Case Summary (G.R. No. 104637-38)
Factual Background
On March 26, 1986, the CIIF sold 33,133,266 shares of San Miguel Corporation to Andres Soriano III. Upon partial payment of the purchase price, the shares were sequestered by the Presidential Commission on Good Government (PCGG) under the guise of recovering allegedly ill-gotten wealth. Subsequent legal disputes ensued, culminating in a significant reconsideration of the sale terms and their implications for public funds, as the coco-levy funds involved were deemed public assets.
Legal Developments and Compromise Agreement
Following the initial disputes, in March 1990, a Compromise Agreement was reached between the SMC Group and UCPB Group, wherein the sale of the shares corresponding to the first installment was recognized as valid, while the agreements for the second, third, and fourth installments were rescinded. The agreement stipulated that disputes could later be contested in the Sandiganbayan, with explicit acknowledgment of the shares' public character as they were subject to sequestration.
Opposition to Compromise Agreement
The Solicitor General, representing the Republic of the Philippines, opposed the Compromise Agreement, asserting that the coco-levy funds were public funds and thus beyond private disposition. The Solicitor General's contention underscored the need for transparency and the protection of public interests against potential disadvantageous settlements involving government-derived assets.
Intervention Motions
In the proceeding, COCOFED and Eduardo Cojuangco Jr. sought to intervene, claiming beneficial interests over the shares. COCOFED asserted that they represented the rightful interests of coconut farmers regarding the coco-levy funds, and their legal standing as stakeholders warranted intervention in the dispute.
Sandiganbayan's Jurisdiction and Decisions
The Sandiganbayan, while approaching the complexity of ownership and the public nature of the assets involved, upheld its jurisdiction over the matter. It addressed the nuances of the Compromise Agreement, emphasizing that any approval must consider the public assets' implications and the legitimacy of the transactions under scrutiny.
Findings of the Supreme Court
The Supreme Court ultimately found no grave abuse of discretion by the Sandiganbayan in its decisions for the delivery of shares and payment of dividends, emphasizing the unanimous acknowledgment of the shares' sequestered status. The Court noted that the sequestered shares' value was under litigation, and any compromise involving public funds necessitated careful oversight by the Sandiganbayan.
Rationale for Denial of Petitions
The petitions filed by the petitioners were dismissed on the grounds that the Sandiganbayan acted within its jurisdiction to protec
...continue readingCase Syllabus (G.R. No. 104637-38)
Case Background
- The case involves a dispute over the ownership of shares in San Miguel Corporation (SMC) originally part of the Coconut Industry Investment Fund Holding Companies (CIIF).
- On March 26, 1986, CIIF sold 33,133,266 shares of SMC to Andres Soriano III and related entities, with the first installment of P500 million paid on April 1, 1986.
- The shares were registered under Anscor-Hagedorn Securities, Inc. (AHSI).
- On April 7, 1986, the shares were sequestered by the Presidential Commission on Good Government (PCGG), halting further payments by the SMC Group (petitioners) and leading to a rescission of the sale by the UCPB Group.
Judicial Proceedings
- In June 1986, the UCPB Group filed a complaint in the Makati Regional Trial Court (RTC) for confirmation of rescission with damages.
- The petitioners contested the jurisdiction of the RTC, claiming primary jurisdiction belonged to the PCGG due to the sequestered status of the shares.
- The Supreme Court upheld the petitioners' claims, dismissing the RTC case in favor of letting the parties present their claims before the Sandiganbayan.
Compromise Agreement
- In March 1990, the petitioners and the UCPB Group reached a Compromise Agreement, recognizing the validity of the sale of the first installment of shares and rescinding the sale of the remaining installments.
- The agreement included provisions to revert shares to the SMC treasury for future dispersal and payment of an arbitration fee in the form of 5,500,000 shares to the PCGG.