, 1986, President Corazon Aquino established the PCGG through Executive Order No. 1 to recover ill-gotten wealth from the Marcos regime. Jose Y. Campos, a former ass
Case Digest (G.R. No. 141796) Expanded Legal Reasoning Model
Facts:
Creation of PCGG and Recovery of Ill-Gotten Wealth Following the EDSA Revolution in 1986, President Corazon C. Aquino issued Executive Order No. 1, creating the Presidential Commission on Good Government (PCGG). Its mandate was to recover ill-gotten wealth accumulated by former President Ferdinand Marcos, his family, and associates, including the sequestration of businesses and assets controlled by them.Surrender of Properties by Jose Y. Campos
Jose Y. Campos, a self-proclaimed crony of Marcos, voluntarily surrendered assets and corporations held in trust for Marcos. Among these were the Independent Realty Corporation (IRC) and Mid-Pasig Land Development Corporation (MLDC), which are petitioners in this case.
Filing of the Complaint by the Republic
On July 22, 1987, the Republic, represented by the PCGG, filed a complaint with the Sandiganbayan in Civil Case No. 0009, seeking the reconveyance, restitution, and accounting of ill-gotten wealth. Defendants included Potenciano Ilusorio, who allegedly acted as a dummy for the Marcoses in corporations like IRC and MLDC.
Ilusorio’s Defense
Ilusorio denied being a dummy or agent of the Marcoses, claiming he acquired 5,400 shares of Philippine Overseas Telecommunications Corporation (POTC) through honest means. He alleged these shares were taken by the Marcoses through threats and intimidation and were placed in the names of IRC, MLDC, and Ferdinand Marcos, Jr.
Compromise Agreement
On June 28, 1996, the PCGG and Ilusorio entered into a Compromise Agreement, approved by then-President Fidel V. Ramos. The agreement allocated 4,727 POTC shares to the Republic and 673 shares to Ilusorio. It also included waivers of claims over dividends and properties in Parañaque.
Sandiganbayan Approval
The Sandiganbayan approved the Compromise Agreement on June 8, 1998. Petitioners IRC and MLDC moved to vacate the order, arguing they were not parties to the agreement and that it was disadvantageous to the government. The Sandiganbayan denied the motions, ruling that the PCGG had authority to act on behalf of the corporations and the Republic.
Issues:
- Whether the Compromise Agreement is valid and binding on petitioners IRC and MLDC.
- Whether the Sandiganbayan acted with grave abuse of discretion in approving the Compromise Agreement.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)