Title
Romualdez vs. Court of Appeals, 16th Division
Case
G.R. No. 230391
Decision Date
Jul 5, 2023
FPHC sought to perpetuate Juliette Gomez Romualdez's testimony regarding allegedly ill-gotten PCIB shares, but the Supreme Court ruled in her favor, citing lack of merit, jurisdiction issues, and marital privilege.
execution pending appeal
orders
resolutions
A

Case Digest (G.R. No. 231490)

Facts:

  • Background of the Case
    • Factual origin involves the PCIB shares, originally owned by First Philippine Holdings Corporation (FPHC), later sold to Trans Middle East (Phils.) Equities, Inc. (TMEE) and its incorporator, Narciso, under allegations of being ill-gotten wealth of Benjamin Romualdez, the late husband of petitioner Juliette Gomez Romualdez.
    • In 1986, the Philippine government, through the Presidential Commission on Good Government (PCGG), sequestered the PCIB shares on grounds of ill-gotten wealth and later included them in the PCGG’s complaint for Reconveyance, Reversion, Accounting, Restitution, and Damages against both petitioner and Benjamin Romualdez in Civil Case No. 0035 before the Sandiganbayan.
    • FPHC intervened in the said case with multiple complaints-in-intervention claiming that the sale of the shares to TMEE was tainted by fraud, and later alleged that PCGG should return the shares if they were indeed ill-gotten wealth.
  • Litigation History and Procedural Posture
    • In G.R. No. 230391, petitioner Juliette Gomez Romualdez instituted a Petition for Certiorari under Rule 65, seeking the issuance of a Writ of Preliminary Injunction and/or Temporary Restraining Order to nullify the Resolution and Order rendered by the Court of Appeals (CA) in CA-G.R. CV No. 105836.
      • Petitioner challenged the CA’s approval of the execution pending appeal of certain RTC orders; specifically, the Order dated 27 April 2015 and an Omnibus Order dated 21 September 2015 of Branch 137, RTC, Makati City, which had granted FPHC’s petition for the perpetuation of her testimony.
    • In G.R. No. 250746, while the previous petition was still pending, petitioner filed a separate Petition for Review on Certiorari under Rule 45.
      • This petition prayed for the reversal and setting aside of the CA’s Decision dated 04 September 2019 and Resolution dated 04 December 2019, which had affirmed the RTC orders.
    • The underlying controversy involves FPHC’s effort to perpetuate the testimony of Juliette Gomez Romualdez as a material witness, arguing that her advanced age (82 years) and failing health necessitated the urgent taking of her deposition.
      • FPHC asserted that without the perpetuation of her testimony, it would be prejudiced in its claim regarding the fraudulent sale of the PCIB shares.
      • Petitioner, on the other hand, contended that FPHC erroneously invoked the RTC’s jurisdiction over her testimony and that proper proceedings should have been brought before the Sandiganbayan given the context of Civil Case No. 0035.
  • Events in the Lower Courts
    • The RTC of Makati City, Branch 137, granted FPHC’s petition on 27 April 2015, allowing the perpetuation of petitioner’s testimony on the grounds of preventing a failure or delay of justice due to her advanced age and physical condition.
      • The RTC found no substantial prejudice to petitioner since the relevant facts had already been disclosed during the hearing of the petition.
      • Petitioner’s subsequent motions for reconsideration were denied, prompting FPHC to seek execution pending appeal from the CA.
    • The CA, in its Resolution dated 20 September 2016, granted FPHC’s motion for execution pending appeal, basing its decision primarily on the urgency created by petitioner’s frail health and the possibility that her testimony might become unavailable if delayed.
    • Later, on 27 February 2017, the CA issued another Resolution denying petitioner’s motions (including her Motion for Reconsideration and the Urgent Motion to Stay the issuance of the writ) related to the execution pending appeal.
    • While these proceedings were ongoing, the CA rendered a decision on 04 September 2019 (and a Resolution on 04 December 2019) affirming the RTC’s orders, which ultimately led to the filing of the petition now consolidated in G.R. Nos. 230391 and 250746.
  • Allegations by the Petitioner
    • Petitioner argued that:
      • The CA committed grave abuse of discretion in allowing execution pending appeal by focusing solely on her advanced age and health without considering other material facts.
      • The RTC did not have jurisdiction to entertain FPHC’s petition to perpetuate her testimony since the underlying cause related to the disputed sale of the PCIB shares should properly fall under the Sandiganbayan’s exclusive purview.
      • FPHC’s petition lacked factual and legal foundation, particularly because the PCIB shares were registered under TMEE’s name, and there was no proof of petitioner’s actual involvement or knowledge of the allegedly fraudulent transaction.
    • The petitioner contended that FPHC’s actions amounted to an unwarranted fishing expedition to secure testimony without establishing a concrete cause of action against her or linking her directly to the disputed transaction.

Issues:

  • Whether the CA committed grave abuse of discretion in:
    • Ordering the execution pending appeal of the RTC’s Orders granting the perpetuation of petitioner’s testimony.
    • Relying on petitioner’s advanced age and frail condition as the primary basis for the immediate execution despite the potential consequences of delaying her deposition.
  • Whether the RTC had proper jurisdiction to take cognizance and dispose of FPHC’s petition for perpetuating petitioner’s testimony, or if the proper forum should have been the Sandiganbayan given the related pending civil case.
  • Whether FPHC’s petition to perpetuate the testimony of petitioner has sufficient basis in fact and law, particularly considering:
    • The dismissal of previous complaints-in-intervention on the ground of prescription.
    • The procedural posture regarding the disputed PCIB shares which were not part of the civil case after the dismissal and were registered under TMEE’s name.
    • The absence of evidence linking petitioner directly to the transaction involving the PCIB shares.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)
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