Case Digest (G.R. No. 187951)
Facts:
The Wellex Group, Inc. v. Sandiganbayan, G.R. No. 187951, June 25, 2012, Supreme Court Second Division, Sereno, J., writing for the Court.Petitioner The Wellex Group, Inc. (Wellex) sought certiorari under Rule 65 to nullify two Sandiganbayan Special Division Resolutions dated 24 September 2008 and 2 April 2009 in Criminal Case No. 26558 (People v. Joseph Ejercito Estrada). Wellex alleged the Sandiganbayan unduly included 450 million Waterfront Philippines, Inc. shares in the forfeiture ordered to satisfy the plunder conviction of former President Joseph Ejercito Estrada, thereby committing grave abuse of discretion because Wellex was not a party to the plunder case.
On 12 September 2007 the Sandiganbayan (Special Division) rendered a Decision convicting former President Estrada of plunder under R.A. No. 7080 and ordered forfeiture of specified sums and properties, including amounts deposited in accounts adjudged as ill-gotten (notably the Jose Velarde accounts). On 25–26 October 2007 President Arroyo granted and Estrada accepted executive clemency, with an express reservation that the forfeitures ordered by the Sandiganbayan remained in force. Consequently, on 26 October 2007 the Sandiganbayan ordered issuance of a Writ of Execution, which was issued on 5 November 2007.
Estrada moved to quash the writ on 9 November 2007, claiming the execution expanded the Decision; the Office of the Special Prosecutor opposed, asserting the writ implemented Section 2 of R.A. No. 7080. Meanwhile, Wellex wrote BDO on 21 January 2008 seeking return of mortgaged Waterfront shares, asserting its loan obligation had been extinguished. The Sandiganbayan on 28 January 2008 issued a Resolution authorizing forfeiture implementation and, if necessary, notices of levy/garnishment against assets traceable to the forfeited amounts, expressly listing assets at Banco De Oro (BDO), including Waterfront shares and the IMA Trust Account No. 101-78056-1 in the name of Jose Velarde.
Pursuant to the 28 January 2008 Resolution, an Amended Writ of Execution was issued (19 February 2008). Sheriff reports and subsequent bank submissions showed the IMA Trust Account (which included 450 million Waterfront shares) was under a 2001 BIR constructive distraint and otherwise held by BDO’s Trust Department. At a May 16, 2008 hearing the Sandiganbayan directed memoranda; only the BIR filed one. On 28 May 2008 BDO certified that the P500 million loan to Wellex — evidenced by a promissory note and chattel mortgage dated 4 February 2000 — remained outstanding and that interest payments stopped in 2001. Wellex did not rebut that certification.
On 24 September 2008 the Sandiganbayan (Special Division) held the IMA Trust Account ripe for forfeiture notwithstanding the BIR’s constructive distraint, and directed BDO to deliver/remit P189,700,000 (inclusive of interest) from IMA Trust Account No. 101-78056-1. The Commissioner of Internal Revenue (CIR) and Wellex filed motions for reconsideration on 11 October 2008. By Resolution of 2 April 2009 the Sandiganbayan denied both MRs: it held the CIR’s claim hinged on a not-yet-final tax assessment and that Wellex failed to rebut BDO’s certification nor prove payment of its loan; the court also suggested Wellex could retrieve collaterals by paying the outstanding loan to BDO so BDO...(Subscriber-Only)
Issues:
- Did the Sandiganbayan commit grave abuse of discretion amounting to lack or excess of jurisdiction by issuing the Resolutions dated 24 September 2008 and 02 April 2009 that allegedly expanded the coverage of its 12 September 2007 Decision in Criminal Case No. 26558?
- Did the Sandiganbayan commit grave abuse of discretion in finding that the fund in IMA Trust Account No. 101-78056-1 was traceable to the P189.7 million ill-gotten wealth ...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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