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CHAPTER 2: CONSTRUCTION AND INTERPRETATIONMeaning

o  Construction

  Act or process of discovering and expounding

the meaning and intention of the authors of 

the law where that intention is rendered

doubtful by reason of the ambiguity in its

language or of the fact that the given case is

not explicitly provided for in the law.o  Construction

  Art of seeking the intention of the legislature

in enacting a statute and applying it to a given

case.

Reason

o  Infirmities in the language

o  Limited scope in legislative drafting

Ambiguity Exists in the Following

o  Admits two or more meanings

o Of being understood in more than one way

o  Refers to two or more things at the same time

o  Susceptible of more than one interpretation

o  Literal interpretation leads to unjust or absurd

consequences

o  Statute is in conflict with the Constitution

o  Statute defeats the policy of the legislation

Purpose

o  To ascertain and give effect to the intent of the law

  Case: #1 Caltex v. Palomar (18 SCRA 247) 

Facts:

Held: Whether the promotional scheme of Caltex is covered

by the prohibitive provision of Postal Law requires inquiry

into intended meaning of the words used therein. Lottery

has 3 elements: 1. Prize; 2. Chance; 3. Consideration.

Gratuitous distribution of property by chance does not

constitute ‘lottery’. No consideration is derived from party

receiving the chance. In the present case, no fee is to be

paid, merchandise to be bought, service to be rendered, or

any value to be given for the privilege to participate

Similarities/Distinctions

As To Interpretation Construction

Purpose Ascertain

legislative intent

Ascertain

legislative

intent

Applicability Ambiguity exists Ambiguity exists

Manner Discover true

meaning

Draw

conclusions

Reference Limited to

written text

Transcends text

of statute

Type of Aid Intrinsic aids Extrinsic aids

Definition of Terms

o  Legislative Purpose: reason why statute was enacted

by the legislature

o  Legislative Meaning: What the law comprehends

covers, or embraces

o  Legislative Intent: The design, plan, purpose or ends

sought to be achieved by the legislature in enacting a

statute

  Case: #2 Federation of Free Farmers v, Court of 

Appeals (G.R. No. L-41161) 

Facts:

Held: The literal import, if given effect, will defeat thepurpose of Act which is to grant laborers share in sugar

produce. Legislative meaning is to give laborers share for as

long as sugar is produced and planters receive increased

participation. Thus, legislative intent is to make Act

operative irrespective of whether there exists a milling

agreement between central and sugar planters.

  Case: #3 Garcia v. SSS (G.R. No. 170735) 

Facts:

Held: The liability imposed under SSS Law does not

preclude liability for un-remitted amount. Relevant to Sec

28(f) is Sec22(a) of the same law, which provides that“every employer is required to deduct and remit such

contributions…” It is a cardinal rule in Statutory

Construction that in interpreting the meaning and scope of 

a term used in the law, a careful review of the whole law

involved, as well as the intendment of the law, must be

made.

Legislative

purpose

Reason why

statute was

enacted by

legislature

To Grant laborers

share in sugar

produce

Meaning What the law

comprehends

covers or

embraces

To give laborers

share when sugar

is produced and

planters receive

increased

participation

Intent Ends sought to be

achieved by

legislature in

enacting the

statute

To make act

operative

irrespective of 

whether

agreement

between central

and sugar planters

Powers to Construe

o  General: Legislature may not overrule judicial

construction

o  Reason: Power to construe is a judicial function

o  Exception: Legislature may adopt rules of statutory

construction as part of provisions of statute.

o  Examples: Art 10 of CC and Sec 4 of Labor Code

  Case: #4 Perfecto v. Meer (G.R. No. L-2348) 

Facts:

Held: Collection of income tax from salaries of judicial

officers is diminution of their salaries in violation of the

constitutional provision. Reason behind the exemption, is

to preserve the independence of Judiciary, which is of far

greater importance than any revenue that could come from

taxing their salaries, not be pressured by Congress to be

reduced their salaries.

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CHAPTER 2: CONSTRUCTION AND INTERPRETATION  Case: #5 Endencia v. David (93 Phil. 696) 

Facts:

Held: Interpretation of the Constitution and of statutes is

the exclusive jurisdiction of judiciary. In enacting a law,

legislature may not provide therein that it be interpreted in

such a way that it may not violate Constitutional

prohibition, thereby tying the hands of the courts in their

task of interpreting said statute, especially when theinterpretation provided in said statute runs counter to

previous interpretation already given in a case by the

Supreme Court.

Basic Guidelines in Construction of Laws

o  Verba Legis: where statute is plain and unambiguous it

must be given its literal meaning and applied without

interpretation

  Basis: index animo sermo est  

  Presumption:

  Words used by legislature in statute correctly

express its intention or will  Legislature says in a statute what it means and

means in a statute what it says there

  Case: #6 Republic v. Lacap (G.R. No. 158253) 

Facts:

Held: The plain meaning rule or verbal legis in statutory

construction is that if statute is clear, plain and free from

ambiguity, it must be given its literal meaning and applied

without interpretation. The wordings of RA 4566 are clear.

It does not declare, expressly or impliedly, as void,

contracts entered into by a contractor.

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  Case: #7 Davao Oriental Electric v. Province of 

Davao Oriental (G.R. No. 170910) 

Facts:

Held: Fiscal Incentive Review Board Resolution is crystal

clear in stating that “tax exemption privileges… are restored

effective July 1, 1987.” The language of the law is plain and

unambiguous. When the language of the law is clear and

unequivocal, the law must be taken to mean exactly what it

says.

  Case: #8 Pagcor v. Phil. E-Gaming (586 SCRA 658) 

Facts:

Held: In its ordinary sense, “game” is a sport, pastime, or

contest; while “amusement” is pleasurable occupation of 

senses, diversion, or employment. On the other hand,

“game of chance” is “game in which chance rather than skill

determines outcome,” while “gambling” is defined as

“making a bet” or “play for value against an uncertain event

in hope of gaining something of value.” In fine, RA 7903 did

not grant to Zambo Ecozone power to operate and/or

license games of chance/gambling.

o  Stare Decisis (stand by decisions): when the SC has

once laid down principle of law as applicable to certain

state of facts. It will adhere to that principle and apply

it to all future cases where the facts are substantiallythe same. 

  Basis: Stare decisis et non quieta movere; Art. 8 of 

the New Civil Code 

  Rationale: 

  For stability and certainty in the legal system  

  Case: #9 Agencies Exquisite v. Commissioner (578

SCRA 539)

Facts:

Held: Under the doctrine of Stare decisis of non quieta

movere, it behooves the Court to apply its previous ruling inLhuillier to the case under consideration. Once a case has

been decided one way, any other case involving exactly the

same point of issue, as in the present case involving exactly

the same point at issue, as in the present case, should be

decided in the same manner.

o  Non-Retroactivity of Judicial Rulings

  Basis: Art. 4 of the New Civil Code 

  Rationale: 

  Not to divest vested rights or to impair

obligations and contracts 

 Not to deprive law of its quality of fairnessand justice 

  Case: #10 People v. Jabinal (55 SCRA 607)

Facts:

Held: When Jabinal was appointed Secret Agent in 1962,

the prevailing doctrine was Macarandang (1959) and

Lucero (1958). The doctrine laid down therein was part of 

 jurisprudence, hence, of the law of the land, at the time

Jabinal was found in possession of the firearm. True,

doctrine was overruled in People vs. Mapa in 1967, but the

new doctrine should be applied prospectively, and should

not apply to parties

  Case: #11 CEMCO Holdings v. National Life (G.R.

No. 171815)

Facts:

Held: What is applicable is the ruling of SEC dated 14 Feb

2005 abandoning the opinion embodied in the latter dated

27 July 2004. The principle of prospective application of 

new judicial doctrine does not mean that if a new rule is

laid down in a case, it should not be applied in that case but

that said rule should apply prospectively to cases arising

afterwards.

Prospectively arising afterwards not pending controversy

Limitations on Power to Construe 

o  Courts may not 

  Enlarge the scope of a statute 

  Insert into law what it thinks should be in it 

  Revise action of the legislature 

  Rewrite the law 

  Interpret into the law a requirement not

prescribed 

  Engraft any limitations in its operation or scope 

  Case: #12 Canet v. Decena (G.R. No. 155344)

Facts:

Held: Tax ordinances relied upon by Canet contain general

provisions for issuance of business permits but do notcontain specific provisions relating to operation of cockpits.

Courts may not, in the guise of interpretation, enlarge the

scope of statute and include therein situations not provided

nor intended by lawmakers.