Title
Locsin vs. Sandiganbayan
Case
G.R. No. 134458
Decision Date
Aug 9, 2007
Stockholders of Oriental Petroleum challenged PCGG's sequestration of shares, alleging Marcos-era fraud. Supreme Court upheld Sandiganbayan's denial of amended complaint, citing substantial changes and potential delays.

Case Summary (G.R. No. 134458)

Applicable Law

This case is governed by the 1987 Philippine Constitution, reflecting protections around property rights and legal proceedings. The legal principles also incorporate procedural rules pertaining to amendments of complaints as laid out in the Revised Rules of Civil Procedure.

Case Background

The petitioners, as stockholders of Oriental, claim that a series of transactions leading to the acquisition of shares by former President Marcos and his affiliates were conducted through illegal means, such as coercion and misrepresentation. The original complaint was filed in 1988, initiating a series of legal proceedings, including the inclusion of various respondents from whom the petitioners seek restitution of their allegedly wrongfully taken shares.

Denial of Initial Complaints

Initial attempts by the petitioners to obtain an injunctive relief in the earlier docketed Civil Case S.B. No. 0041 were unsuccessful, leading to the dismissal of both the original and amended complaints. This was cited as a ground for the filing of a new case, Civil Case S.B. No. 0042, which similarly mirrored the earlier complaints but included additional plaintiffs and defendants.

Issues of Forum Shopping

The Sandiganbayan raised the issue of "forum shopping," indicating that the allegations in the new case reflected an attempt to circumvent the earlier dismissals. The petitioners argued that their subsequent filings were lawful and properly conducted, targeting new evidence not previously addressed in the original claims.

The Role of Sequestration Orders

The PCGG's sequestration of shares in April 1986 was a critical point of contention. The petitioners allege that the PCGG took control of Oriental, leading to further mismanagement and losses. They contend that this control facilitated the perpetration of fraud by individuals appointed to manage the firm's affairs under PCGG oversight.

Motion for Leave to Submit Amended Complaint

On October 18, 1989, petitioners filed a Motion for Leave to Admit Amended Complaint to provide additional details on the transactions they claim were fraudulent. This motion was eventually denied by the Sandiganbayan, which of note pointed out that the proposed amendments represented significant changes to the original complaint that could derail the case's progression.

Court's Findings on Amendments

The Sandiganbayan concluded that the amendments were substantial, indicating that they could necessitate new pleadings, responses, and potential delays in the judicial process. The court emphasized its discretion in either granting or denying amendments based on the intent and implications of such requests.

Discussion of Prejudice to Respondents

The court expressed that admitting the amended complaint could result in prejudice to the respondents as they would need to engage with altered allegations, potentially leading to renewed delays and further litigation complexities.

Conclusion on Certification Request

Ultimately, the

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