10 Manila Prince Vs GSIS
10 Manila Prince Vs GSIS
10 Manila Prince Vs GSIS
SUPREMECOURTREPORTSANNOTATEDVOLUME267
408
EN BANC.
409
409
1/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
410
2/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
3/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
411
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
4/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
412
5/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
413
6/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
414
7/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
415
8/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
416
9/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
417
10/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
418
11/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
419
12/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
420
13/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
421
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
14/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
422
15/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
423
16/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
424
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
17/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
Same Same Same Bids and Bidding 1 submit that the right
of preference of a Filipino bidder arises only if it tied the bid of the
foreign bidder.To date, Congress has not enacted a law defining
the degree of the preferential right. Consequently, we must turn
to the rules and regulations of respondents Committee on
Privatization and GSIS to determine the degree of preference that
petitioner is entitled to as a qualified Filipino in the subject sale.
A tearless look at the rules and regulations will show that they
are silent on the degree of preferential right to be accorded a
qualified Filipino bidder. Despite their silence, however, they
cannot be read to mean that they do not grant any degree of
preference to petitioner for paragraph 2, Section 10, Article XII of
the Constitution is deemed part of said rules and regulations.
Pursuant to legal hermeneutics which demand that we interpret
rules to save them from unconstitutionality, I submit that the
right of preference of petitioner arises only if it tied the bid of
Renong Berhad. In that instance, all things stand equal, and
petitioner, as a qualified Filipino bidder, should be preferred.
Same Same Same While the Filipino First Policy requires
that we incline to a Filipino, it does not demand that we wrong an
alien.We support the Filipino First Policy without any
reservation. The visionary nationalist Don Claro M. Recto has
warned us that the greatest tragedy that can befall a Filipino is to
be an alien in his own land. The Constitution has embodied
Rectos counsel as a state policy and our decision should be in sync
with this policy. But while the Filipino First Policy requires that
we incline to a Filipino, it does not demand that we wrong an
alien. Our policy makers can write laws and rules giving favored
treatment to the Filipino but we are not free to be unfair to a
foreigner after writing the laws and the rules. After the laws are
written, they must be obeyed as written, by Filipinos and
foreigners alike. The equal protection clause of the Constitution
protects all against unfairness. We can be proFilipino without
unfairness to foreigners.
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
18/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
425
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
19/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
426
20/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
427
WINNING
(Office
3
of
the
Government
Corporate
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
21/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
428
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
22/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
8
429
23/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
_______________
9
430
24/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
1111Am
Jur. 606.
431
431
25/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
16 Am Jur. 2d 281.
13
Id, p. 282.
432
432
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
26/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
SeeNote 12.
15
16
608.
433
433
27/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
Am Jur 2d 283284.
Sec. 10, first par., reads: The Congress shall, upon recommendation of
the economic and planning agency, when the national interest dictates,
reserve to citizens of the Philippines or to corpora
434
434
28/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
certain areas of investments. The Congress shall enact measures that will
encourage the formation and operation of enterprises whose capital is
wholly owned by Filipinos.
Sec. 10, third par., reads: The State shall regulate and exercise
authority over foreign investments within its national jurisdiction and in
accordance with its national goals and priorities.
19
20
21
that [t]he State values the dignity of every human person and guarantees
full respect for human. rights.
22
Sec. 12, Art. II, provides that [t]he State recognizes the sanctity of
family life and shall protect and strengthen the family as a basic
autonomous social institution. It shall equally protect the life of the mother
and the life of the unborn from conception. The natural and primary right
and duty of parents in the rearing of the youth for
435
435
24
building, the
promotion of social justice, and 26the values
25
of education. Tolentino v. Secretary of Finance refers to
constitutional
provisions on social justice and human
27
rights and on
_______________
civic efficiency and the development of moral character shall receive the
support of the government
23
Sec. 13, Art. II, provides that [t]he State recognizes the vital role of
the youth in nationbuilding and shall promote and protect their physical,
moral, spiritual, intellectual, and social wellbeing. It shall inculcate in the
youth patriotism and nationalism, and encourage their involvement in
public and civic affairs.
24 Sec. 1, Art. XIII (Social Justice and Human Rights), provides that
[t]he Congress shall give highest priority to the enactment of measures that
protect and enhance the right of all the people to human dignity, reduce
social, economic and political inequalities, and remove cultural inequities
by equitably diffusing wealth and political power for the common good.
To this end, the State shall regulate the acquisition, ownership, use, and
disposition of property and its increments. Sec. 2, Art. XIII, provides that
[t]he promotion of social justice shall include the commitment to create
economic opportunities based on freedom of initiative and selfreliance.
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
29/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
25
nonformal,
informal,
and
indigenous
learning,
27
436
30/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
Sec. 1, Art. XIV, provides that [t]he State shall protect and promote
the right of all citizens to quality education at all levels of education and
shall take appropriate steps to make such education accessible to all.
29
30
that [t]he maintenance of peace and order, the protection of life, liberty,
and property, and the promotion of the general welfare are essential for the
enjoyment by all the people of the blessings of democracy.
31
32
33
Sec. 17, Art. II, provides that [t]he State shall give priority to
437
31/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
36
The guest list of the Manila Hotel includes Gen. Douglas MacArthur,
438
The history of the hotel has been chronicled in the book The
Manila Hotel: The Heart and Memory of a City.37 During
World War II the hotel was converted by the Japanese
Military Administration into a military headquarters,
When the American forces returned to recapture Manila
the hotel was selected by the Japanese together with
Intramuros as the two (2) places for their final stand.
Thereafter, in the 1950s and 1960s, the hotel became the
center of political activities, playing host to almost every
political convention. In 1970 the hotel reopened after a
renovation and reaped numerous in
________________
Emperor Akihito of Japan, President Dwight Eisenhower of U.S.A.,
President Nguyen Van Thieu of Vietnam, President Park Chung Hee of
Korea, Prime Minister Richard Holt of Australia, Prime Minister Keith
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
32/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
439
33/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
440
34/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
xxxx
MR. RODRIGO. Before we vote, may I request that the
amendment be read again.
MR. NOLLEDO. The amendment will read: IN THE GRANT
OF RIGHTS, PRIVILEGES AND CONCESSIONS COVERING
THE NATIONAL ECONOMY AND PATRIMONY, THE STATE
SHALL GIVE PREFERENCE TO QUALIFIED FILIPINOS." And
the word Filipinos here, as intended by the proponents, will
include not only individual Filipinos but also 40Filipinocontrolled
entities or entities fullycontrolled by Filipinos.
607.
40
Id., p. 612.
441
441
35/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
Id., p. 616.
42
Id., p. p. 606.
43
442
36/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
443
37/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
46
444
38/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
yet, nor are they under obligation to enter into one with the
highest bidder. For in choosing the awardee respondents
are mandated to abide by the dictates of the 1987
Constitution the provisions of which are presumed to be
known to all the bidders and other interested parties.
Adhering to the doctrine of constitutional supremacy,
the subject constitutional provision is, as it should be,
impliedly written in the bidding rules issued by respondent
GSIS, lest the bidding rules be nullified for being violative
of the Constitution. It is a basic principle in constitutional
law that all laws and contracts must conform with the
fundamental law of the land. Those which violate the
Constitution lose their reason for being.
Paragraph V.J.1 of the bidding rules provides that [i]f
for any reason the Highest Bidder cannot be awarded the
Block of Shares, GSIS may offer this to other Qualified
Bidders that have validly submitted bids provided that
these Qualified Bidders are willing to match the highest bid
in terms of price per share.47 Certainly, the constitutional
mandate itself is reason enough not to award the block of
shares immediately to the foreign bidder notwithstanding
its submission of a higher, or even the highest, bid. In fact,
we cannot conceive of a stronger reason than the
constitutional injunction itself.
In the instant case, where a foreign firm submits the
highest bid in a public bidding concerning the grant of
rights, privileges and concessions covering the national
economy and
_______________
47
See Note 8.
445
445
39/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
446
40/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
447
41/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
Keynote
Address
at
the
ASEAN
Regional
Symposium
on
448
42/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
The Manila Hotel or, for that matter, 51% of the MHC,
is not just any commodity to be sold to the highest bidder
solely for the sake of privatization. We are not talking
about an ordinary piece of property in a commercial
district. We are talking about a historic relic that has
hosted many of the most important events in the short
history of the Philippines as a nation. We are talking about
a hotel where heads of states would prefer to be housed as
a strong manifestation of their desire to cloak the dignity of
the highest state function to their official visits to the
Philippines. Thus the Manila Hotel has played and
continues to play a significant role as an authentic
repository of twentieth century Philippine history and
culture. In this sense, it has become truly a reflection of the
Filipino soula place with a history of grandeur a most
historical setting that has played a part in the shaping of a
country.51
This Court cannot extract rhyme nor reason from the
determined efforts of respondents to sell the historical
landmarkthis Grand Old Dame of hotels in Asiato a
total stranger. For, indeed, the conveyance of this epic
exponent of the Filipino psyche to alien hands cannot be
less than mephistophelian for it is, in whatever manner
viewed, a veritable alienation of a nations soul for some
pieces of foreign silver. And so we ask: What advantage,
which cannot be equally drawn from a qualified Filipino,
can be gained by the Filipinos if Manila Hoteland all that
it stands foris sold to a nonFilipino? How much of
national pride will vanish if the nations cultural heritage
is entrusted to a foreign entity? On the
_______________
50
Enrique M. Fernando, p. 5.
51
449
43/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
450
CONCURRING OPINION
PADILLA, J.:
I concur with the ponencia of Mr. Justice Bellosillo. At the
same time, I would like to expound a bit more on the
concept of national patrimony as including within its scope
and meaning institutions such as the Manila Hotel.
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
44/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
451
45/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
ed., p. 72.
5
(19341935), p. 507.
7
Id., p. 562.
452
452
46/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
453
SEPARATE OPINION
VITUG, J.:
I agree with Mr. Justice Josue N. Bellosillo on his clearcut
statements, shared by Mr. Justice Reynato S. Puno in a
well written separate (dissenting) opinion, that:
First, the provision in our fundamental law which
provides that "(i)n the grant of rights, privileges, and
concessions covering the national economy and patrimony,
1
the State shall give preference to qualified Filipinos" is
selfexecutory. The provision verily does not need, although
it can obviously be amplified or regulated by, an enabling
law or a set of rules.
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
47/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
454
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
48/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
GUIDELINES
PREQUALIFICATION
AND
AND
PUBLIC
PROCEDURES:
BIDDING
OF
SECOND
THE
MHC
455
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
the lease of public market stalls." This Court
upheld the
49/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
5
7104
8
Id., at 309.
456
456
50/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
Art. II, 19: The State shall develop a selfreliant and independent
See Villegas v. Hiu Chiung Tsai Pao Ho, 86 SCRA 270 (1978)
Petitioner passed the criteria set forth in the GUIDELINES, Part IV,
457
51/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
14
458
52/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
xxx
In the grant of rights, privileges, and concessions covering the
national economy and patrimony, the State shall give preference
to qualified Filipinos.
The State shall regulate and exercise authority over foreign
investments within its national goals and priorities.
459
53/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
460
54/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
forceful currents that push the river or people towards the future
and if you look the other way, you progress.
Indeed, tradition and progress are the same, for progress
depends on the kind of tradition. Let us not jettison the tradition
of the Manila Hotel and thereby repeat our colonial history.
I grant, of course, that men of the law can see the same subject
in different lights.
I remember, however, a Spanish proverb which says"He is
always right who suspects that he makes mistakes. On this note,
I say that if I have to make a mistake, I would rather err
upholding the belief that the Filipino be first under his
Constitution and in his own land.
I vote to GRANT the petition.
DISSENTING OPINION
PUNO, J.:
This is a petition for prohibition and mandamus filed by
the Manila Prince Hotel Corporation, a domestic
corporation, to stop the Government Service Insurance
System (GSIS) from selling the controlling shares of the
Manila Hotel Corporation to a foreign corporation.
Allegedly, the sale violates the second paragraph of Section
10, Article XII of the Constitution.
Respondent GSIS is a governmentowned and controlled
corporation, It is the sole owner of the Manila Hotel which
it operates through its subsidiary, the Manila Hotel
Corpora
461
461
55/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
THE
WINNING
BIDDER/STRATEGIC
The party that accomplishes the steps set forth below will be declared the
Winning Bidder/Strategic Partner and will be awarded the Block of
Shares:
FirstPass the prequalification process
________________
Introduction
and
Highlights,
Guidelines
and
Procedures:
Second
The four bidders who previously prequalified for the first bidding, namely, ITT
462
462
and
execute
the
necessary
contracts
with
56/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
the
requisite
management
expertise
and/or
international
463
57/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
expertise,
track
record,
and
b. Financial capability.
c. Feasibility and acceptability of the proposed strategic plan
for the Manila Hotel.
5. The PBAC will shortlist such number of Applicants as it
may deem appropriate.
464
464
58/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
B. BLOCK OF SHARES
A range of Nine Million (9,000,000) to Fifteen Million Three Hundred
Thousand (15,300,000) shares of stock, representing Thirty Percent to
FiftyOne Percent (30%51%) of the issued and outstanding shares of
MHC, will be offered in the Public Bidding by the GSIS. The Qualified
Bidders will have the option of determining the number of shares within
the range to bid for. The range is intended to attract bidders with
different preferences and objectives for the operation and management of
The Manila Hotel.
465
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
59/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
D. TRANSFER COSTS
xxx
E. OFFICIAL BID FORM
1. Bids must be contained in the prescribed Official Bid
Form, a copy of which is attached as Annex IV. The
Official Bid Form must be properly accomplished in all
details improper accomplishment may be a sufficient
basis for disqualification.
2. During the Public Bidding, the Qualified Bidder will
submit the Official Bid Form, which will indicate the
offered purchase price, in a sealed envelope marked
OFFICIAL BID."
F. SUPPORTING DOCUMENTS
During the Public Bidding, the following documents should be submitted
along with the bid in a separate envelope marked SUPPORTING
DOCUMENTS":
2. BID SECURITY
a, The Qualified Bidder should deposit ThirtyThree Million
Pesos (P33,000,000.00), in Philippine currency as Bid
Security in the form of:
i. Managers check or unconditional demand draft payable to
the Government Service Insurance System and issued by
a reputable banking institution duly licensed to do
business in the Philippines and acceptable to GSIS or
ii. Standby letter of credit issued by a reputable banking
institution acceptable to the GSIS.
466
466
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
60/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
61/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
467
62/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
2.
468
63/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
469
WINNING
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
BID
64/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
470
65/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
471
66/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
x x x
In the grant of rights, privileges, and concessions covering the
national economy and patrimony, the State shall give preference to
qualified Filipinos.
xxx
Bernas were invited by the Court as amicus curiae to shed light on its
meaning.
472
472
67/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
R.C.L. Sec. 52, p. 57 [1915] see also Willis v. St. Paul Sanitation Co., 48 48
Minn. 140, 50 N.W. 1110, 31 A.J.R. 626, 16 L.R.A. 281 11892] State ex
rel. Schneider v. Kennedy, 587 P. 2d 844, 225 Kan 13 [1978].
7
473
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
68/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
9
Cooley, supra, at 171 6 R.C.L. Sec. 53, pp. 5758 Brice v. McDow,
116 S.C. 324, 108 S.E. 84, 87 [1921] see also Gonzales, Philippine
Constitutional Law, p. 26 [1969].
10
11
Way v. Barney, 116 Minn. 285, 133 N.W. 801, 804 38 L.R.A. (N.S.)
648, Ann. Cas. 1913 A, 719 [1911] Brice v. McDow, supra, at 87 Morgan
v. Board of Supervisors, 67 Ariz. 133, 192 P. 2d 236, 241 [1948] Gonzales,
supra.
12
1638.
13
Article III, Section 2 see Webb v. de Leon, 247 SCRA 652 [1995]
People v. Saycon, 236 SCRA 325 [1994] Allado v. Diokno 232 SCRA 192
[1994] Burgos v. Chief of Staff, 133 SCRA 800 [1984]Yee Sue Kuy v.
Almeda, 70 Phil. 141 [1940] Pasion Vda. De Garcia v. Locsin, 65 Phil. 689
[1938] and a host of other cases.
14
Article III, 12, Section 12, pars. 1 to 3 People v. Alicando, 251 SCRA
293 [1995] People v. Bandula, 232 SCRA 566 [1994] People v. Nito, 228
SCRA 442 [1993] People v. Duero, 104 SCRA 319 [1981] People v. Galit,
135 SCRA 465 119851 and a host of other cases.
15
Article III, Section 14 People v. Digno, 250 SCRA 237 [1995] People
v. Godoy, 250 SCRA 676 [1995] People v. Colcol, 219 SCRA 107 [1993]
Borja v. Mendoza, 77 SCRA 422 [1977] People v. Dramayo, 42 SCRA 59
[1971] and a host of other cases.
16
474
Rights,"
21
and
69/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
21
Erdman v. Mitchell, 207 Pa. St. 79, 56 Atl. 327, 99 A.S.R. 783, 63 L.R.A.
534 [1903] see Ninth Decennial Digest Part I, Constitutional Law, (Key
No. 28), pp. 16381639.
18
383, 70111. App. 2d 254 [1966] People v. Buellton Dev. Co., 136 P. 2d 793,
796, 58 Cal. App. 2d 178 [1943] Bordy v. State, 7 N.W. 2d 632, 635, 142
Neb. 71411943] Cohen v. City of Chicago, 36 N.E. 2d 220, 224, 377 111.
221 [1941].
19
Constitutional Law, Sec. 48, p. 100 6 R.C.L. Sec. 54, p. 59 see also State
ex rel. Noe v. Knop La. App. 190 So. 135, 142 [1939] State ex rel. Walker
v. Board of Commrs. for Educational Lands and Funds, 3 N.W. 2d 196,
200, 141 Neb. 172 [1942] Maddox v. Hunt, 83 P. 2d 553, 556, 83 Okl. 465
[1938].
20
22
475
70/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
24
25
Congress had previously passed the Retail Trade Act (R.A. 1180) the
Private Security Agency Act (R.A. 5487 the law on engaging in the rice
and corn industry (R.A. 3018, P.D. 194), etc.
26
476
71/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
affirmed our
ruling in the landmark case of Lao Ichong v.
28
Hernandez, where we upheld the discretionary authority
29
of Congress to Filipinize certain areas of investments. By
reenacting the 1973 provision, the first paragraph of
Section 10 affirmed the power of Congress to nationalize
certain areas of investments in favor of Filipinos.
The second and third paragraphs of Section 10 are
different. They are directed to the State and not to
Congress alone which is but one of the three great branches
of our government. Their coverage is also broader for they
cover the national economy and patrimony and foreign
investments within [the] national jurisdiction and not
merely certain areas of investments. Beyond debate, they
cannot be read as granting Congress the exclusive power to
implement by law
________________
27
29
vol. II [1988]. The Lao lchong case upheld the Filipinization of the retail
trade and implied that particular areas of business may be Filipinized
without doing violence to the equal protection clause of the Constitution.
477
477
72/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
ed., p. 72. The word patrimony first appeared in the preamble of the
1935 Constitution and was understood to cover everything that belongs to
the Filipino people, the tangible and the material as well as the intangible
and the spiritual assets and possessions of the nation (Sinco, Philippine
Political Law, Principles and Concepts [1962 ed.], p. 112 Speech of
Delegate Conrado Benitez defending the draft preamble of the 1935
Constitution in Laurel, Proceedings of the Constitutional Convention, vol.
III, p. 325 [1966]).
478
478
73/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
Jubilee celebration of the Hotel in 1987 see The Manila Hotel: The Heart
and Memory of a City.
32
479
74/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
Service Insurance Act of 1977" amended Commonwealth Act No. 186, the
Government Service Insurance Act of 1936.
480
480
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
75/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
36
37
38
481
76/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
engaging in the hotel business. Republic Act No. 7042, entitled the
Foreign Investments Act of 1991" was enacted by Congress to attract,
promote and welcome x x x foreign investments x x x in activities which
significantly contribute to national industrialization
482
482
77/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
483
the need for alien assistance, the greater the degree of the
right of preference can be given to Filipinos and vice versa.
Again, it should be stressed that the right and the duty
to determine the degree of this privilege at any given time
is addressed to the entire State. While under our
constitutional scheme, the right primarily belongs to
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
78/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
484
79/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
485
80/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
486
81/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
487
Constitution.
(National
Housing
Corporation
vs.
Commission on Audit, 226 SCRA 55 [1993])
R.A. No. 7181 does not mandate any sequencing for the
disposition of shares in governmentowned corporations
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
82/83
8/19/2016
SUPREMECOURTREPORTSANNOTATEDVOLUME267
being
privatized.
(Bagatsing
vs.
Privatization, 246 SCRA 334 [1995])
Committee
on
o0o
Copyright2016CentralBookSupply,Inc.Allrightsreserved.
http://central.com.ph/sfsreader/session/00000156a2fbf8eefd587287003600fb002c009e/t/?o=False
83/83