Case Summary (G.R. No. 94723)
Procedural History
Criminal Cases Nos. 801–805 for serious illegal detention and four counts of rape were filed February 16, 1989, then archived when Bartelli remained at large. On the same day, petitioners filed Civil Case No. 89-3214 for damages with preliminary attachment, obtaining a writ on February 28, 1989. After default and ex parte hearing, the RTC granted ₱1,010,000 plus attorney’s fees and costs on March 29, 1990. Petitioners’ attempt to execute against Bartelli’s foreign currency deposit in China Bank was resisted under CB Circular No. 960, Sec. 113.
Issues Presented
- Whether the Supreme Court may entertain a petition for declaratory relief originally within the RTC’s jurisdiction.
- Whether Sec. 113 of CB Circular No. 960 and Sec. 8 of RA 6426, as amended by PD 1246, exempt a foreign transient’s deposit from garnishment to satisfy a civil judgment.
Petitioners’ Contentions
- Sec. 113 of CB Circular No. 960 is unconstitutional as it:
a. Violates substantive due process by nullifying the right to secure a valid judgment via attachment or execution.
b. Grants an undue class privilege in violation of equal protection.
c. Provides safe haven for criminals who convert ill-gotten funds into foreign currency deposits.
d. Exceeds the Monetary Board’s quasi-legislative authority by impairing procedural rights under Rules 39 and 57.
Respondents’ Contentions
Central Bank
- The exemption is mandated by RA 6426, as amended by PD 1246; the Monetary Board merely implemented statutory provisions.
- The measure is a reasonable exercise of police power to promote economic development, applied uniformly to all foreign currency depositors.
China Banking Corporation - Bound by law and circular; willing to release the funds but legally prevented.
Court’s Analysis on Jurisdiction
- Original jurisdiction over declaratory relief lies with RTC; however, in exceptional cases raising questions of broad public interest and far-reaching legal implications, the Supreme Court may treat the petition as one for mandamus to compel compliance with a writ of execution. The present petition, involving a child’s enforceable civil remedy against a foreign abuser, warrants such treatment.
Court’s Analysis on Applicability of Foreign Currency Exemption
- Sec. 113 of CB Circular No. 960 and Sec. 8 of RA 6426 as amended were designed to attract and protect genuine foreign lenders and long-term investors under the Foreign Currency Deposit and Offshore Banking systems (PD 1034, PD 1035).
- A transient tourist’s deposit, intended for mere safekeeping during a brief visit, falls outside the class of deposits these statutes aimed to encourage.
Constitutional Considerations
- Substantive due process: Denial of execution against Bartelli’s deposit renders the favorable civil judgment meaningless and violates petitioners’ right to judicial relief.
- Equal protection: Applying the exemption to a transi
Case Syllabus (G.R. No. 94723)
Procedural History
- Petitioners sought declaratory relief before the Supreme Court to restrain respondents from enforcing Section 113 of Central Bank Circular No. 960 and to declare it unconstitutional.
- Underlying criminal charges (Serious Illegal Detention; four counts of Rape) were filed by the Makati Investigating Fiscal against Greg Bartelli y Northcott on February 16, 1989.
- Petitioners concurrently filed Civil Case No. 89-3214 in the Regional Trial Court of Makati for damages with a writ of preliminary attachment.
- A writ of preliminary attachment issued on February 28, 1989; China Banking Corporation was garnished on March 1, 1989.
- China Banking Corporation invoked Republic Act No. 1405 and later Section 113 of CB Circular No. 960 to resist garnishment.
- The trial court declared Bartelli in default, heard the case ex parte, and rendered judgment in favor of petitioners on March 29, 1990, awarding over ₱1,000,000 in damages.
- Petitioners attempted execution on Bartelli’s dollar deposits; respondents again invoked the foreign-currency deposit exemption.
- Petitioners elevated the matter to the Supreme Court, praying for declaratory relief and mandamus to enforce the writ of execution.
Facts
- On February 4, 1989, American tourist Greg Bartelli lured 12-year-old Karen Salvacion to his Makati apartment, detained her until February 7, 1989, and raped her ten times.
- Bartelli escaped from Makati Municipal Jail on February 24, 1989 after his arrest.
- Items recovered from Bartelli upon arrest included a dollar check (US $3,903.20), peso and dollar bank accounts, cash, door keys, ID, and a teddy bear used in the abduction.
- Petitioners obtained a writ of preliminary attachment and served garnishment on China Banking Corporation, which refused compliance citing foreign-currency secrecy and exemption rules.
- Notice by publication and default proceedings led to a final civil judgment for damages.
- Despite finality of judgment, respondents refused to