IV. DIGEST Spouses Mirasol vs. Court of Appeals

JAQ
Case: G.R. No. 128448

Topic: Who may exercise judicial review
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CASE FACTS
 The Mirasols are sugarland owners and planters.

 Philippine National Bank (PNB) financed the Mirasols' sugar production venture FROM 1973-1975 under a crop loan financing
scheme. The Mirasols signed Credit Agreements, a Chattel Mortgage on Standing Crops, and a Real Estate Mortgage in favor
of PNB.
 The Chattel Mortgage empowered PNB to negotiate and sell the latter's sugar and to apply the proceeds to the payment of their
obligations to it.
 President Marcos issued PD 579 in November, 1974 authorizing Philippine Exchange Co., Inc. (PHILEX) to purchase sugar
allocated for export and authorized PNB to finance PHILEX's purchases. The decree directed that whatever profit PHILEX
might realize was to be remitted to the government.
 The government offices and entities tasked by existing laws and administrative regulations to oversee the sugar export pegged
the purchase price of export sugar in crop years 1973-1974 and 1974-1975 at P180.00 per picu.
 PNB continued to finance their sugar production. Later on, Petitioners, believing that the proceeds were more than enough to
pay their obligations, petitioners asked PNB for an accounting of the proceeds which it ignored.
 Petitioners continued to avail of other loans from PNB and to make unfunded withdrawals from their accounts with said bank.
PNB asked petitioners to settle their due and demandable account of 15,964,252.93.00 PHP. But even after the auction sale
PNB was still left with 12,551, 252.93.
 As a result, petitioners, conveyed to PNB real properties by way of dacion en pago still leaving an unpaid amount. PNB
proceeded to extrajudicially foreclose the mortgaged properties. PNB still had a deficiency claim.
 Petitioners continued to ask PNB to account for the proceeds, insisting that said proceeds, if properly liquidated, could offset
their outstanding obligations. PNB remained adamant in its stance that under P.D. No. 579, there was nothing to account since
under said law, all earnings from the export sales of sugar pertained to the National Government.
 On August 9, 1979, the Mirasols filed a suit for accounting, specific performance, and damages against PNB.
PETITIONER ARGUMENTS
 Petitioner contention is that EO 262-A is unconstitutional insofar as it authorizes outright confiscation of the carabao or
carabeef being transported across provincial boundaries.
 He claim is that the penalty is invalid because it is imposed without according the owner a right to be heard before a
competent and impartial court as guaranteed by due process.
 He challenges that it is an improper exercise of the legislative power by the former President under Amendment no. 6 of the
1973 constitution.
RESPONDENT ARGUMENTS – N/A
ISSUES:
1. Whether or not the trial courts can adjudicate on the constitutionality of a statue.
2. Whether or not the SC can exercise judicial review
DECISION – Petition is DENIED and decision of respondent court is AFFIRMED.
I.
It is settled that Regional Trial Courts have the authority and jurisdiction to consider the constitutionality of a statute,
presidential decree, or executive order. The Constitution vests the power of judicial review or the power to declare a law, treaty,
international or executive agreement, presidential decree, order, instruction, ordinance, or regulation not only in this Court, but in all
Regional Trial Courts.
II.
Petitioners now ask this Court to exercise its power of judicial review. Jurisprudence has laid down the following requisites for the
exercise of this power:
- First, there must be before the Court an actual case calling for the exercise of judicial review.
- Second, the question before the Court must be ripe for adjudication.
- Third, the person challenging the validity of the act must have standing to challenge.
- Fourth, the question of constitutionality must have been raised at the earliest opportunity, and lastly, the issue of
constitutionality must be the very lis mota of the case.
As a rule, the courts will not resolve the constitutionality of a law, if the controversy can be settled on other grounds. The policy of the
courts is to avoid ruling on constitutional questions and to presume that the acts of the political departments are valid, absent a clear and
unmistakable showing to the contrary. To doubt is to sustain. This presumption is based on the doctrine of separation of powers. This
means that the measure had first been carefully studied by the legislative and executive departments and found to be in accord with the
Constitution before it was finally enacted and approved. The present case was instituted primarily for accounting and specific
performance. The Court of Appeals correctly ruled that PNB's obligation to render an accounting is an issue, which can be determined,
without having to rule on the constitutionality of P.D. No. 579. In fact there is nothing in P.D. No. 579, which is applicable to PNB's
intransigence in refusing to give an accounting. The governing law should be the law on agency, it being undisputed that PNB acted as
petitioners' agent. In other words, the requisite that the constitutionality of the law in question be the very lis mota of the case is absent.
Thus we cannot rule on the constitutionality of P.D. No. 579.
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JAQ

Case: G.R. No. 128448

 The Mirasols are sugarland owners and planters.

DECISION – Petition is DENIED and decision of respondent court is AFFIRMED.

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