Title
Supreme Court
Salvacion vs. Central Bank of the Philippines
Case
G.R. No. 94723
Decision Date
Aug 21, 1997
A foreign transient’s dollar deposit, exempt under banking laws, was garnished to satisfy damages awarded to a minor rape victim, prompting the Supreme Court to rule against the exemption, prioritizing justice and constitutional rights.

Case Digest (G.R. No. 94723)
Expanded Legal Reasoning Model

Facts:

  • Parties and Nature of Petition
    • Petitioners: Karen E. Salvacion (a minor) through her father and natural guardian Federico N. Salvacion, Jr., and spouses Federico N. Salvacion, Jr., and Evelina E. Salvacion.
    • Respondents: Central Bank of the Philippines (CB), China Banking Corporation (CBC), and Greg Bartelli y Northcott (an American tourist and judgment debtor).
    • Reliefs sought:
      • Immediate temporary restraining order against respondents’ enforcement of Section 113, CB Circular No. 960.
      • Declaration of rights and duties; adjudication of Section 113 as unconstitutional for (a) violating substantive due process, (b) granting class privilege (equal protection), (c) granting safe haven to criminals.
  • Allegations and Criminal Proceedings
    • On February 4–7, 1989, Greg Bartelli detained and raped 12-year-old Karen in his Makati apartment (one rape on Feb.4; three daily from Feb.5–7).
    • Karen rescued on Feb.7; Bartelli arrested. Items recovered included foreign currency deposits and bankbooks.
    • Criminal charges filed Feb.16, 1989: one count of Serious Illegal Detention, four counts of Rape. Bartelli escaped Makati jail on Feb.24, 1989. Warrant of Arrest and Hold Departure Order issued Feb.28, 1989; cases archived pending arrest.
  • Civil Case and Preliminary Attachment
    • Petitioners filed Civil Case No. 89-3214 for damages with a writ of preliminary attachment (bond posted, attachment issued Feb.28, 1989).
    • Deputy Sheriff garnished Bartelli’s dollar deposits in CBC on March 1, 1989. CBC first invoked RA 1405, then in writing (Mar.20, 1989) relied on Section 113, CB Circular 960 (exempting foreign currency deposits from attachment).
    • Petitioners inquired with CB (Apr.25, 1989); CB replied (May 26, 1989) that Section 113 is absolute, no exception, nor amended or repealed.
  • Trial Court Judgment and Frustrated Execution
    • Bartelli declared in default (summons by publication granted Apr.10, 1989; default Aug.7, 1989). Ex parte hearing led to judgment Mar.29, 1990 awarding Karen ₱500,000 (moral damages), ₱300,000 to her parents, ₱100,000 exemplary damages, 25% attorney’s fees, ₱10,000 litigation expenses, plus costs.
    • After finality, petitioners attempted execution against dollar deposit; CBC and CB refused, citing Section 113 CB Circular 960.
    • Petitioners elevated matter to the Supreme Court as a petition for declaratory relief.

Issues:

  • Jurisdiction
    • Can the Supreme Court entertain a petition for declaratory relief when original and exclusive jurisdiction lies with the Regional Trial Court?
  • Applicability of Exemption
    • Do Section 113, CB Circular No. 960, and Section 8 of RA 6426 (as amended by PD 1246) apply to foreign currency deposits of a mere transient or tourist?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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