group 2 full cases, digests, with provisions(sections 28, 29, 30 and 32)

8/17/2019 GROUP 2 Full Cases, Digests, With Provisions(Sections 28, 29, 30 and 32)

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1GROUP 2

SECTIONS 28, 29, 30 & 32

FULL CASES AND DIGESTS

MEMBERS CASE SECTIO

N

PAGE No.

Fullcase

Digest

Guimbuga!

Ma"ico

#ug Cete$ %s. &ue'o Cit( (G.R. No. 144101, June 29, 2004)

28 2 to 9 9 to 10

)uaite'! *e Ab$a +alle( College %s. A,uio

(G.R. No. L-39086, June 15, 1988)

28 10 to 15 16

Sa-ac! Amel Osmea %s. O$bos

(GR No. 99886, !"#$ 31, 1993)

29 17 to 22 22 to 24

Maa(o/! C"a$it( )o( Agli0a( %s. Rui'

(G.R. No. 45459, !"#$ 13, 193%)

29 24 to 27 28

*ia-ag! F$a'i Dia' %s. CA

(G.R. No. 109698, e#e'e" 5,1994)

30 29 to 30 30 to 31

Mag1usa! *a$e

S"eila

**'oe"!*o"++

Fi$st #e0ato Ce$amics! Ic. %s.

CA (G.R. No. 1105%1, !"#$ 10,1994)

30 31 to 36 36 to 37

Goa/a! E$ic"a )o( Subic Ba( Met$o0olita

Aut"o$it( %s. COME#EC

(G.R. No. 125416, Se*e'e" 26,

1996)

32 38 to 46 46 to 47


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2

LEGISLATIVE DEPARTMENT(ARTICLE VI

SECTION 2! T$e "ue o *!/!*on $! e uno"' !n eu*!e. T$e Con"e $! eoe ! "o"ee *e' o *!/!*on.

T$e Con"e '!, !, !u*$o"7e *$e "een* *o / *$n e#e '*, !nu:e#* *o u#$ '*!*on !n "e*"#*on ! * '! 'oe, *!"; "!*e, 'o"* !n e/o"*uo*!, *onn!e !n $!"!e ue, !n o*$e" u*e o" 'o* *$n *$e "!'eo"< o *$en!*on! eeo'en* "o"!' o *$e Goe"n'en*.

C$!"*!e n**u*on, #$u"#$e !n !"on!e o" #onen* !u"*en!n* *$e"e*o,'oue, non-"o* #e'e*e"e, !n ! !n, un, !n '"oe'en*, !#*u!, "e#*,!n e/#ue ue o" "eou, #$!"*!e, o" eu#!*on! u"oe $! e e/e'* "o'*!/!*on.(4) No ! "!n*n !n *!/ e/e'*on $! e !e *$ou* *$e #on#u""en#e o ! '!:o"* o

! *$e e'e" o *$e Con"e.

CASE345 #ug Cete$ %s. &ue'o

Cit(

(G.R. No. 144101, June 29,

2004)325 Ab$a +alle( College %s.

A,uio

(G.R. No. L-39086, June 15,

1988)

(1 #ug Cete$ %s. &ue'o Cit((G.R. No. 144101, June 29, 2004)

FU## CASE6

(G!R! No! 144104 "#$% 29& 2004LUNG CENTER 'F TE PILIPPINES& )%tto$%+& ,-! .UE/'N CIT $ C'NSTANTIN' P! R'SAS& $

- )t - Ct A--%--o+ o .#%o$ Ct& +%-)o$%$t-!

D E C I S I ' NC=LLEJO, SR., J.>

T- - )%tto$ o+ +%,% o$ %+to++ #$%+ R#% 45 o t% R#%- o Co#+t& - :%$%&o t% D%-o$1 t% "# 17& 2000 o t% Co#+t o A))%- $ CA;G!R! SP No! 57014 tt t% ot o$% ?t% )%tto$%+ $ t- o-)t ?#$> o$-t+#t% t%+%o$ +% -#?@%t to --%--:%$t o+)#+)o-%- o +% )+o)%+t t!

T% A$t%%%$t- T% )%tto$%+ L#$> C%$t%+ o t% P))$%- - $o$;-toB $ $o$;)+ot %$tt

%-t?-% o$ "$#+ 16& 1981 ? ,+t#% o P+%-%$t D%+%% No! 1823!2 It - t% +%>-t%+%o$%+ o )+% o $& )+t#+ %-+?% - Lot No! RP;3;=;3A;1;=;1& S';04;000495&ot% t .#%o$ A,%$#% o+$%+ E)t Ro& C%$t+ D-t+t& .#%o$ Ct! T% ot - $


3/51

3+% o 121&463 -#+% :%t%+- $ - o,%+% ? T+$-%+ C%+tt% o Tt% (TCT No! 261320 ot% R%>-t+ o D%%- o .#%o$ Ct! E+%t% $ t% :% o t% o+%- ot - o-)tB$o$ - t% L#$> C%$t%+ o t% P))$%-! A ?> -)% t t% >+o#$ oo+ - ?%$> %-% to)+,t% )+t%-& o+ $t%%$ $ -: -to+% -)%-& $ to :% o+ )+o%--o$ )+tto$%+-o #-% t% -:% - t%+ )+,t% $- o+ t%+ )t%$t- o: t% +>% o+ t%+)+o%--o$ -%+,%-! A:o-t o$%; o t% %$t+% +% o$ t% %t -% o t% ?#$> o$>.#%o$ A,%$#% - ,$t $ %& % ?> )o+to$ o$ t% +>t -%& t t% o+$%+ o .#%o$A,%$#% $ E)t Ro& - ?%$> %-% o+ o::%+ )#+)o-%- to )+,t% %$t%+)+-%B$o$ - t% E)t '+- $ G+%$ C%$t%+!

T% )%tto$%+ %)t- )$> $ $o$;)$> )t%$t-! It -o +%$%+- :% -%+,%- too#t;)t%$t-& ?ot )$> $ $o$;)$>! A-% +o: t- $o:% +o: )$> )t%$t-& t%)%tto$%+ +%%,%- $$# -#?-%- +o: t% >o,%+$:%$t!

'$ "#$% 7& 1993& ?ot t% $ $ t% o-)t ?#$> o t% )%tto$%+ %+% --%--%o+ +% )+o)%+t t%- $ t% :o#$t o P4&554&860 ? t% Ct A--%--o+ o .#%o$ Ct!3Ao+$>& T D%+to$ No-! C;021;01226 (16;2518 $ C;021;01231 (15;2518;A %+%--#% o+ t% $ $ t% o-)t ?#$>& +%-)%t,%!4 '$ A#>#-t 25& 1993& t% )%tto$%+% C: o+ E%:)to$5 +o: +% )+o)%+t t%- t t% Ct A--%--o+& )+%t% o$ t-: tt t - +t?% $-tt#to$! T% )%tto$%+- +%#%-t - %$%& $ )%tto$ -&t%+%t%+& % ?%o+% t% Lo =o+ o A--%--:%$t A))%- o .#%o$ Ct (.C;L=AA& o+?+%,t o+ t% +%,%+- o t% +%-o#to$ o t% Ct A--%--o+! T% )%tto$%+ %>% tt #$%+S%to$ 28& )+>+) 3 o t% 1987 Co$-tt#to$& t% )+o)%+t - %%:)t +o: +% )+o)%+tt%-! It ,%++% tt :$:#: o 60H o t- o-)t ?%- +% %#-,% #-% o+ +t)t%$t- $ tt t% :@o+ t+#-t o t- o-)t o)%+to$ - to -%+,% +t )t%$t-! T%)%tto$%+ o$t%$- tt t - +t?% $-tt#to$ $& - -#& - %%:)t +o: +% )+o)%+tt%-! T% .C;L=AA +%$%+% @#>:%$t -:--$> t% )%tto$ $ o$> t% )%tto$%+ ?%o+ +% )+o)%+t t%-!6

T% .C;L=AA- %-o$ -& B%-%& t +%% +o: t% Co#+t o A))%-& +%$%+%

@#>:%$t t% %-o$ o t% C=AA!8U$#$t%& t% )%tto$%+ % t- )%tto$ $ t- Co#+t o$t%$$> ttJ

A! TE C'URT A .U' ERRED IN DECLARING PETITI'NER AS N'T ENTITLED T' REALT TAKEKEMPTI'NS 'N TE GR'UND TAT ITS LAND& =UILDING AND IMPR'VEMENTS& SU="ECT 'FASSESSMENT& ARE N'T ACTUALL& DIRECTL AND EKCLUSIVEL DEV'TED F'R CARITA=LEPURP'SES!=! ILE PETITI'NER IS N'T DECLARED AS REAL PR'PERT TAK EKEMPT UNDER ITS CARTERPD 1823& SAID EKEMPTI'N MA NEVERTELESS =E EKTENDED UP'N PR'PER APPLICATI'N!

T% )%tto$%+ ,%+- tt t - +t?% $-tt#to$ t$ t% o$t%t o S%to$ 28(3&A+t% VI o t% 1987 Co$-tt#to$! It --%+t- tt t- +t%+ - +t?% $-tt#to$ - $ott%+% ? t% t tt t :t- )$> )t%$t- $ +%$%+- :% -%+,%- to t%:& %-%-)o+to$- o t% $ to )+,t% )+t%-& $ +%$t- o#t )o+to$- o t% o-)t to )+,t% :%

)+tto$%+- +o: t %+,%- $o:% to ?% #-% o+ o)%+to$ %)%$-%-! T% )%tto$%+)o$t- o#t tt o+ t% %+- 1995 to 1999& 100H o t- o#t;)t%$t- %+% +t )t%$t- $ ot% o-)t- 282;?% )t& 60H t%+%o& o+ 170 ?%-& - ott% to +t )t%$t-! It--%+t- tt t% t tt t +%%,%- -#?-%- +o: t% >o,%+$:%$t tt%-t- to t- +t%+ - +t?% $-tt#to$! It o$t%$- tt t% %#-,t +%#+% $ t% Co$-tt#to$ o%- $ot$%%--+ :%$ -o%! %$%& %,%$ )o+to$ o t- +% %-tt% - %-% o#t to )+,t%$,#- +o: o: t %+,%- $o:%& t o%- $ot o-% t- +t%+ - +t?% $-tt#to$$ t- %%:)to$ +o: t% ):%$t o +% %-tt% t%- o$ t- +% )+o)%+t! T% )%tto$%+ t%o#+ +#$> $ %++%+ ,! .C;=AA9 to ?o-t%+ t- )o-%! T% )%tto$%+ #+t%+ o$t%$- tt %,%$ P!D! No! 1823 o%- $ot %%:)t t +o: t% ):%$t o +% %-tt% t%-& t - $ot )+%#% +o:-%%B$> t %%:)to$ #$%+ t% 1987 Co$-tt#to$!


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4I$ t%+ o::%$t o$ t% )%tto$& t% +%-)o$%$t- ,%+ tt t% )%tto$%+ - $ot

+t?% %$tt! T% )%tto$%+- +% )+o)%+t - $ot %%:)t +o: t% ):%$t o +% %-tt%t%- #$%+ P!D! No! 1823 $ %,%$ #$%+ t% 1987 Co$-tt#to$ ?%#-% t % to )+o,% tt t- +t?% $-tt#to$ $ tt t% - )+o)%+t - t#& +%t $ %#-,% #-% o++t?% )#+)o-%-! T% +%-)o$%$t- $ot% tt $ $%-))%+ +%)o+t& t ))%+- tt >+t+>%- %+% % t t% S$>$?$ >$-t t% +%to+ o t% )%tto$%+& t-:$-t+t,% o >+o-- )+%@# to t% >o,%+$:%$t& t% )%tto$%++%$%% t% -:% o$ M+ 13& 1995 o+ :o$t +%$t o o$ P24&000! T% --%+t tt t%)%tto$%+ #-%- t% -#?-%- >+$t% ? t% >o,%+$:%$t o+ +t )t%$t- $ #-%- t% +%-t ot- $o:% +o: t% )+o)%+t o+ t% ?%$%t o )$> )t%$t-& :o$> ot%+ )#+)o-%-! T% ,%+tt t% )%tto$%+ % to #% -#?-t$t %,%$% tt 100H o t- o#t;)t%$t- $ 170?%- $ t% o-)t +% +%-%+,% o+ $>%$t )t%$t-! T% +%-)o$%$t- #+t%+ --%+t& t#-J

13! Tt t% :-%>to$- o t% P%tto$%+ LCP o $ot -)%B % o t- +%o+ o-%+,%! Tt ?%o+% )t%$t - :tt% o+ t+%t:%$t $ t% C%$t%+& +-t :)+%--o$ - tt t -);)t%$t $ +%#+% to ) %+t$ :o#$t - %)o-t! Tt %,%$ )t%$t - ,$>?%o t% )o,%+t $%& % - +>% t > o-)t ?-! A$& to#t t%-% ?- ?%$> +-t-%tt%& t% )oo+ )t%$t $$ot ?% o% to %,% t% o-)t o+ ?% -+>% to#t +-t)$> t% o-)t ?- o+ --#% )+o:--o+ $ot% >#+$t%% $ $o+-% ? $ $#%$t>%$ o+ )%+-o$ B$o$ o$ to t% C%$t%+ tt %,%$ t% +%:$- o %%-% )oo+ )t%$t--#%+% t% -:% t%! Mo+%o,%+& ?%o+% )t%$t - :tt% o+ t+%t:%$t - +%% o+ +t)t%$t& o$% :#-t #$%+>o -%+%- o $t%+,%- $ :#-t -#?:t t% +%#+%:%$t- $%%%? t% C%$t%+& #-# o:)$% ? %$o+-%:%$t ? $ $#%$t >%$ o+ )%+-o$ B$o$o$ to t% C%$t%+! T%-% t- %+% %+ $ :tt% ? t% P%tto$%+ LCP #+$> t%%+$>- ?%o+% t% o$o+?% .C;=AA $ o$o+?% C=AA! T%-% +% t% +%-o$- o $>%$t)t%$t-& $-t% o -%%B$> t+%t:%$t t t% C%$t%+& t% )+%%+ to ?% t+%t% t t% .#%o$I$-tt#t%! C$ -# )+t% ? t% C%$t%+ ?% % +t?%O10

T% I--#%- T% --#%- o+ +%-o#to$ +% t% oo$>J ( %t%+ t% )%tto$%+ - +t?%

$-tt#to$ t$ t% o$t%t o P+%-%$t D%+%% No! 1823 $ t% 1973 $ 1987Co$-tt#to$- $ S%to$ 234(? o R%)#? At No! 7160 $ (? %t%+ t% +% )+o)%+t%- ot% )%tto$%+ +% %%:)t +o: +% )+o)%+t t%-!

T% Co#+t- R#$> T% )%tto$ - )+t >+$t%!'$ t% +-t --#%& % o tt t% )%tto$%+ - +t?% $-tt#to$ t$ t% o$t%t

o t% 1973 $ 1987 Co$-tt#to$-! To %t%+:$% %t%+ $ %$t%+)+-% - +t?%$-tt#to$%$tt o+ $ot& t% %%:%$t- -o# ?% o$-%+% $#% t% -tt#t% +%t$>t% %$t%+)+-%& t- o+)o+t% )#+)o-%-& t- o$-tt#to$ $ ?;-& t% :%to- o

:$-t+to$& t% $t#+% o t% t# o+B )%+o+:%& t% +t%+ o t% -%+,%- +%$%+%&t% $%$t%$%-- o t% ?%$%+%-& $ t% #-% $ o#)to$ o t% )+o)%+t%-!11I$ t% %> -%$-%& +t : ?% # %$% - >t& to ?% ))% o$--t%$t t

%-t$> -& o+ t% ?%$%t o $ $%$t% $#:?%+ o )%+-o$-& %t%+ ? ?+$>$> t%+ :$-$ %+t- #$%+ t% $#%$% o %#to$ o+ +%>o$& ? ---t$> t%: to %-t?-t%:-%,%- $ % o+ ot%+-% %--%$$> t% ?#+%$ o >o,%+$:%$t!12 It : ?% ))% to:o-t $t$> tt t%$ to )+o:ot% t% %;o$> $ %;?%$> o -o :$! It %:?+%-t% :)+o,%:%$t $ )+o:oto$ o t% ))$%-- o :$!13 T% o+ +t?% - $ot+%-t+t% to +%% o t% )oo+ o+ -B!14 T% t%-t o +t $ +t?% o+>$to$ +% $ t% -:%! T% t%-t %t%+ $ %$t%+)+-% - +t?% o+ $ot - %t%+ t %-t- to ++ o#t )#+)o-% +%o+>$% $ - +t?% o+ %t%+ t - :$t$% o+ >$& )+ot& o+ )+,t%,$t>%!


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5U$%+ P!D! No! 1823& t% )%tto$%+ - $o$;)+ot $ $o$;-toB o+)o+to$ & -#?@%t

to t% )+o,-o$- o t% %+%%& - to ?% :$-t%+% ? t% '$%o+ t% %+% $ ?%$%t o t% F)$o )%o)% )+$) to %) o:?t t% > $%$% o#$> $ )#:o$+ -%-%- $ t% P))$%-! T% +-o$ %t+% o+ t% +%to$ o t%)%tto$%+ - -tt% $ t% %+%%& ,J

%+%-& o+ %%-& +%-)+to+ -%-%- ,% ?%%$ )+o+t o$%+$& ,$> ?%%$ t%%$> #-% o $%-- $ %t $ t% P))$%-& o:)+-$> :o+% t$ 45H o t% tot$$# %t- +o: #-%-& t#-& %t$> t+%:%$o#- to o$ #:$ +%-o#+%-& :%$t- +% B% to $+%-% $ %>%$%+t% $to -%+o#- #$> -%-%- o$ o#$t o #$?t%)o#to$& $#-t+to$ $ #$%B% >+%tt% -:oB$> $ t% o#$t+,,)!$%t

%+%-& t% :o+% o::o$ #$> -%-%- +%& to >+%t %t%$t& )+%,%$t?%& $ #+?%t %+ $ %#t% :% +%& ::#$to$ $ t+o#> )+o:)t $ $t%$-,%)+%,%$to$ $ %t %#to$ )+o>+:-

%+%-& t%+% - $ #+>%$t $%% to o$-ot% $ +%$o+% %-t$> )+o>+:-&-t+t%>%- $ %o+t- t )+%,%$t$>& t+%t$> $ +%?tt$> )%o)% %t% ? #$> -%-%-&$ to #$%+tB% +%-%+ $ t+$$> o$ t% #+% $ )+%,%$to$ o #$> -%-%-& t+o#> L#$> C%$t%+ o#-% $ $#+t#+% t% ?o,% $ +%t% t,t%- $ )+o,% t%+t+;%,% +% o+ :o+% C%$t%+ o+ t% %+%$ ?%$%t o t% F)$o )%o)%!15

T% )#+)o-%- o+ t% )%tto$%+ - +%t% +% -)%% o#t $ t- A+t%- oI$o+)o+to$& t#-J

SEC'NDJ Tt t% )#+)o-%- o+ -# o+)o+to$ - o+:% +% - oo-J1! To o$-t+#t& %-t?-& %#)& :$t$& :$-t%+ $ o$#t $ $t%>+t% :%$-tt#to$ - -)%% $ t% t+%t:%$t& +%& +%?tto$ $o+ +%% o #$> $% -%-%- $ $% t t% o$%+$ o t% >o,%+$:%$t to ---t $ )+o,% :t%+ $$$ -#))o+t $ t% %-t?-:%$t $ :$t%$$% o #$> %$t%+ )+:+ to ?%$%t t%)%o)% o t% P))$%- $ $ )#+-#$% o t% )o o t% Stt% to -%#+% t% %;?%$> ot% )%o)% ? )+o,$> t%: -)%% %t $ :% -%+,%- $ ? :$:$> t%$%$% o #$> -%-%- $ t% o#$t+ $ %-%%+%!2! To )+o:ot% t% $o?% #$%+tB$> o -%$t +%-%+ +%t% to t% )+%,%$to$ o #$> o+)#:o$+ :%$t- $ t% +% o #$> )t%$t-& $#$> t% o$> o -%+%- o +%%,$to$>+%--%-& o$,%$to$-& -%:$+- $ o$%+%$%-3! To -t:#t% $& %$%,%+ )o--?%& #$%++t% -%$t +%-%+%- o$ t% ?oo>%:o>+)& -o& %o$o:& %#>%$ $ )-oo> -)%t- o #$> o+ )#:o$+ -%-%-$ t%+ o$t+o $ to o%t $ )#?- t% $$>- o -# +%-%+ o+ )#? o$-#:)to$4! To tt% t% --%:$to$ o %- $ )#? %)t$% o $o+:to$ o$ #$>o$-o#-$%-- o+ +%$%--& $ t% %,%o):%$t o t;$$>& $o+:to$ $ +%)o+t$>t%- o+ $ $ o t% >%$%+ )#+)o-%- o+ o?@%t- o+%-& %-)% $ #:$ #$>+%#+%:%$t-& >%$%+ %t $ )- t$%--& $ ot%+ +%%,$t o+ +%t% %-

5! To %$o#+>% t% t+$$> o )-$-& $#+-%-& %t o)t%$t-6! To ---t #$,%+-t%- $ +%-%+ $-tt#to$- $ t%+ -t#%- ?o#t #$> -%-%-& to%$o#+>% ,$% t+$$> $ :tt%+- o t% #$> $ +%t% %- $ to -#))o+t %#to$)+o>+:- o ,#% to >%$%+ %t7! To %$o#+>% t% o+:to$ o ot%+ o+>$to$- o$ t% $to$& )+o,$ $o+ t $o %,%- $ to oo+$t% t%+ ,+o#- %o+t- $ t,t%- o+ t% )#+)o-% o %,$> :o+% %%t,% )+o>+::t ))+o o$ t% o::o$ )+o?%:- +%t,% to t% o?@%t,%-%$#:%+t% %+%$8! To -%%B $ o?t$ ---t$% $ $ o+: +o: ?ot $t%+$to$ $ o o#$to$- $o+>$to$- $ to :$-t%+ >+$t- $ #$- tt : ?% >,%$ to t% o+>$to$


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69! To %t%$& %$%,%+ )o--?% $ %)%%$t& :% -%+,%- to t% )#? $& $ >%$%+& to)+o:ot% $ )+ot%t t% %t o t% :--%- o o#+ )%o)%& - o$> ?%%$ +%o>$% -$ %o$o: --%t $ -o ?%--$>10! To %) )+%,%$t& +%%,% $ %,t% t% #$> o+ )#:o$+ Qto$- $ :%- o t%)%o)% $ $ $ B- o %& $#$> to-% o +% )oo+ $ $%%& to#t +%>+ too+ -+:$to$& ?%#-% o +%& +%%& oo+ o+ )ot ?%% o t% )%+-o$- %)% $ to%$?% t%: to o?t$ t+%t:%$t %$ -# -o+%+- o#+11! To )+t)t%& - +#:-t$%- : ++$t& $ $ t,t %->$% $ ++% o$ to)+o:ot% t% >%$%+ %t o t% o::#$t12! To #+% $o+ ?o++o #$- $ to o$ #$- o+ %#):%$t& %#to$ :t%+- $-#))%- ? )#+-%& o$to$& o+ ot%+-% $ to -)o-% o $ -t+?#t% t% -:% $ -#:$$%+& $& o$ -# ?-- - t% C%$t%+ -& +o: t:% to t:%& %%: )+o)%+ $ ?%-t& #$%+t% )+t#+ +#:-t$%-& to -%+,% t- >%$%+ $ $o$;)+ot )#+)o-%- $o?@%t,%-,,)!$%t13! To ?#& )#+-%& #+%& o$& %-%& o& -%& %$>%& t+$-%+ $ -)o-% o)+o)%+t%-& %t%+ +% o+ )%+-o$& o+ )#+)o-%- %+%$ :%$to$% $14! To o %,%+t$> $%%--+& )+o)%+& ,-?% o+ o$,%$%$t o+ t% o:)-:%$t o $o t% )o%+- %+%$ -%t o+t $ to o %,%+ ot%+ t $ t$> $%$t t%+%to o+o$$%t% t%+%t!16

%$%& t% :% -%+,%- o t% )%tto$%+ +% to ?% +%$%+% to t% )#? $ >%$%+ $$ $ B- o % $#$> to-% o +% )oo+ $ t% $%% to#t -+:$to$! At%+& $ )%+-o$& t% + - % - t% )oo+& : -B o+ ?% $@#+% o+ o#$% $ ?%o:% -#?@%t o +t!17

A- >%$%+ )+$)%& +t?% $-tt#to$ o%- $ot o-% t- +t%+ - -# $ t-%%:)to$ +o: t%- -:) ?%#-% t %+,%- $o:% +o: )$> )t%$t-& %t%+ o#t;)t%$t& o+ o$$% $ t% o-)t& o+ +%%,%- -#?-%- +o: t% >o,%+$:%$t& -o o$> - t%:o$% +%%,% - %,ot% o+ #-% to>%t%+ to t% +t?% o?@%t t - $t%$% to%,% $ $o :o$% $#+%- to t% )+,t% ?%$%t o t% )%+-o$- :$>$> o+ o)%+t$> t%$-tt#to$!18 I$ Co$>+%>to$ S#$ Soo& %t! ,! =o+ o R%,%&19 t% Stt% S#)+%:%Co#+t o I$o- %& t#-J

A$ $-tt#to$ o%- $ot o-% t- +t?% +t%+& $ o$-%#%$t %%:)to$ +o:tto$& ? +%-o$ o t% t tt to-% +%)%$t- o t- ?%$%t- o +% ?% to ) +%+%#+% to o -o& %+% $o )+ot - :% ? t% $-tt#to$ $ t% :o#$t- -o +%%,% +%))% $ #+t%+$> t- +t?% )#+)o-%-& $ to-% ?%$%t- +% +%#-% to $o$% o$ o#$to $?t to ) t%+%o+! T% #$:%$t >+o#$ #)o$ %%:)to$- $ ,o+ o+t?% $-tt#to$- +% ?-% - t% ?%$%t o$%++% #)o$ t% )#? ? t%:& $ o$-%#%$t +%%& to -o:% %t%$t& o t% ?#+%$ #)o$ t% -tt% to +% o+ $ ,$% t%$t%+%-t- o t- t%$-!20

A- )t -tt% ? t% Stt% S#)+%:% Co#+t o So#t DBot $ L#t%+$ o-)tA--oto$ o So#t DBot ,! =B%+J21

T% t tt )$> )t%$t- +% tB%$& t% )+ot- %+,% +o: tt%$$% #)o$t%-% )t%$t- ?%$> %#-,% %,ot% to t% :$t%$$% o t% +t& -%%:- +t%+ to

%$$% t% #-%#$%-- o t% $-tt#to$ to t% )oo+ o+ t - :tt%+ o o::o$ o?-%+,to$:o$>-t to-% o ,% >o$% ?o#t t :o$>-t t% -#%+$> --%-& tt t% %-%+,$>)oo+ $ t )% $ $$-tt#to$ $ )$> )t%$t- +% -o +%%,%! T% t o +%%,$> :o$% +o: -o:% ot% )t%$t- o%- $ot& % t$B& t :)+ t% +t%+ o t% +t& -o o$> - t% :o$%t#- +%%,% - %,ot% to>%t%+ to t% +t?% o?@%t t% $-tt#to$ - $t%$% to#+t%+!22

T% :o$% +%%,% ? t% )%tto$%+ ?%o:%- )+t o t% t+#-t #$ $ :#-t ?%%,ot% to )#? t+#-t )#+)o-%- $ $$ot ?% ,%+t% to )+,t% )+ot o+ ?%$%t!23

U$%+ P!D! No! 1823& t% )%tto$%+ - %$tt% to +%%,% o$to$-! T% )%tto$%+ o%- $oto-% t- +t%+ - +t?% $-tt#to$ -:) ?%#-% t% >t o+ o$to$ - $ t% o+: o


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7-#?-%- >+$t% ? t% >o,%+$:%$t! A- % ? t% Stt% S#)+%:% Co#+t o Ut $ o+>-o$ ,Co#$t =o+ o E#to$ o St LB% Co#$tJ24

S%o$& t% >o,%+$:%$t -#?- ):%$t- +% )+o,% to t% )+o@%t! T#-& to-%):%$t- +% B% >t o+ o$to$ o $ ot%+ B$ %%)t t% o:% +o: t% >o,%+$:%$t! I$?ot I$t%+:o#$t$ %t C+% $ t% )+%-%$t -%& t% +# - t% )+%-%$% o+ ?-%$% o:t%+ +%)+ot! It - %$t+% ++%%,$t to t- $-- tt t% >o,%+$:%$t& +t%+ t$ )+,t% ?%$%to+& o-% to :B% #) t% %t +%-#t$> +o: t% %$>% ?%t%%$ St! M+B-

To%+ $ t% t%$$t- ? :B$> o$t+?#to$ to t% $o+& @#-t - t o# ,% ?%%$++%%,$t $ I$t%+:o#$t$ %t C+% t% )t%$t- $o:% -#))%:%$t- o:% +o:)+,t% $,#- +t%+ t$ t% >o,%+$:%$t!

T%+%o+%& t% t tt -#?-to$ o )+t o t% o-t o #+$-$> -# o#-$> - ?t% >o,%+$:%$t +t%+ t$ )+,t% +t?% o$t+?#to$- o%- $ot tt% t% %$ o +t?% %%:)to$ t% t- ot%+-% -#))o+t -# $ %%:)to$& - t% o %+%!25

I$ t- -%& t% )%tto$%+ #% -#?-t$t %,%$% tt t -)%$t t- $o:%& $#$>t% -#?-%- +o: t% >o,%+$:%$t o+ 1991 $ 1992 o+ t- )t%$t- $ o+ t% o)%+to$ o t%o-)t! It %,%$ $#++% $%t o-- $ 1991 $ 1992 +o: t- o)%+to$-!

E,%$ - % $ tt t% )%tto$%+ - +t?% $-tt#to$& % o& $%$t t% -%o$--#%& tt to-% )o+to$- o t- +% )+o)%+t tt +% %-% to )+,t% %$tt%- +% $ot %%:)t+o: +% )+o)%+t t%- - t%-% +% $ot t#& +%t $ %#-,% #-% o+ +t?%)#+)o-%-!

T% -%tt% +#% $ t- @#+-to$ - tt - >+$t$> %%:)to$ +o: t +% o$-t+#%-t+t--: @#+- >$-t t% t)%+ $ ?%+ $ ,o+ o t% t$> )o%+! Tto$ - t%+#% $ %%:)to$ - t% %%)to$! T% %%t o $ %%:)to$ - %#,%$t to $))+o)+to$! %$%& : o+ %%:)to$ +o: t ):%$t- :#-t ?% %+ -o$ $?-% o$ $>#>% $ t% too )$ to ?% :-tB%$!26 A- % $ S,to$ A+: ,! o%$J27

A$ $t%$to$ o$ t% )+t o t% %>-t#+% to >+$t $ %%:)to$ +o: t% t$> )o%+ ot% -tt% $%,%+ ?% :)% +o: $>#>% :t o $ ot%+ +%-o$?%o$-t+#to$! S# $ $t%$to$ :#-t ?% %)+%--% $ %+ $ #$:-tB?% t%+:-& o+ :#-t))%+ ? $%%--+ :)to$ +o: t% $>#>% #-%& o+ t - % -%tt% )+$)% tt&%$ -)% )+,%>% o+ %%:)to$ - :% #$%+ -tt#t%& +t%+ o+ t o $o+)o+to$&t - to ?% o$-t+#% -t+t >$-t t% )+o)%+t o$%+ $ $ ,o+ o t% )#?! T- )+$)%))%- t )%#+ o+% to : o %%:)to$ +o: tto$ ! 28

S%to$ 2 o P+%-%$t D%+%% No! 1823& +%% #)o$ ? t% )%tto$%+& -)%)+o,%- tt t% )%tto$%+ - %$@o t% t %%:)to$- $ )+,%>%-J

SEC! 2! TAK EKEMPTI'NS AND PRIVILEGES! =%$> $o$;)+ot& $o$;-toB o+)o+to$o+>$% )+:+ to %) o:?t t% > $%$% o #$> $ )#:o$+ -%-%- $ t%P))$%-& o$to$-& o$t+?#to$-& %$o:%$t- $ %#):%$t $ -#))%- to ?% :)o+t%? #to+% %$tt%- o+ )%+-o$- $ ? t% =o+ o T+#-t%%- o t% L#$> C%$t%+ o t%P))$%-& I$!& o+ t% t# #-% $ ?%$%t o t% L#$> C%$t%+& - ?% %%:)t +o: $o:%$ >t t%-& t% -:% #+t%+ %#t?% $ # o+ t% )#+)o-% o %t%+:$$> t% ::#:%#t?% :o#$t #$%+ S%to$ 30& )+>+) (& o t% Nto$ I$t%+$ R%,%$#% Co%& -:%$%!

T% L#$> C%$t%+ o t% P))$%- - ?% %%:)t +o: t% ):%$t o t%-& +>%-

$ %%- :)o-% ? t% Go,%+$:%$t o+ $ )ot -#?,-o$ o+ $-t+#:%$tt t%+%o t+%-)%t to %#):%$t )#+-%- :% ?& o+ o+ t% L#$> C%$t%+!29It - )$ - tt #$%+ t% %+%%& t% )%tto$%+ o%- $ot %$@o $ )+o)%+t t

%%:)to$ )+,%>%- o+ t- +% )+o)%+t%- - % - t% ?#$> o$-t+#t% t%+%o$! I t%$t%$to$- %+% ot%+-%& t% -:% -o# ,% ?%%$ :o$> t% %$#:%+to$ o t %%:)t)+,%>%- #$%+ S%to$ 2J

It - -%tt% +#% o -tt#to+ o$-t+#to$ tt t% %)+%-- :%$to$ o o$% )%+-o$& t$>& o+o$-%#%$% :)%- t% %#-o$ o ot%+-! T% +#% - %)+%--% $ t% :+ ::&%)+%--o #$#- %-t %#-o t%+#-!


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8 T% +#% o %)+%--o #$#- %-t %#-o t%+#- - o+:#t% $ $#:?%+ o -! '$% ,+to$o t% +#% - t% )+$)% tt t - %)+%--% )#t- $ %$ to tt - :)%E)+%--#: t %--+% tt#:! T#-& %+% -tt#t%& ? t- t%+:-& - %)+%-- :t% to%+t$ :tt%+-& t : $ot& ? $t%+)+%tto$ o+ o$-t+#to$& ?% %t%$% to ot%+ :tt%+-!

T% +#% o %)+%--o #$#- %-t %#-o t%+#- $ t- ,+to$- +% $o$- o +%-t+t,%$t%+)+%tto$! T% +% ?-% o$ t% +#%- o o> $ t% $t#+ o+B$>- o t% #:$ :$!

T% +% )+%t% #)o$ o$%- o$ ,o#$t+ t $ $ot #)o$ tt o ot%+-! T% )+o%%+o: t% )+%:-% tt t% %>-t#+% o# $ot ,% :% -)%% %$#:%+to$ $ -tt#t% t% $t%$to$ ?%%$ $ot to +%-t+t t- :%$$> $ o$$% t- t%+:- to to-% %)+%--:%$to$%!30

T% %%:)to$ :#-t $ot ?% -o %$+>% ? o$-t+#to$ -$% t% +%-o$?% )+%-#:)to$- tt t% Stt% - >+$t% $ %)+%-- t%+:- t $t%$% to >+$t t & $ tt #$%-- t%)+,%>% - :t% to t% ,%+ t%+:- o t% -tt#t% t% ,o+ o# ?% $t%$% ?%o$ t -:%$t!31

S%to$ 28(3& A+t% VI o t% 1987 P))$% Co$-tt#to$ )+o,%-& t#-J(3 C+t?% $-tt#to$-& #+%- $ )+-o$>%- o+ o$,%$t- ))#+t%$$t t%+%to&

:o-#%-& $o$;)+ot %:%t%+%-& $ $-& ?#$>-& $ :)+o,%:%$t-& t#& +%t$ %#-,% #-% o+ +%>o#-& +t?% o+ %#to$ )#+)o-%- - ?% %%:)t +o:tto$!32

T% t %%:)to$ #$%+ t- o$-tt#to$ )+o,-o$ o,%+- )+o)%+t t%- o$!33 A-C% "#-t% +o G! D,%& "+!& t%$ :%:?%+ o t% 1986 Co$-tt#to$ Co::--o$&%)$%J ! ! ! t - %%:)t% - $ot t% $-tt#to$ t-% ! ! ! to-% %%:)t% +o: +% %-tt%t%- +% $-& ?#$>- $ :)+o,%:%$t- t#& +%t $ %#-,% #-% o+ +%>o#-&+t?% o+ %#to$ )#+)o-%-!34

Co$-%#%$t& t% o$-tt#to$ )+o,-o$ - :)%:%$t% ? S%to$ 234(? o R%)#?At No! 7160 (ot%+-% B$o$ - t% Lo Go,%+$:%$t Co% o 1991 - oo-J

SECTI'N 234! E%:)to$- +o: R% P+o)%+t T! T% oo$> +% %%:)t% +o: ):%$t ot% +% )+o)%+t tJ

(? C+t?% $-tt#to$-& #+%-& )+-o$>%- o+ o$,%$t- ))#+t%$$t t%+%to:o-#%-& $o$;)+ot o+ +%>o#- %:%t%+%- $ $-& ?#$>-& $ :)+o,%:%$t- t#&+%t& $ %#-,% #-% o+ +%>o#-& +t?% o+ %#to$ )#+)o-%-!35

% $ot% tt #$%+ t% 1935 Co$-tt#to$& !!! $-& ?#$>-& $ :)+o,%:%$t- #-%%#-,% o+ +t?% )#+)o-%- - ?% %%:)t +o: tto$!36 o%,%+& #$%+ t%1973 $ t% )+%-%$t Co$-tt#to$-& o+ $-& ?#$>-& $ :)+o,%:%$t- o t% +t?%$-tt#to$ to ?% o$-%+% %%:)t& t% -:% -o# $ot o$ ?% %#-,% #-% o++t?% )#+)o-%- t - +%#+% tt -# )+o)%+t ?% #-% t# $ +%t o+ -#)#+)o-%-!37

I$ >t o t% o+%>o$> -#?-t$t $>%- $ t% Co$-tt#to$& t% )%tto$%+ $$ot +%o$ o#+ +#$> $ %++%+ ,! .#%o$ Ct =o+ o A--%--:%$t A))%- - )+o:#>t% o$S%)t%:?%+ 30& 1961 ?%o+% t% 1973 $ 1987 Co$-tt#to$- tooB %%t!38 A- t- Co#+t % $P+o,$% o A?+ ,! %+$$oJ39

U$%+ t% 1935 Co$-tt#to$J C%:%t%+%-& #+%-& $ )+-o$>%- o+ o$,%$t-

))#+t%$$t t%+%to& $ $-& ?#$>-& $ :)+o,%:%$t- #-% %#-,% o+ +%>o#-&+t?%& o+ %#to$ )#+)o-%- - ?% %%:)t +o: tto$! T% )+%-%$t Co$-tt#to$% +t?% $-tt#to$-& :o-#%-& $ $o$;)+ot %:%t%+%- $ +%#+% tt o+ t%%%:)to$ o $-& ?#$>-& $ :)+o,%:%$t-& t% -o# $ot o$ ?% %#-,% ?#t-o t# $ +%t #-% o+ +%>o#- o+ +t?% )#+)o-%-! T% Co$-tt#to$ - o+%%+%$t! T% $>% -o# $ot ?% >$o+%! It :#-t ?% # tB%$ $to o$-%+to$! R%$%o$ )-t %-o$- o# ,% -#-& $:)+o,%:%$t- o+ +%>o#- o+ +t?% )#+)o-%- to ?% %%:)t +o: tto$!

U$%+ t% 1973 $ 1987 Co$-tt#to$- $ R%)! At No! 7160 $ o+%+ to ?% %$tt% to t%%%:)to$& t% )%tto$%+ - ?#+%$% to )+o,%& ? %+ $ #$%#,o )+oo& tt ( t -


9/51

9+t?% $-tt#to$ $ (? t- +% )+o)%+t%- +% ACTUALL& DIRECTL $ EKCLUSIVEL #-%o+ +t?% )#+)o-%-! E#-,% - %$% - )o--%--% $ %$@o% to t% %#-o$ oot%+- %?++% +o: )+t)to$ o+ %$@o:%$t $ %#-,% - %$%& $ :$$%+ to%#% - %$@o$> )+,%>% %#-,%!40 I +% )+o)%+t - #-% o+ o$% o+ :o+%o::%+ )#+)o-%-& t - $ot %#-,% #-% o+ t% %%:)t% )#+)o-%- ?#t - -#?@%t totto$!41 T% o+- o:$$t #-% o+ )+$) #-% $$ot ?% -#?-tt#t% o+ t% o+-#-% %#-,% to#t o$> ,o%$% to t% Co$-tt#to$- $ t% !42 So% --$o$:o#- t %#-,%!43

t - :%$t ? t#& +%t $ %#-,% #-% o t% )+o)%+t o+ +t?% )#+)o-%-- t% +%t $ ::%t% $ t# ))to$ o t% )+o)%+t t-% to t% )#+)o-%- o+ t% +t?% $-tt#to$ - o+>$%! It - $ot t% #-% o t% $o:% +o: t% +% )+o)%+t tt- %t%+:$t,% o %t%+ t% )+o)%+t - #-% o+ t;%%:)t )#+)o-%-!44

T% )%tto$%+ % to -+>% t- ?#+%$ to )+o,% tt t% %$t+%t o t- +% )+o)%+t -t#& +%t $ %#-,% #-% o+ +t?% )#+)o-%-! % )o+to$- o t% o-)t +%#-% o+ t% t+%t:%$t o )t%$t- $ t% -)%$-to$ o :% -%+,%- to t%:& %t%+)$> o+ $o$;)$>& ot%+ )o+to$- t%+%o +% ?%$> %-% to )+,t% $,#- o+ t%+$- $ $t%%$! F#+t%+& )o+to$ o t% $ - ?%$> %-% to )+,t% $,# o+ %+?#-$%-- %$t%+)+-% #$%+ t% ?#-$%-- $:% E)t '+- $ G+%$ C%$t%+! I$%%& t%)%tto$%+- %,%$% -o- tt t o%t% P1&136&483!45 - +%$t- $ 1991 $ P1&679&999!28o+ 1992 +o: t% - %--%%-!

Ao+$>& % o tt t% )o+to$- o t% $ %-% to )+,t% %$tt%- - % -to-% )+t- o t% o-)t %-% to )+,t% $,#- +% $ot %%:)t +o: -# t%-!45 '$t% ot%+ $& t% )o+to$- o t% $ o#)% ? t% o-)t $ )o+to$- o t% o-)t#-% o+ t- )t%$t-& %t%+ )$> o+ $o$;)$>& +% %%:)t +o: +% )+o)%+t t%-!

IN LIGT 'F ALL TE F'REG'ING& t% )%tto$ - PARTIALL GRANTED! T% +%-)o$%$t.#%o$ Ct A--%--o+ - %+%? DIRECTED to %t%+:$%& t%+ #% %+$>& t% )+%-% )o+to$-o t% $ $ t% +% t%+%o +% %-% to )+,t% )%+-o$-& $ to o:)#t% t% +%)+o)%+t t%- #% t%+%o$ - )+o,% o+ ? ! S' 'RDERED!!e, J"., uno, ?*u, !n!n!n, @uu'n, An!"e-S!n*!o, S!no!-Gu*e""e7, C!"o,

=u*"!-!"*ne7, Co"on!, C!"o o"!e, =7#un!, !n Tn!, JJ., #on#u".

CASE DIGEST6L#$> C%$t%+ o t% P))$%- ,- .#%o$ Ct

Facts6 T% )%tto$%+& L#$> C%$t%+ o t% P))$%- - $o$;-toB $ $o$;)+ot %$tt

%-t?-% o$ "$#+ 16& 1981 ? ,+t#% o P+%-%$t D%+%% No! 1823 ot% t .#%o$A,%$#% o+$%+ E)t Ro& C%$t+ D-t+t& .#%o$ Ct! It - +%>-t%+% - t% o$%+ o -)+% o $ $ t% o-)t ?#$> o$-t+#t% $ t% :%! So:% o t% ,$t -)%- o- ot %+% %-% o#t to )+,t% )+t%- $ +%$t- o#t )o+to$ o t% o-)t ?#$> to )+,t%)+t%-! A- -#& t% t --%--o+- o:%$t -:--$> t%)%tto$ $ o$> t% )%tto$%+ ?% o+ )+o)%+t t%-!

T% C%$t+ =o+ o A--%--:%$t A))%- o .#%o$ Ct (C=AA


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10 T% )%tto$%+ o$t%$- tt t - +t?% $-tt#to$ #$%+ t% o$t%t o S%to$ 28

(3& A+t% VI o t% 1987 Co$-tt#to$ $ t- +t%+ - -# - $ot t%+% ? t% t tt t:t- )$> )t%$t-& %-%- -o:% o t% ,$t ot $ +%$t- o#t )o+to$- o t% o-)t?#$> to )+,t% )+t%- o+ - $o:% #$%+ -# ?#-$%-- #$%+tB$> - #-% o+o)%+to$ %)%$-%-! It #+t%+ o$t%$- tt PD 1823 o%- $ot %%:)t t%: +o: - t& t- $ot ?++% +o: -%%B$> %%:)to$ t$ t% )#+,% t% 1987 Co$-tt#to$ o+& Mo+%o,%+& to$t%$- tt %#-,t o%- $ot $%%--+ :%$ -o%!

R%-)o$%$t- Co$t%$to$J T% +%-)o$%$t o$t%$- tt )%tto$%+ - $ot %%:)t +o: t% ):%$t o t% )+o)%+t

t%- o+ t % to )+o,% tt t - +t?% %$tt $ t% - )+o)%+t - t#& +%t$ %#-,% #-% o+ +t?% )#+)o-%-!Issue7s61! %t%+ o+ $ot )%tto$%+ - +t?% $-tt#to$ t$ t% o$t%t o PD 1823 $ t% 1973$ 1987 Co$-tt#to$ $ S%to$ 234(? o RA 7160!2! %t%+ o+ $ot )%tto$%+& o$-%+%- +t?%& - %%:)t% +o: +% )+o)%+t t%-!Rulig6

1 %-! T% o#+t % tt t% )%tto$%+ - +t?% $-tt#to$ t$ t% o$t%t o 1973$ 1987 Co$-tt#to$! T% t%-t %t%+ $ %$t%+)+-% - +t?% $-tt#to$ - to

%t%+:$% t %-t to ++ o#t )#+)o-% +%o+>$% $ - +t?% o+ ++% o#to+ )+ot o+ )+,t% ,$t>%! U$%+ PD 1823& t% )%tto$%+ - $o$;)+ot $ $o$;-toBo+)o+to$ & -#?@%t to t% )+o,-o$- o t% %+%%& - to ?% :$-t%+% ? t%'%$%+ $#$> to-% o +% )oo+ $ -o t% +& $ ?%o:% -#?@%t o +t!U$%+ PD 1823& )%tto$%+ - %$tt% to +%%,% o$to$-& %,%$ t% >t o+ o$to$ - $t% o+: o -#?-%- >+$t% ? t% >o,%+$:%$t! It- +t%+ - +t?% $-tt#to$- $ot o-t -:) ?%#-% t %+,%- $o:% +o: )$> )t%$t& o$to$-& -#?-%->+$t% ? t% >o,%+$:%$t -o o$> - t%-% )+o%%- +% #-% to>%t%+ $ #+t%+$%o t% +t?% o?@%t $ $o :o$% $#+%- to t% ?%$%t o )+,t% )%+-o$ :$>$>t% +t?% %$tt!

2 P+t No! U$%+ PD 1823& t% #$> %$t%+ o%- $ot %$@o $ )+o)%+t t %%:)to$)+,%>%- o+ t- +% )+o)%+t%- - % - t% ?#$> o$-t+#t% t%+%o$! T% )+o)%+tt %%:)to$ #$%+ S%! 28(3& A+t! VI o t% Co$-tt#to$ o t% )+o)%+t t%- o$! T-)+o,-o$ - :)$t% ? S%!243 (? o RA 7160! )+o,%- tt $ o+%+ to ?%%$tt% to t% %%:)to$& t% #$> %$t%+ :#-t ?% ?% to )+o,% ttJ t - +t?%$-tt#to$ $ t- +% )+o)%+t%- +% t#& +%t $ %#-,% #-% o+ +t?%)#+)o-%! P%tto$%+ % to #% %,%$% to )+o,% t% tt%+!t - :%$t ? t#& +%t $ %#-,% - o$t%:)t% $ t% Co$-tt#to$ - t%+%t& ::%t% $ t# ))to$ o t% )+o)%+t t-% to t% )#+)o-% o t%+t?% $-tt#to$ $ $ot t% #-% o $o:% +o: t% +% )+o)%+t to %t%+:$% t-%%:)to$ +o: )+o)%+t t%-! WDo:$$t o+ P+$)X #-% $$ot ?% -#?-tt#t% tW#-% %#-,%X to#t ,ot$> t% Co$-tt#to$& t%+%o+% -o% - -$o$:o#- t%#-,% $ o$t+-t t )%tto$%+- o$-t+#to$ o t% o+!Ao+$>& t% )o+to$- o#)% ? t% o-)t #-% o+ t- )t%$t- +% %%:)t +o:+% )+o)%+t t%- % to-% %-% to )+,t% %$tt%- +% $ot %%:)t +o: -# t%-!

(2 Ab$a +alle( College %s. A,uio (G.R. No. L-39086, June 15, 1988)

FU## CASE6

(G!R! No! L;39086 "#$% 15& 1988A=RA VALLE C'LLEGE& INC!& +%)+%-%$t% ? PEDR' V! ='RG'NIA& )%tto$%+& ,-!

'N! "UAN P! A.UIN'& "#>%& Co#+t o F+-t I$-t$%& A?+ ARMIN M! CARIAGA& P+o,$


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11 T+%-#+%+& A?+ GASPAR V! ='S.UE& M#$) T+%-#+%+& =$>#%& A?+ EIRS 'F PATERN'

MILLARE&+%-)o$%$t-!

PARAS! J.:

T- - )%tto$ o+ +%,% o$ %+to++ o t% %-o$ 8 o t% %#$t Co#+t o F+-t I$-t$% o

A?+& =+$ I& t% "#$% 14& 1974& +%$%+% $ C, C-% No! 656& %$tt% A?+ V% "#$o+Co%>%& I$!& +%)+%-%$t% ? P%+o V! =o+>o$& )$t ,-! A+:$ M! C+> - P+o,$ T+%-#+%+ o A?+& G-)+ V! =o-#% - M#$) T+%-#+%+ o =$>#%& A?+ $ Pt%+$o M+%%%$$t-& t% %+%t )o+to$ o +%-J

IN VIE 'F ALL TE F'REG'ING& t% Co#+t %+%? %+%-J

Tt t% -t+$t -%#+% $ -% ? t% M#$) T+%-#+%+ o =$>#%& A?+& t% P+o,$ T+%-#+%+ o - )+o,$% >$-t t% ot $ ?#$> o t% A?+ V% "#$o+ Co%>%& I$!&+%)+%-%$t% ? D+%to+ P%+o =o+>o$ ot% t =$>#%& A?+& - ,

Tt -$% t% -oo - $ot %%:)t +o: )$> t%-& t -o# t%+%o+% ) ?B t%- $

t% :o#$t o P5&140!31 $ ?B t%- $ )%$t%- +o: t% )+o:#>to$ o t- %-o$

Tt t% :o#$t %)o-t% ? t% )$t : t% -#: o P60&000!00 ?%o+% t% t+& ?%o$-t% to )) o+ t% ):%$t o t% ?B t%- $ o+ t% +%%:)to$ o t% )+o)%+t $#%-to$& t% :o#$t - %-- t$ P6&000!00& t% +%:$%+ :#-t ?% +%t#+$% to t% D+%to+ oP%+o =o+>o$& o +%)+%-%$t- t% )$t %+%$

Tt t% %)o-t o t% M#$) T+%-#+%+ $ t% :o#$t o P6&000!00 -o ?%o+% t% t+ :#-t?% +%t#+$% to - M#$) T+%-#+%+ o =$>#%& A?+

A$ $ t% -% - %+%? o+%+% -:--% t o-t- >$-t t% )$t!

S' 'RDERED! (Roo& ))! 22;23

P%tto$%+& $ %#to$ o+)o+to$ $ $-tt#to$ o >%+ %+$$> # $o+)o+t% tt% S%#+t%- $ E$>% Co::--o$ $ 1948& % o:)$t (A$$% 1 o A$-%+ ? t%+%-)o$%$t- %+- o Pt%+$o M+% Roo& ))! 95;97 o$ "# 10& 1972 $ t% o#+t ! uo to$$# $ %+% ,o t% Not% o S%#+%Y $ t% Not% o S% o t- ot $ ?#$>ot% t =$>#%& A?+& o+ $o$;):%$t o +% %-tt% t%- $ )%$t%- :o#$t$> toP5&140!31! S Not% o S%#+% o t% o%>% ot $ ?#$> o,%+% ? '+>$ C%+tt%o Tt% No! .;83 # +%>-t%+% $ t% $:% o )%tto$%+& )$t ?%o& o$ "# 6& 1972& ?+%-)o$%$t- M#$) T+%-#+%+ $ P+o,$ T+%-#+%+& %%$$t- ?%o& - --#% o+ t%

-t-to$ o t% - t%- t%+%o$! T% Not% o S% - #-% to ?% -%+,% #)o$ t%)%tto$%+ ? t% +%-)o$%$t t+%-#+%+- o$ "# 8& 1972 o+ t% -% t )#? #to$ o -o%>% ot $ ?#$>& -% - % o$ t% -:% t%! D+! Pt%+$o M+%& t%$M#$) Mo+ o =$>#%& A?+& o%+% t% >%-t ? o P6&000!00 - #%)t%! T% %+tt% o -% - o++%-)o$$> --#% to :!

'$ A#>#-t 10& 1972& t% +%-)o$%$t Pt%+$o M+% ($o %%-% % t+o#> o#$-t% :oto$ to -:-- t% o:)$t!

'$ A#>#-t 23& 1972& t% +%-)o$%$t P+o,$ T+%-#+%+ $ M#$) T+%-#+%+& t+o#> t%$P+o,$ F- Lo+%to C! Ro$& % t%+ $-%+ (A$$% 2 o A$-%+ ? t% +%-)o$%$t-


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12%+- o Pt%:o M+% Roo& ))! 98;100 to t% o:)$t! T- - oo% ? $ :%$%$-%+ (A$$% 3& & Roo& ))! 101;103 o$ A#>#-t 31& 1972!

'$ S%)t%:?%+ 1& 1972 t% +%-)o$%$t Pt%+$o M+% % - $-%+ (A$$% 5& Roo& ))106;108!

'$ 'to?%+ 12& 1972& t t% o+%- -% o t% -oo )+%:-%- t )#? #to$& t%

+%-)o$%$t "#>%& o$! "#$ P! A#$o o t% Co#+t o F+-t I$-t$% o A?+& =+$ I& o+%+%(A$$% 6& Roo& ))! 109;110 t% +%-)o$%$t- )+o,$ $ :#$) t+%-#+%+- to%,%+ to t% C%+B o Co#+t t% )+o%%- o t% #to$ -%! %$%& o$ D%%:?%+ 14& 1972&)%tto$%+& t+o#> D+%to+ =o+>o$& %)o-t% t t% t+ o#+t t% -#: o P6&000!00%,%$% ? PN= C%B No! 904369!

'$ A)+ 12& 1973& t% )+t%- %$t%+% $to -t)#to$ o t- o)t% $ %:?o% ? t%t+ o#+t $ t- #%-to$% %-o$! S St)#to$- +%-J

STIPULATI'N 'F FACTS

C'ME N' t% )+t%-& ---t% ? o#$-%-& $ to t- o$o+?% Co#+t +%-)%t# %$t%+ $to

t% oo$> >+%% -t)#to$ o t-J

1! Tt t% )%+-o$ +#:-t$%- o t% )+t%- - -tt% $ )+>+) 1 o t% o:)$t -:tt% ?#t t% )+t#+ )%+-o$ o M+! A+:$ M! C+> - to ?% -#?-tt#t%& o%,%+& ?$o$% o - t# o$> t% )o-to$ o P+o,$ T+%-#+%+ o t% P+o,$% o A?+

2! Tt t% )$t A?+ V% "#$o+ Co%>%& I$! - t% o$%+ o t% ot $ ?#$>- t%+%o$ot% $ =$>#%& A?+ #$%+ '+>$ C%+tt% o Tt% No! 0;83

3! Tt t% %%$$t G-)+ V! =o-#%& - M#$) t+%-#+%+ o =$>#%& A?+ #-% to ?%-%+,% #)o$ t% A?+ V% "#$o+ Co%>%& I$! Not% o S%#+% o$ t% )+o)%+t o - -oo

#$%+ '+>$ C%+tt% o Tt% No! 0;83 o+ t% -t-to$ o +% )+o)%+t t%- t%+%o$&:o#$t$> to P5&140!31 t% Not% o S%#+% ?%$> t% o$% tt% to t% o:)$t - E?tA

4! Tt o$ "#$% 8& 1972 t% ?o,% )+o)%+t%- o t% A?+ V% "#$o+ Co%>%& I$! - -o t)#? #to$ o+ t% -t-to$ o t% #$) +% )+o)%+t t%- t%+%o$ $ t% -:% --o to %%$$t Pt%+$o M+% o o%+% t% >%-t ? o P6&000!00 $ C%+tt% oS% $ - ,o+ - --#% ? t% %%$$t M#$) T+%-#+%+!

5! Tt ot%+ :tt%+- $ot )+t#+ $ -)% o,%+% ? t- -t)#to$ o t- ?%t% -#?@%t o %,%$% ? t% )+t%-!

EREF'RE& t - +%-)%t# )+% o t% o$o+?% Co#+t to o$-%+ $ :t t--t)#to$ o t- o$ t% )o$t >+%% #)o$ ? t% )+t%-!

=$>#%& A?+& A)+ 12& 1973!

S>! A>+)$o =+$t%- T) AGRIPIN' =RILLANTESAtto+$% o+ P$t

S>! Lo+%to Ro$ T) L'RET' R'LDANP+o,$ F-Co#$-% o+ D%%$$t-P+o,$ T+%-#+%+ o

A?+ $ t% M#$) T+%-#+%+ o =$>#%& A?+

S>! D%:%t+o V! P+% T)! DEMETRI' V! PRE


13/51

13Atto+$% o+ D%%$$t Pt%+$o M+% (Roo& ))!

17;18


14/51

A-% +o: t% St)#to$ o Ft-& t% t+ o#+t :o$> ot%+-& o#$ t% oo$>J ( tt t%-oo - +%o>$% ? t% >o,%+$:%$t $ - o%+$> P+:+& > Soo $ Co%>%Co#+-%-& $ - -oo )o)#to$ o :o+% t$ o$% to#-$ -t#%$t- $ (? tt t -ot% +>t $ t% %+t o t% to$ o =$>#%& % :%t%+- +o: t% ) $ ?o#t 120:%t%+- +o: t% Co#+t o F+-t I$-t$% ?#$> ( tt t% %%:%$t+ )#)- +% o#-% $ to;-to+% ?#$> +o-- t% -t+%%t ( tt t% > -oo $ o%>% -t#%$t- +% o#-% $t% :$ ?#$> (% tt t% D+%to+ t - : - $ t% -%o$ oo+ o t% :$ ?#$>$ ( tt t% $$# >+o-- $o:% o t% -oo +%%- :o+% t$ o$% #$+% to#-$)%-o-!

F+o: t% o+%>o$>& t% o$ --#% %t o+ t% Co#+t to %t%+:$% $ - >+%% ? t%)+t%-& - %t%+ o+ $ot t% ot $ ?#$> $ #%-to$ +% ue e/#ue o" eu#!*on!

u"oe! (Roo& )! 20

T% -#%%$> P+o,$ F-& o$! "o-% A! Soo:o$ $ - A---t$t& o$! E#-t#o /Mo$t%+o& % M%:o+$#: o+ t% Go,%+$:%$t o$ M+ 25& 1974& $ S#))%:%$tM%:o+$#: o$ M 7& 1974& %+%$ t% o)$% tt ?-% o$ t% %,%$%& t% -))?%& o#+t %-o$- $ @#+-)+#%$%& t% -oo ?#$> $ -oo ot #-% o+%#to$ )#+)o-%- o t% A?+ V% Co%>%& I$!& +% %%:)t% +o: t% ):%$t o t%-!(A$$%%- =& =;1 o P%tto$ Roo& ))! 24;49 44 $ 49!

No$%t%%--& t% t+ o#+t ->+%% ?%#-% o t% #-% o t% -%o$ oo+ ? t% D+%to+ o)%tto$%+ -oo o+ +%-%$t )#+)o-%-! % t#- +#% o+ t% >o,%+$:%$t $ +%$%+% t%--% %-o$!

At%+ ,$> ?%%$ >+$t% ? t% t+ o#+t t%$ (10 - +o: A#>#-t 6& 1974 t$ to)%+%t t- ))% (P%+ '+%+ t% A#>#-t 6& 1974 A$$% G o P%tto$ Roo& )! 57 )%tto$%+$-t% ,% o t% $-t$t )%tto$ o+ +%,% o$ #e"*o"!" t )+%+ o+ )+%:$+$@#$to$ ?%o+% t- Co#+t& )%tto$ - % o$ A#>#-t 17& 1974 (Roo& )!2!

I$ t% +%-o#to$ t% A#>#-t 16& 1974& t- Co#+t +%-o,% to >,% DUE C'URSE to t% )%tto$(Roo& )! 58! R%-)o$%$t- %+% +%#+% to $-%+ - )%tto$ (Roo& )! 74!

P%tto$%+ +-% t% oo$> -->$:%$t- o %++o+J

I! TE C'URT = @BO ERRED IN SUSTAINING AS VALID TE SEI/URE AND SALE 'F TEC'LLEGE L'T AND =UILDING USED F'R EDUCATI'NAL PURP'SES 'F TE PETITI'NER!

II! TE C'URT = @BO ERRED IN DECLARING TAT TE C'LLEGE L'T AND =UILDING 'F TE PETITI'NER ARE N'T USED EKCLUSIVEL F'R EDUCATI'NAL PURP'SES MEREL=ECAUSE TE C'LLEGE PRESIDENT RESIDES IN 'NE R''M 'F TE C'LLEGE=UILDING!

III! TE C'URT = @BO ERRED IN DECLARING TAT TE C'LLEGE L'T AND =UILDING 'F TE PETITI'NER ARE N'T EKEMPT FR'M PR'PERT TAKES AND IN 'RDERINGPETITI'NER T' PA P5&140!31 AS REALT TAKES!

IV! TE C'URT = @BO ERRED IN 'RDERING TE C'NFISCATI'N 'F TE P6&000!00DEP'SIT MADE IN TE C'URT = PETITI'NER AS PAMENT 'F TE P5&140!31 REALT

TAKES! (S%% =+% o+ t% P%tto$%+& ))! 1;2

T% :$ --#% $ t- -% - t% )+o)%+ $t%+)+%tto$ o t% )+-% #-% %#-,% o+%#to$ )#+)o-%-!


15/51

P%tto$%+ o$t%$- tt t% )+:+ #-% o t% ot $ ?#$> o+ %#to$ )#+)o-%-& $ $ott% $%$t #-% t%+%o& %t%+:$%- $ %%:)to$ +o: )+o)%+t t%- #$%+ S%to$ 22 (3&A+t% VI o t% 1935 Co$-tt#to$! %$%& t% -%#+% $ -% o -#?@%t o%>% ot $?#$>& +% o$t++ t%+%to - % - to t% )+o,-o$ o Co::o$%t At No! 470&ot%+-% B$o$ - t% A--%--:%$t L& +% to#t %> ?-- $ t%+%o+% ,o

'$ t% ot%+ $& )+,t% +%-)o$%$t- :$t$ tt t% o%>% ot $ ?#$> $#%-to$ %+% -#?@%t% to -%#+% $ -% to $-%+ o+ t% #$) t +% #-%J (1 o+t% %#to$ )#+)o-%- o t% o%>% (2 - t% )%+:$%$t +%-%$% o t% P+%-%$t $D+%to+ t%+%o& M+! P%+o V! =o+>o$& $ - : $#$> t% $;- $ >+$+%$$ (3 o+ o::%+ )#+)o-%- ?%#-% t% >+o#$ oo+ o t% o%>% ?#$> - ?%$> #-%$ +%$t% ? o::%+ %-t?-:%$t& t% No+t%+$ M+B%t$> Co+)o+to$ (S%% )oto>+)tt% - A$$% 8 (Co::%$t Roo& )! 90

D#% to t- t:% +:%& t% o$-tt#to$ )+o,-o$ $- ))to$ $ t% -% t?+ - S%to$ 22& )+>+) 3& A+t% VI& o t% t%$ 1935 P))$% Co$-tt#to$& %)+%-- >+$t- %%:)to$ +o: +%t t%- o+ C%:%t%+%-& #+%- $ )+-o$>%- o+o$,%$t- ))#+t%$$t t%+%to& $ $-& ?#$>-& $ :)+o,%:%$t- ue e/#ue o++%>o#-& +t?% o+ %#to$ )#+)o-%- !!

R%t,% t%+%to& S%to$ 54& )+>+) & Co::o$%t At No! 470 - :%$% ?

R%)#? At No! 409& ot%+-% B$o$ - t% A--%--:%$t L& )+o,%- T% oo$> +% %%:)t% +o: +% )+o)%+t t #$%+ t% A--%--:%$t L

( #+%- $ )+-o$>%- o+ o$,%$t- ))#+t%$$t t%+%to& $ $-& ?#$>-& $:)+o,%:%$t- ue e/#ue o+ +%>o#-& +t?%& -%$t o+ %#to$ )#+)o-%-

I$ t- +%>+ )%tto$%+ +>#%- tt t% )+:+ #-% o t% -oo ot $ ?#$> - t%?- $ o$t+o$> >#%& $o+: $ -t$+ to %t%+:$% t %%:)to$& $ $ot t% :%+%$%$t #-% t%+%o

A- %+ - 1916 $ AC= o !n! . Coe#*o" o n*e"n! Reenue & 33 P! 217 1916t- Co#+t +#% tt % t : ?% t+#% tt t% MCA B%%)- o>$> $ ?o+$> o#-%$ :$t$- +%-t#+$t o+ t- :%:?%+-& -t t%-% o $ot o$-tt#t% ?#-$%-- $ t% o+$+

%)t$% o t% o+& ?#t $ $-tt#to$ #-% %#-,% o+ +%>o#-& +t?% $%#to$ )#+)o-%-& $ - -#& t - %$tt% to ?% %%:)t% +o: tto$!I$ t% -% o =-o) o Nue! Seo! . "on#! o!" o Io#o No"*e & 51 P! 352

1972& t- Co#+t $#% $ t% %%:)to$ ,%>%t?% >+%$ $ $ @%$t ot $ $ot%+ot o+:%+ #-% - %:%t%+! It - +% tt t% t%+: #-% %#-,% o$-%+-$%$t #-% -o! T#-& t% %%:)to$ +o: ):%$t o $ t $ ,o+ o t% o$,%$t$#%-& $ot o$ t% $ t# o#)% ? t% ?#$> ?#t -o t% @%$t >+%$%,ot% to t% $%$t #-% o t% )+- )+%-t! T% ot - $ot #-% o+ o::%+)#+)o-%- ?#t -%+,%- -o% - -o+t o o>$> )%& -o #%- o+ %%:)to$ ?%#-% t-o$-tt#t%- $%$t #-% $ +%>o#- #$to$-

T% )+-% %#-,% #-% o+ %#to$ )#+)o-%- - #+t%+ +% ? t- Co#+t

$ t% -%- o De""e"! . @ue7on C* o!" o !e'en* =e!& 3 SCRA 186 1961$ Co''one" o In*e"n! Reenue . $o o *$e on!" *"#* & 14 SCRA 991 1965t#- Z

Mo+%o,%+& t% %%:)to$ $ ,o+ o )+o)%+t #-% %#-,% o+ +t?% o+ %#to$)#+)o-%- - Y$ot :t% to )+o)%+t t# $-)%$-?%Y t%+%o+ (Coo% o$ Tto$& Vo! 2& )!1430& ?#t %t%$- to t%- +% $%$t to $ +%-o$? $%%--+ o+ t%o:)-:%$t o - )#+)o-%-& -# - $ t% -% o o-)t-& -oo o+ t+$$> $#+-%-& $#+-%-Y o:%& )+o)%+t #-% to )+o,% o#-$> t%- o+ $t%+$-& +%-%$t oto+--#)%+$t%$%$t-& $ ot%+ :%:?%+- o t% o-)t -t& $ +%+%to$ t%- o+ -t#%$t$#+-%-& $t%+$-& $ +%-%$t-Y (84 C"S 6621& -# - At%t %- $#$> +: #-% o+


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t% $:t%- o t% $-tt#to$! (Coo% o$ Tto$& Vo! 2& )! 1430 T% t%-t o %%:)to$ +o: tto$ - t% #-% o t% )+o)%+t o+ )#+)o-%- :%$to$% $

t% Co$-tt#to$ (A)o-to P+%%t ,! Ct T+%-#+%+ o =>#o& 71 P& 547 1941It :#-t ?% -t+%--% o%,%+& tt % t- Co#+t o- :o+% ?%+ $ $o$;+%-t+t,%

$t%+)+%tto$ o t% )+-% %#-,% #-% o+ %#to$ )#+)o-%- - )+o,% o+ $ A+t%VI& S%to$ 22& )+>+) 3 o t% 1935 P))$% Co$-tt#to$& +%-o$?% %:)-- - -?%%$ :% tt %%:)to$ %t%$- to t%- +% $%$t to $ +%-o$? $%%--+o+ t% o:)-:%$t o t% :$ )#+)o-%-! 't%+-% -tt%& t% #-% o t% -oo ?#$> o+ot o+ o::%+ )#+)o-%- - $%t%+ o$t%:)t% ? & $o+ ? @#+-)+#%$%! T#-& %t% #-% o t% -%o$ oo+ o t% :$ ?#$> $ t% -% t ?+ o+ +%-%$t )#+)o-%- o t%D+%to+ $ - :& : $ @#-tto$ #$%+ t% o$%)t o $%$t #-%& -o:):%$t+ to t% :$ o+ )+:+ )#+)o-%Z%#to$& t% %-% o t% +-t oo+ t%+%o tot% No+t%+$ M+B%t$> Co+)o+to$ $$ot ? $ -t+%t o t% :>$to$ ?% o$-%+%$%$t to t% )#+)o-% o %#to$

It ?% $ot% o%,%+ tt t% o+%:%$to$% %-% ))%+- to ,% ?%%$ +-% o+t% +-t t:% $ t- Co#+t! Tt t% :tt%+ - $ot tB%$ #) $ t% to o#+t - +% ))+%$t $t% %-o$ o +%-)o$%$t "#>%! No :%$to$ t%+%o - :% $ t% -t)#to$ o t-& $ot%,%$ $ t% %-+)to$ o t% -oo ?#$> ? t% t+ @#>%& ?ot %:?o% $ t% %-o$

$o+ - o$% o t% --#%- to +%-o,% $ o+%+ to %t%+:$% %t%+ o+ $ot - )+o)%+ : ?%%%:)t% +o: ):%$t o +% %-tt% t%- (Roo& ))! 17;23! '$ t% ot%+ $& t -$ot%o+t tt -# t - $ot -)#t% %,%$ t%+ t - +-% $ t- Co#+t!

I$%%& t - o:t tt t- $ot +-% $ t% o%+ o#+t $$ot ?% tB%$ #) o+ t%+-t t:% o$ ))%! No$%t%%--& - $ %%)to$ to t% +#%& t- Co#+t - % tt to#> t# --#% - $ot -#+% +-% ?%o& -t $ t% $t%+%-t o -#?-t$t @#-t%& t- Co#+t -$ot )+%,%$t% +o: o$-%+$> ),ot t# :tt%+! T% S#)+%:% Co#+t - ot% t:)% #to+t to +%,% ))?% %++o+- $ot -->$% - -# t $- tt t%+ o$-%+to$- $%%--+ $ ++,$> t @#-t %-o$! (P%+% ,-! Co#+t o A))%-& 127 SCRA 645 1984!

U$%+ t% 1935 Co$-tt#to$& t% t+ o#+t o++%t ++,% t t% o$#-o$ tt t%

-oo ?#$> - % - t% ot %+% t - ?#t& -o# ?% t%& $ot ?%#-% t% -%o$ oo+o t% -:% - ?%$> #-% ? t% D+%to+ $ - : o+ +%-%$t )#+)o-%-& ?#t ?%#-% t%+-t oo+ t%+%o - ?%$> #-% o+ o::%+ )#+)o-%-! o%,%+& -$% o$ )o+to$ - #-%o+ )#+)o-%- o o::%+%& t - o$ + tt o t% --%--% t ?% +%t#+$% to t% -oo$,o,%!

PREMISES C'NSIDERED& t% %-o$ o t% Co#+t o F+-t I$-t$% o A?+& =+$ I& -%+%? AFFIRMED -#?@%t to t% :oto$ tt o t% --%--% t ?% +%t#+$% to t%)%tto$%+! S' 'RDERED!

A!, C.J., een#o-De""e"!, !! !n S!"'en*o, JJ., #on#u".

CASE DIGEST6 A=RA VALLE C'LLEGE& INC! VS A.UIN'

Facts6 P%tto$%+& $ %#to$ o+)o+to$ $ $-tt#to$ o >%+ %+$$> # $o+)o+t%t t% S%#+t%- $ E$>% Co::--o$ $ 1948& % o:)$t to $$# $ %+%,o t% WNot% o S%#+% $ t% WNot% o S%X o t- ot $ ?#$> ot% t =$>#%&A?+& o+ $o$;):%$t o +% %-tt% t%- $ )%$t%- :o#$t$> to P5&140!31! S WNot% oS%#+%X ? +%-)o$%$t- M#$) T+%-#+%+ $ P+o,$ T+%-#+%+& %%$$t- ?%o& ---#% o+ t% -t-to$ o t% - t%- t%+%o$!

T% )+t%- %$t%+% $to -t)#to$ o t- o)t% $ %:?o% ? t% t+ o#+t $t- #%-to$% %-o$! T% t+ o#+t +#% o+ t% >o,%+$:%$t& o$> tt t% -%o$ oo+ o


17/51

t% ?#$> - ?%$> #-% ? t% +%to+ o+ +%-%$t )#+)o-%- $ tt t% >+o#$ oo+ #-%$ +%$t% ? No+t%+$ M+B%t$> Co+)o+to$& o::%+ %-t?-:%$t& $ t#- t%)+o)%+t - $ot ?%$> #-% %#-,% o+ %#to$ )#+)o-%-! I$-t% o )%+%t$> $ ))%&)%tto$%+ ,% o t% $-t$t )%tto$ o+ +%,% o$ %+to++ t )+%+ o+ )+%:$+$@#$to$ ?%o+% t% S#)+%:% Co#+t& ? $> - )%tto$ o$ 17 A#>#-t 1974Issue6 %t%+ o+ $ot t% ot $ ?#$> $ #%-to$ +% #-% %#-,% o+ %#to$)#+)o-%-ORuligJ N'! It :#-t ?% -t+%--% tt % t% o#+t o- :o+% ?%+ $ $o$;+%-t+t,% $t%+)+%tto$ o t% )+-% W%#-,% #-% o+ %#to$)#+)o-%-X - )+o,%o+ $ t% A+t% VI S%to$22& P+>+) o t%1935P))$% Co$-tt#to$& +%-o$?% %:)-- - - ?%%$ :% tt %%:)to$%t%$- to t%- +% $%$t to $ +%-o$? $%%--+ o+ t% o:)-:%$t ot% :$ )#+)o-%! 't%+-% -tt%& t% #-% o t% -oo ?#$> o+ ot o+ o::%+)#+)o-%- - $%t%+ o$t%:)t% ? & $o+ ? @#+-)+#%$%! T#-& % t% #-% o t% -%o$oo+ o t% :$ ?#$> $ t% -% t ?+ o+ +%-%$t )#+)o-%- o t% D+%to+ $ -:& : $ @#-tto$ #$%+ t% o$%)t o $%$t #-%& - o:):%$t+ to t%:$ o+ )+:+ )#+)o-% %#to$& t% %-% o t% +-t oo+ t%+%o tot%No+t%+$ M+B%t$> Co+)o+to$ $$ot ? $ -t+%t o t% :>$to$ ?% o$-%+%

$%$t to t% )#+)o-%- o%#to$!U$%+ t% 1935 Co$-tt#to$& t% t+ o#+t o++%t ++,% t t% o$#-o$ tt t%-oo ?#$> - % - t% ot %+% t - ?#t& -o# ?% t%& $ot ?%#-% t% -%o$ oo+o t% -:% - ?%$> #-% ? t% +%to+ $ - : o+ +%-%$t )#+)o-%-& ?#t ?%#-% t%+-t oo+ t%+%o - ?%$> #-% o+ o::%+ )#+)o-%-! o%,%+& -$% o$ )o+to$ - #-%o+ )#+)o-%- o o::%+%& t - o$ + tt o t% --%--% t ?% +%t#+$ to t% -oo$,o,%!

SECTION 29. No 'one $! e ! ou* o *$e T"e!u" e/#e* n u"u!n#e o !n

!"o"!*on '!e !.

No u# 'one o" "oe"* $! e !"o"!*e, !e, !, o" e'oe, "e#* o"n"e#*, o" *$e ue, ene*, o" uo"* o !n e#*, #$u"#$, eno'n!*on, e#*!"!nn**u*on, o" *e' o "eon, o" o !n "e*, "e!#$e", 'n*e", o" o*$e" "eou *e!#$e", o"n*!" ! u#$, e/#e* $en u#$ "e*, "e!#$e", 'n*e", o" n*!" !ne *o *$e!"'e o"#e, o" *o !n en! n**u*on, o" oe"n'en* o"$!n!e o" e"o!"u'.

= 'one #oe#*e on !n *!/ ee o" ! e#! u"oe $! e *"e!*e ! ! e#!un !n ! ou* o" u#$ u"oe on. I *$e u"oe o" $#$ ! e#! un ! #"e!*e $!een ue o" !!none, *$e !!n#e, !n, $! e *"!ne""e *o *$e ene"! un o *$e


18/51

Goe"n'en*.

CASE345 Osmea %s. O$bos

(GR No. 99886, !"#$ 31, 1993)325 Agli0a( %s. Rui'

(G.R. No. 45459, !"#$ 13, 193%)

345 Osmea %s. O$bos (GR No. 99886, !"#$ 31, 1993)

FU## CASE6

(G!R! No! 99886 M+ 31& 1993

"'N ! 'SME[A& )%tto$%+&,-!

'SCAR 'R='S& $ - )t - E%#t,% S%+%t+ "ESUS ESTANISLA'& $ - )t -S%+%t+ o F$$% ENCESLA' DELA PA/& $ - )t - % o t% '

A+- REK V! TANTI'NGC'& $ t% ENERG REGULAT'R ='ARD& +%-)o$%$t-!

N!#$u"! & S!"'en*o o" e**one".

T$e So#*o" Gene"! o" u# "eonen*.

NAR+ASA! C.J.:

T% )%tto$%+ -%%B- t% o++%t,%& 4 )+o?t,% $ o%+,% +%:%%- )+o,% ? R#%65 o t% R#%- o Co#+t& 2 #)o$ t% oo$> )o-t% >+o#$-& 7.J :

1 t% $,t o t% TRUST ACC'UNT $ t% ?ooB- o o#$t o t% M$-t+ o E$%+> ($o&t% ' A+-& +%t% )#+-#$t to \ 8& )+>+) 1& o P!D! No! 1956& - :%$%&

- +%to$ o t+#-t #$ ?%$> o$t++ to S%to$ 29 (3& A+t% VI o t% ! ! Co$-tt#to$

4

2 t% #$o$-tt#to$t o \ 8& )+>+) 1 ( o P!D! No! 1956& - :%$% ? E%#t,%'+%+ No! 137& o+ ?%$> $ #$#% $ $, %%>to$ o %>-t,% )o%+ ! ! to t% E$%+>R%>#to+ =o+ ;

3 t% %>t o t% +%:?#+-%:%$t- to o o:)$%-& ) o#t o t% ' P+% St?to$F#$& +) 2 (2 o P! D! 1956& - :%$% $4 t% o$-%#%$t $#t o t% '+%+ t% D%%:?%+ 10& 1990 $ t% $%%--t o +o?Bo t% )#:) )+%- $ )%t+o%#: )+o#t- to t% %,%- )+%,$> )+o+ to t% - '+%+!

It ?% +%% tt o$ 'to?%+ 10& 1984& P+%-%$t F%+$$ M+o- --#% P!D! 1956

+%t$> S)% Ao#$t $ t% G%$%+ F#$& %->$t% - t% ' P+% St?to$ F#$('PSF! T% 'PSF - %->$% to +%:?#+-% o o:)$%- o+ o-t $+%-%- $ +#% o $:)o+t% )%t+o%#: )+o#t- +%-#t$> +o: %$>% +t% @#-t:%$t- $ +o: $+%-%- $t% o+ :+B%t )+%- o +#% o!

S#?-%#%$t& t% 'PSF - +%--% $to t+#-t ?t o#$t& $ ,+t#% o E!'!1024& = $ o+%+% +%%-% +o: t% Nto$ T+%-#+ to t% M$-t+ o E$%+>! T% -:%E%#t,% '+%+ -o #to+% t% $,%-t:%$t o t% #$ $ >o,%+$:%$t -%#+t%-& t t%%+$$>- +o: -# )%:%$t- +#$> to t% #$

P+%-%$t Co+o$ C! A#$o& :%$% P!D! 1956! S% )+o:#>t% E%#t,% '+%+ No!


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137 o$ F%?+#+ 27& 1987& %)$$> t% >+o#$- o+ +%:?#+-%:%$t to o o:)$%- o+)o--?% #o* une""e#oe" $#++% - +%-#t o t% +%#to$ o o:%-t )+%- o )%t+o%#:)+o#t-& t% :o#$t o t% #$%++%o,%+ ?%$> %t o+ %t%+:$to$ ? t% M$-t+ oF$$%!

No& t% )%tto$ %>%- tt t% -tt#- o t% 'PSF - o M+ 31& 1991 -o% T%+:$ F#$ =$% %t o -o:% P12!877 ?o$ tt to ?t% t% o+-%$$> %t&t% E$%+> R%>#to+ =o+ ! ! --#% $ '+%+ o$ D%%:?%+ 10& 1990& ))+o,$> t% $+%-%$ )#:) )+%- o )%t+o%#: )+o#t-& $ t t% +t% o +%o#):%$t& t% 'PSF %t -o#,% ?%%$ # o,%+% $ -)$ o - (6 :o$t-& ?#t t- $ott-t$$>& t% +%-)o$%$t- Z'-+ '+?o-& $ - )t - E%#t,% S%+%t+ "%-#- E-t$-o& $ - )t - S%+%t+o F$$% %$%-o % P& $ - )t - % o t% ' A+- C+:$R% V! T$to$>o $ t% E$%+> R%>#to+ =o+ Z +% )o-% to %)t& )+o%-- $ ):- $ot #to+% #$%+ P!D! 1956! 9

T% )%tto$ #+t%+ ,%+- tt t% +%to$ o t% t+#-t #$ ,ot%- \29(3& A+t% VI o t% Co$-tt#to$& +%$> - oo-

(3 A :o$% o%t% o$ $ t %,% o+ -)% )#+)o-% - ?% t+%t% - -)% #$ $ ) o#t o+ -# )#+)o-%- o$! I t% )#+)o-% o+ -)% #$

- +%t% - ?%%$ #% o+ ?$o$%& t% ?$%& $& - ?% t+$-%++% to t%

>%$%+ #$- o t% Go,%+$:%$t

T% )%tto$%+ +>#%- tt t% :o$%- o%t% )#+-#$t to ! ! P!D! 1956& - :%$%:#-t ?% t+%t% - YSPECIAL FUND&Y $ot - Yt+#-t o#$tY o+ Yt+#-t #$&Y $ tt -)% t - o%t% o+ -)% )#+)o-%& t% +%,%$#% >%$%+t% t%+%+o: - Y?% t+%t%- -)% #$Y to ?% #-% o$ o+ t% )#+)o-% $t%& $ $ot $$%% to $ot%+>o,%+$:%$t o?@%t,%! 4> P%tto$%+ #+t%+ )o$t- o#t tt -$% Y-)% #$Y o$--t- o:o$%- o%t% t+o#> t% t$> )o%+ o Stt%& u#$ !'oun* eon *o *$e S*!*eto#> t% #-% t%+%o - :t% to t% -)% )#+)o-%o?@%t,% o+ t - +%t%! 44

% -o o$t%$- tt t% %%>to$ o %>-t,% #to+t to t% ER= ,ot%- \ 28 (2!A+t% VI o t% Co$-tt#to$& 7 !

(2 T% Co$>+%-- :& ? & #to+% t% P+%-%$t to & t$ -)%% :t-&$ -#?@%t to -# :tto$- $ +%-t+to$- - t : :)o-%& t+ +t%-& :)o+t $ %)o+t

#ot-& to$$>% $ +>% #%-& $ ot%+ #t%- o+ :)o-t- t$ t% +:%o+B ot% $to$ %,%o):%$t )+o>+: o t% Go,%+$:%$t

$& $-:# - t% %%>to$ +%t%- to t% %%+-% o t% )o%+ o tto$& *$e'*, '*!*on !n "e*"#*on 'u* e u!n**!*e, *$!* , *$e ! 'u* no* on

e# $o *o *!/, $o ($!) e *!/e (!n) $!* *$e *!/ o", u* !o 'oe ! e##

'* on $o 'u#$ *o *!/ ! 42

T% )%tto$%+ o%- $ot -#>>%-t tt t+#-t o#$t - %> e" e& ?#t :$t$- ttt% :o$%- o%t%& o+: )+t o t% 'PSF& -o# ?% :$t$% $ e#! !##oun* o

t% >%$%+ #$ o+ t% +%-o$ tt t% Co$-tt#to$ -o )+o,%-& $ ?%#-% t% +%&-#))o-%& *!/e ee o" ! e#! u"oe! % --#:%- tt t% F#$ - o+:% +o: t#$o#?t% ?%#-% )o+to$ t%+%o - tB%$ +o: o%to$- o ! !o"e' t%- $ t%$+%-%- t%+%o$

It t#- ))%+- tt t% %$>% )o-% ? t% )%tto$%+ - )+%:-% )+:+ o$ t%,% tt t% )o%+- >+$t% to t% ER= #$%+ P!D! 1956& - :%$%& )+tB% o t% $t#+% ot% tto$ )o%+ o t% Stt%! T% Soto+ G%$%+ o?-%+,%- tt t% +>#:%$t +%-t- o$ t%--#:)to$ tt t% 'PSF - o+: o +%,%$#% :%-#+% +$> +o: -)% t to ?%%)%$% o+ -)% )#+)o-%! 4: T% )%tto$%+Y- )%+%)to$- +%& $ t% Co#+tY- ,%& $ot#t% o++%t!


20/51

To +%-- t- +t :->,$> $ t% )o-to$ o t% )%tto$%+ o$ t%-% --#%-& t% Co#+t+%- t- o$> $ ?!'on*e . Ene" Reu!*o" o!", e* !! 4? @

T% o+%>o$> +>#:%$t- -#>>%-t t% )+%-%$% o :-o$%)to$- ?o#t t% $t#+%$ #$to$- o t% 'PSF! T% 'PSF - T+#-t Ao#$t - %-t?-% o+t% )#+)o-% o :$:$> t% +%#%$t )+% $>%- ?+o#>t ?o#t ? %$>%+t% @#-t:%$t $o+ $>%- $ o+ :+B%t )+%- o +#% o $ :)o+t%)%t+o%#: )+o#t-! 4; U$%+ P!D! No! 1956& - :%$% ? E%#t,% '+%+ No!137 t% 27 F%?+#+ 1987& t- T+#-t Ao#$t : ?% #$% +o: $ o t%oo$> -o#+%-J

=n n#"e!e n *$e *!/ #oe#*on "o' ! !o"e' *!/ o" #u*o' u* 'oe on e*"oeu' "ou#* -#?@%t to t #$%+ t- D%+%% !"n "o' e/#$!ne "!*e !:u*'en* & - : ?%%t%+:$% ? t% M$-t%+ o F$$% $ o$-#tto$ t t% =o+ o E$%+>

? =n n#"e!e n *$e *!/ #oe#*on ! ! "eu* o *$e *n o *!/ e/e'*on o oe"n'en*#o"o"!*on& - : ?% %t%+:$% ? t% M$-t%+ o F$$% $ o$-#tto$ t t% =o+ oE$%+>J

=n !*on! !'oun* *o e 'oe on e*"oeu' "ou#* to #>:%$t t% +%-o#+%- o t%F#$ t+o#> $ ))+o)+t% '+%+ tt : ?% --#% ? t% =o+ o E$%+> +%#+$> ):%$to )%+-o$- o+ o:)$%- %$>>% $ t% ?#-$%-- o :)o+t$>& :$#t#+$> $o+ :+B%t$>)%t+o%#: )+o#t-

=n "eu*n eo #o* ;e"en*! $ -% t% t# )%-o o-t- ) ? o o:)$%- $ t%:)o+tto$ o +#% o $ )%t+o%#: )+o#t- - %-- t$ t% )%-o o-t- o:)#t% #-$> t%+%%+%$% o+%>$ %$>% +t% - % ? t% =o+ o E$%+>

T% t tt t% o+ :+B%t )+%- o o& :%-#+% ? t% -)ot :+B%t $ Rott%+:&,+ +o: to - o @# $ot%! F+%>t +t%- o+ #$> +#% o $ )%t+o%#:)+o#t- +o: -o#+%- o -#)) to t% P))$%- : -o ,+ +o: t:% to t:%! T%%$>% +t% o t% )%-o -!- t% U!S! o+ $ ot%+ o$,%+t?% o+%>$ #++%$%- -o$>%- +o: to ! T%-% #t#to$- $ o+ :+B%t )+%- $ $ t$B%+ +t%- $o+%>$ %$>% +t%- o# $ o:)%t% +%% :+B%t t+$-t% $to o++%-)o$$>@#-t:%$t- $ o:%-t )+%- o o $ )%t+o%#: )+o#t- t -:)t%t +%#%$! =#to:%-t )+%- ,+ +o: to o+ %,%$ o$ +o: %%B to %%B o# +%-#t $ ot :+B%t t #$)+%t?% %%t- #)o$ t% o#$t+Y- %o$o: $ >%$%+! T$e OS !e*!$e "e#e *o "o*e#* o#! #onu'e" "o' *$e !e"e #oneuen#e *$!* u#$

"euen* o "#e !:u*'en* '! $!e uon *$e e#ono' ! T$u, *$e OS e"e ! ! o#


21/51

!n e#ono'# u"! !n e-en o *$e #o''un*, *$!* #o'"e$ene oe"en !u*$o"*

e en!*e ! *$e o#e oe" o *$e S*!*e! T% -t?to$& $ -#?- o o:%-t )+%-o )%t+o%#: )+o#t- $ #% o Z %+ +t $ :)o+t$% o$-%+$>& :o$> ot%+t$>-& t% o$t$#$> > %,% o %)%$%$% o t% o#$t+ o$ :)o+t% +#% o Z +%))+o)+t% +%>+% - )#? )#+)o-%-

A-o o +%%,$% - t- Co#+tY- +#$> $ +%to$ to t% -#>+ -t?to$ #$ t% $t#+%o - $ot + %+%$t +o: t% 'PSF! I$ G!*on . Reu# !n*e" !n+ -t?to$ %%- $ %)$% t%+ $t#+% $ +t%+& 7 !J

T% -t?to$ %%- o%t% +% $ t% $t#+% o t& - t$ t% )o%+o t% Stt% to :)o-% o+ t% )+o:oto$ o t% -#>+ $#-t+ (L#t ,! A+$%t& 98P! 148! ! ! ! T$e *!/ #oe#*e no* n ! u"e e/e"#e o *$e *!/n oe" ! I* ee *$ ! "eu!*o" u"oe, *o "oe ! 'e!n o" *$e *!7!*on o *$e

u!" nu*". T$e e "'!" n *$e e/e"#e o *$e o#e oe" o *$e S*!*e

( L#t ,! A+$%t& u"!)!

T% -t?to$ %%- $ #%-to$ +% %,% ? t% Stt% #)o$ -#>+ :%+-)$t%+- $ )+o#%+- o+ -)% )#+)o-% Z tt o $$$> t% >+ot $

%,%o):%$t o t% -#>+ $#-t+ $ t- o:)o$%$t-& -t?to$ o t%o:%-t :+B%t $#$> t% o+%>$ :+B%t! T% t tt t% Stt% - tB%$)o--%--o$ o :o$%- )#+-#$t to - -# t% +% % o+ -)% )#+)o-% (L+%$% ,! A:%+$ S#+%t Co!263 M! 586& 249 ALR 535& t% $ 42 A: "#+ S%! 2& )! 718! ,$> ?%%$ %,%o+ -)% )#+)o-%& t% +%,%$#%- o%t% +% to ?% t+%t% - -)% #$& to?%& $ t% $>#>% o t% -tt#t%& :$-t%+% $ t+#-t o+ t% )#+)o-% $t%$%!'$% t% )#+)o-% - ?%%$ #% o+ ?$o$%& t% ?$% $& - to ?%t+$-%++% to t% >%$%+ #$- o t% Go,%+$:%$t! Tt - t% %--%$% o t% t+#-t$t%$% (SEE 1987 Co$-tt#to$& A+t% VI& S%! 29(3& t% +o: t% 1935

Co$-tt#to$& A+t% VI& S%! 23(1!

4=

T$e #$!"!#*e" o *$e S*!7!*on un ! ! e#! ,%$ t ? E!'! 137! It - -%>+%>t% +o: t% >%$%+

#$ $ % t - )% $ t t% +%%+- to - t+#-t ?t o#$t& t% #$$o$%t%%-- +%:$- -#?@%t to t% -+#t$ $ +%,% o t% C'A! T% Co#+t - -t-% ttt%-% :%-#+%- o:) t t% o$-tt#to$ %-+)to$ o -)% #$! I$%%& t%)+t% - $ot to#t )+%%%$t!

t +%>+ to t% %>% unue ee!*on o e!*e oe" & t% Co#+t $- tt t%)+o,-o$ o$%++$> t% #to+t #)o$ t% ER= to :)o-% to$ :o#$t- o$ )%t+o%#:)+o#t- )+o,%- -#%$%+ )o o t% to )+ot%t t% o o$-#:%+ ? -t?$> $ -#?-$>


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o:%-t )#:) +t%-& \ 8( o P!D! 1956 4 %)+%-- #to+%- t% ER= to :)o-% to$:o#$t- *o !u'en* *$e "eou"#e o *$e un!

t )%tto$%+ o# - - t% $> o -o:% %$t%& #$ttt,% +%-t+to$& o+ -)% :t o$ o :# to t! 49 T% Co#+t - t% to t- +%#+%:%$t ? t% )%tto$%+ o$t% )+%:-% tt t - $,o,% %+% - t% )o%+ o tto$ ?#t - +% -#--%& t- -$ot t% -%! t - %+% $,o,% - $ot -o :# t% )o%+ o tto$ - )o% )o%+!Ato#> t% )+o,-o$ #to+$> t% ER= to :)o-% to$ :o#$t- o# ?% o$-t+#% to+%%+ to t% )o%+ o tto$& t $$ot ?% o,%+ooB% tt t% o,%++$> o$-%+to$ - to%$?% t% %%>t% to t t %)%%$ $ ++$> o#t t% o?@%t,%- o t% +%%:?+% ? t% )o% )o%+ o t% Stt%!

T% $t%+) $ o$-t$t #t#to$ o t% ,+o#- to+- $,o,% $ t% %t%+:$to$o t% )+% o o $ )%t+o%#: )+o#t-& $ t% +%#%$t -t$> $%% to %t%+ #>:%$t o+%#-t t% F#$& o $ot o$,%$%$t )%+:t t% -%tt$> o % o+ +> )+:%t%+- $ t% - )+o)o-% ? t% )%tto$%+! To o -o o# +%$%+ t% ER= #$?% to +%-)o$ %%t,% -o -to :t>t% o+ ,o t% #$%-+?% o$-%#%$%- o -# #t! A- -#& t% -t$+ - t -%)+%--%& -##% t% %%>t% $ t% %%+-% o t% %%>t% )o%+& tB$> o#$t

o t% +#:-t$%- #$%+ t - to ?% %%+-%!

Fo+ , %%>to$ o )o%+& t - %--%$t tt t% %%>t$> t% )o%+ :#-t ?% (1o:)%t% $ t-%& tt - t :#-t -%t o+t t% )o to ?% %%#t% ? t% %%>t% $ (2 t:#-t -t$+ Z :t- o +% -#t% :#-t o$o+:! 2>

! ! ! A- )o$t% o#t $ E# ,! E+tJ To ,o t% t$t o #$# %%>to$& t%+%:#-t ?% -t$+& :)%- t t% ,%+ %-t tt t% %>-t#+% t-%%t%+:$%- :tt%+- o )+$)% $ - o$ #$:%$t )o! 't%+-%& t%+>% o o:)%t% ?to$ : ?% + to +%)%! A -t$+ t#- %$%-%>-t,% )o& :+B- t- :t-& :)- o#t t- ?o#$+%- $ -)%%- t% )#?>%$ to )) t! It $t%- t% +#:-t$%- #$%+ t% %>-t,%o::$ - to ?% %%t%! It - t% +t%+o$ ? t% %>-t,% )#+)o-% :?% ++% o#t! T%+%t%+& t% %%#t,% o+ :$-t+t,% o$t% : $)#+-#$% o t% ?o,% >#%$%- )+o:#>t% -#))%:%$t +#%- $ +%>#to$-!

T% -t$+ : %t%+ ?% %)+%-- o+ :)%! I t% o+:%+& t% $o$;%%>to$o?@%to$ - %- :%t! T% -t$+ to#> o%- $ot ,% to ?% -)%% o#t-)%! It o# ?% :)% +o: t% )o $ )#+)o-% o t% t o$-%+% - o%! 24

It o# -%%: tt +o: t% ?o,%;#ot% +#$>& t% )%tto$ o+ )+o?to$ -o# !

T% -t$+& - t% Co#+t - +% -tt%& : %,%$ ?% :)%! I$ tt >t& t%+%$ ?% $o >+o#$ #)o$ to -#-t$ t% )%tto$& $-:# - t% %$>% -%t- o+t %t%+:$?% -t$+ >#%- t% %%+-% o t% )o%+ >+$t% to t% ER=! = t% -:%toB%$& t% )+o)%+ %%+-% o t% %%>t% )o%+ : ?% t%-t% t %-%! It -%%:- o?,o#-tt t t% $t%$% - to )%+:t t% to$ :)o-t- o+ - o$> - t%+% %-t- $%% to )+ot%t t% >%$%+ )#? $ t% )%t+o%#: $#-t+ +o: t% ,%+-% o$-%#%$%- o)#:) +t% #t#to$-! %+% t% -t$+- -%t #) o+ t% >#$% o $ :$-t+t,% o


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o#+t- $ t% )#? +% --#+% tt t% o+%+- $ t% @#>:%$t o -# o-t,% -t$+& t%+% - $o #+% $ t% )%+o+:$% o t% %>-t,% #$to$-! 22

T- Co#+t t#- $- $o -%+o#- :)%:%$t to -#-t$$> t% ,t o t% %>-to$t% %)+%-- )#+)o-% o+ t% :)o-t- +% )%+:tt% $ t% >%$%+ o?@%t,%- $)#+)o-%- o t% #$ +% +% -%+$?%& $ t% o$-tt#t% -#to$ o )o%+ : ?% @#-t%!

I$ +%to$ to t% t+ #%-to$ Z +%-)%t$> t% %>t o t% +%:?#+-%:%$t- to oo:)$%-& ) o#t o t% ' P+% St?to$ F#$& ?%#-% %>% $ o$t+,%$to$ o \ 8&)+>+) 2 (2 o P!D! 1956& :%$% 2: Z t% Co#+t $- o+ t% )%tto$%+!

T% )%tto$ --- t% ):%$t o %+t$ t%:- o+ o#$t- $ ,o+ o t% )%t+o%#:o:)$%- (.e!& $,%$to+ o--%-& $$$> +>%-& #% o -%- to t% Nto$ Po%+Co+)o+to$& %t! ?%#-% $ot #to+% ? ! P%tto$%+ o$t%$- tt t%-% :- +% $ot%:?+% $ t% %$#:%+to$ $ \ 8 o P!D! 1956 ! ! -$% $o$% o t%: - $#++% ! ! "eu*o *$e "eu#*on o o'e*# "#e o e*"oeu' "ou#*&Y 2? $ -$% t%-% t%:- +%+%:?#+-%:%$t- o+ t% 'PSF -o# $ot ,% +%-)o$%& t% :o#$t o t% P12!877

?o$ %t -o# ?% +%#% ? P5&277!2 :o$! 2; It - +>#% tt #$%+ t% )+$)% oe:ue' ene" ! ! ! t% t%+: Yot%+ to+-Y (- #-% $ \ 8 o P!D! 1956 ! ! $ o$ $#% -#Yot%+ to+-Y $%%--+ +%-#t $ t% +%#to$ o o:%-t )+%- o )%t+o%#:)+o#t-! 2<

T% Soto+ G%$%+& o+ - )+t& o$t%$- tt (to )% - (t%+: t$ t% +%-t+t,%o$$%- o t% +#% o e:ue' ene" o# +%#% (E!'! 137 to :%$$>%-- )+o,-o$!

T- Co#+t& $ C!*e/ $ne, In#. . T$e Dono"!e Co''one" on =u*, e* !. & 2=

)--% #)o$ t% ))to$ o e:ue' ene" to )+>+) 2 o \ 8 o P!D! 1956& 7 !J

T% +#% o e:ue' ene" -tt%- tt %+% o+- oo $ %$#:%+to$ o)%+-o$- o+ t$>-& ? o+- o )+t#+ $ -)% :%$$>& -# >%$%+o+- +% $ot to ?% o$-t+#% $ t%+ %-t %t%$t& ?#t +% % to ?% - ))$>o$ to )%+-o$- o+ t$>- o t% -:% B$ o+ -- - to-% -)% :%$to$%!2 A +%$> o -#?)+>+)- ( $ ( %- -o-%- tt t% o $ot ,% o::o$ +t%+-t! T% +-t +%t%- to )+% +%#to$ - +%t% ? t% =o+o E$%+> % t% -%o$ +%%+- to +%#to$ $ $t%+$ ! !o"e' t%-

T%+%o+%& -#?)+>+) ( $$ot ?% :t% ? t% %$#:%+to$ $ t%-%-#?)+>+)-! t -o# ?% o$-%+% o+ )#+)o-%- o %t%+:$$> t% ot%+to+- $ -#?)+>+) ( - t% +-t -%$t%$% o )+>+) (2 o t% S%to$

%)t o- t% o-t #$%++%o,%+ o$ -# %+% $#++% - "eu*o *$e "eu#*on o o'e*# "#e o e*"oeu' "ou#*!

T% Co#+t t#- o-& tt t% +%:?#+-%:%$t o $$$> +>%- - $ot #to+% ?)+>+) 2 o \ 8 o P!D! 1956& o+ t% +%-o$ tt t% %+% $ot $#++% - +%-#t o t%+%#to$ o o:%-t )+%- o )%t+o%#: )+o#t-! U$%+ t% -:% )+o,-o$& o%,%+& t%):%$t o $,%$to+ o--%- - #)% - ,& ?%$> %+ +%-#t o o:%-t )+% +%#to$&%$ o o:)$%- $#+ o-t #$%++%o,%+ o+ %t #$-o -toB- o o $ $,%$to+ #+%t >%+ )+%!


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R%:?#+-%:%$t o+ o-t #$%++%o,%+ +o: t% -%- o o to t% Nto$ Po%+Co+)o+to$ - %# )%+:--?%& $ot - o:$> t$ t% )+o,-o$- o P!D! 1956& ?#t $ ,+t#%o ot%+ - $ +%>#to$- - % $ C!*e/ 29 $ ,% ?%%$ )o$t% to ? t% Soto+G%$%+! At $ +t%& o#?t- ?o#t t% )+o)+%t o -# +%:?#+-%:%$t- ,% ?%%$ -)%% ?t% %$t:%$t o R!A! 6952& %-t?-$> t% P%t+o%#: P+% St$? F#$& \ 2 o -)% #to+%- t% +%:?#+-%:%$t o o-t #$%++%o,%+ $#++% - +%-#t o #% o-%- to t% Nto$ Po%+ Co+)o+to$!

A$%$t t% o,%+):%$t +%#$- :%$to$% ? t% )%tto$%+& $o -#?-t$t,% -#--o$- ?%%$ )+%-%$t% to -o o t- - )+o?t% ? P!D! 1956! No+ - t% Soto+ G%$%+tB%$ $ %o+t to %%$ t% )+o)+%t o t- +%#$! I$ $%& $%t%+ o t% )+t%-& ?%o$ t%:%+% :%$to$ o o,%+):%$t +%#$-& - t ?ot%+% to -#-- t% +>#:%$t- o+ o+>$-t t% %>t o t% -o;% o,%+):%$t +%#$-! To ?% -#+%& t% ?-%$% o $+>#:%$t o+ o+ >$-t t% ,t o t% +%#$ $$ot +%-#t $ t- -o$% ? t% Co#+t!U$%-- t% :)+o)+%t o+ %>t o t% o,%+):%$t +%#$ - ?%%$ %+ $ -)%-o$& t%+% $ ?% $o ?-- #)o$ to $# t% -:%!

F$& t% Co#+t $- $o $%%--t to +#% o$ t% +%:$$> --#%& t% -:% ,$> ?%%$

+%$%+% :oot $ %:! A- o t% %+%o& t% )#:) +t%- o >-o$% ,% ?%%$ +%#%to %,%- ?%o %,%$ to-% )+% o+ $ t% )%tto$!

EREF'RE& t% )%tto$ - GRANTED $-o+ - t )+- o+ t% $#to$ o t%+%:?#+-%:%$t o $$$> +>%-& ) )#+-#$t to E!'! 137& $ DISMISSED $ ot%++%-)%t-!

S' 'RDERED!

CASE DIGEST6

'SME[A ,! 'R='S& 220 SCRA 703

Facts6 '$ 'to?%+ 10& 1984& P+%-! M+o- --#% P!D! 1956 +%t$> S)% Ao#$t $ t%G%$%+ F#$& %->$t% - t% ' P+% St?to$ F#$ ('PSF! T% 'PSF - %->$% to+%:?#+-% o o:)$%- o+ o-t $+%-%- $ +#% o $ :)o+t% )%t+o%#: )+o#t-+%-#t$> +o: %$>% +t% @#-t:%$t- $ +o: $+%-%- $ t% o+ :+B%t )+%- o +#%o!

S#?-%#%$t& t% 'PSF - +%--% $to t+#-t ?t o#$t& $ ,+t#% o E!'!1024& $ o+%+% +%%-% +o: t% Nto$ T+%-#+ to t% M$-t+ o E$%+>!

P+%-! A#$o& :%$% P!D! 1956! S% )+o:#>t% E%#t,% '+%+ No! 137 o$ F%?+#+27& 1987& %)$$> t% >+o#$- o+ +%:?#+-%:%$t to o o:)$%- o+ )o--?% o-t #$%++%o,%+ $#++% - +%-#t o t% +%#to$ o o:%-t )+%- o )%t+o%#: )+o#t-& t%:o#$t o t% #$%+ +%o,%+ ?%$> %t o+ %t%+:$to$ ? t% M$-t+ o F$$%

T% )%tto$ ,%+- tt t% +%to$ o t% t+#-t #$ ,ot%- 29(3& A+t% VI o t%Co$-tt#to$& +%$> - oo-

(3 A :o$% o%t% o$ $ %,% o+ -)% )#+)o-% - ?% t+%t% - -)%#$ $ ) o#t o+ -# )#+)o-%- o$! I t% )#+)o-% t o+ -)% #$ - +%t%- ?%%$ #% o+ ?$o$%& t% ?$%& $& - ?% t+$-%++% to t% >%$%+ #$- ot% Go,%+$:%$t


25/51

] T% )%tto$%+ +>#%- tt t% :o$%- o%t% )#+-#$t to ! ! P!D! 1956& - :%$%&:#-t ?% t+%t% - YSPECIAL FUND&Y $ot - Yt+#-t o#$tY o+ Yt+#-t #$&Y $ tt -)% t - o%t% o+ -)% )#+)o-%& t% +%,%$#% >%$%+t% t%+%+o: - Y?% t+%t%- -)% #$Y to ?% #-% o$ o+ t% )#+)o-% $t%& $ $ot $$%% to $ot%+>o,%+$:%$t o?@%t,%! P%tto$%+ #+t%+ )o$t- o#t tt -$% Y-)% #$Y o$--t- o:o$%- o%t% t+o#> t% t$> )o%+ o Stt%& -# :o#$t- ?%o$> to t% Stt%&to#> t% #-% t%+%o - :t% to t% -)% )#+)o-%o?@%t,% o+ t - +%t%!

% -o o$t%$- tt t% %%>to$ o %>-t,% #to+t to t% ER= ,ot%- 28 (2!A+t% VI o t% Co$-tt#to$& ,!

(2 T% Co$>+%-- :& ? & #to+% t% P+%-%$t to & t$ -)%% :t-& $ -#?@%tto -# :tto$- $ +%-t+to$- - t : :)o-%& t+ +t%-& :)o+t $ %)o+t #ot-&to$$>% $ +>% #%-& $ ot%+ #t%- o+ :)o-t- t$ t% +:%o+B o t% $to$%,%o):%$t )+o>+: o t% Go,%+$:%$t$& $-:# - t% %%>to$ +%t%- to t% %%+-% o t% )o%+ o tto$& t% :t-&:tto$- $ +%-t+to$- :#-t ?% #$ttt,%& tt -& t% :#-t $ot o$ -)% o tot& o (- ?% t% ($ t t% t - o+& ?#t -o :)o-% -)% :t o$ o :#to t!X

Issues6(1 %t%+ o+ Not t% $,t o t% TRUST ACC'UNT $ t% ?ooB- o o#$t o t% M$-t+o E$%+> ($o& t% ' A+-& +%t% )#+-#$t to \ 8& )+>+) 1& o P!D! No!1956& - :%$%& - +%to$ o t+#-t #$ ?%$> o$t++ to S%to$ 29 (3& A+t% VI o t%Co$-tt#to$!(2 %t%+ o+ Not t% #$o$-tt#to$t o 8& )+>+) 1 ( o P!D! No! 1956& - :%$% ?E%#t,% '+%+ No! 137& o+ ?%$> $ #$#% $ $, %%>to$ o %>-t,% )o%+ to t%E$%+> R%>#to+ =o+Rulig6 T% 'PSF - T+#-t Ao#$t - %-t?-% o+ t% )#+)o-% o :$:$> t%+%#%$t )+% $>%- ?+o#>t ?o#t ? %$>% +t% @#-t:%$t $o+ $>%- $ o+

:+B%t )+%- o +#% o $ :)o+t% )%t+o%#: )+o#t-! U$%+ P!D! No! 1956& - :%$%? E%#t,% '+%+ No! 137 t% 27 F%?+#+ 1987& t- T+#-t Ao#$t : ?% #$% +o: $o t% oo$>J -o#+%- A$ $+%-% $ t% t o%to$ +o: ,o+%: t o+ #-to:- #t :)o-% o$ )%t+o%#:)+o#t- -#?@%t to t #$%+ t- D%+%% +-$> +o: %$>% +t% @#-t:%$t& - : ?%%t%+:$% ? t% M$-t%+ o F$$% $ o$-#tto$ t t% =o+ o E$%+>? A$ $+%-% $ t% t o%to$ - +%-#t o t% t$> o t %%:)to$- o >o,%+$:%$to+)o+to$-& - : ?% %t%+:$% ? t% M$-t%+ o F$$% $ o$-#tto$ t t% =o+ oE$%+> A$ to$ :o#$t to ?% :)o-% o$ )%t+o%#: )+o#t- to #>:%$t t% +%-o#+%- o t%F#$ t+o#> $ ))+o)+t% '+%+ tt : ?% --#% ? t% =o+ o E$%+> +%#+$> ):%$t

o )%+-o$- o+ o:)$%- %$>>% $ t% ?#-$%-- o :)o+t$>& :$#t#+$> $o+ :+B%t$>)%t+o%#: )+o#t- A$ +%-#t$> )%-o o-t %+%$t- $ -% t% t# )%-o o-t- ) ? o o:)$%- $ t%:)o+tto$ o +#% o $ )%t+o%#: )+o#t- - %-- t$ t% )%-o o-t- o:)#t% #-$> t%+%%+%$% o+%>$ %$>% +t% - % ? t% =o+ o E$%+>

%$%& t -%%:- %+ tt % t% #$- o%t% : ?% +%%++% to - t%-& t% +%%t% $ t% %%+-% o t% )o% )o%+ o t% Stt%! Mo+%o,%+& tt t% 'PSF - -)%#$ - )$ +o: t% -)% t+%t:%$t >,%$ t ? E!'! 137! It - -%>+%>t% +o: t% >%$%+#$ $ % t - )% $ t t% +%%+- to - t+#-t ?t o#$t& t% #$$o$%t%%-- +%:$- -#?@%t to t% -+#t$ $ +%,% o t% C'A! T% Co#+t - -t-% tt


26/51

t%-% :%-#+%- o:) t t% o$-tt#to$ %-+)to$ o -)% #$! I$%%& t%)+t% - $ot to#t )+%%%$t

t +%>+ to t% %>% #$#% %%>to$ o %>-t,% )o%+& t% Co#+t $- tt t%)+o,-o$ o$%++$> t% #to+t #)o$ t% ER= to :)o-% to$ :o#$t- o$ )%t+o%#:)+o#t- )+o,%- -#%$%+ )o o t% to )+ot%t t% o o$-#:%+ ? -t?$> $ -#?-$>o:%-t )#:) +t%-& \ 8( o P!D! 1956 %)+%-- #to+%- t% ER= to :)o-% to$:o#$t- to #>:%$t t% +%-o#+%- o t% F#$

t )%tto$%+ o# - - t% $> o -o:% %$t%& #$ttt,% +%-t+to$& o+ -)% :t o$ o :# to t! T% Co#+t - t% to t- +%#+%:%$t ? t% )%tto$%+ o$ t%)+%:-% tt t - $,o,% %+% - t% )o%+ o tto$ ?#t - +% -#--%& t- - $ott% -%! t - %+% $,o,% - $ot -o :# t% )o%+ o tto$ - )o% )o%+! Ato#>t% )+o,-o$ #to+$> t% ER= to :)o-% to$ :o#$t- o# ?% o$-t+#% to +%%+ tot% )o%+ o tto$& t $$ot ?% o,%+ooB% tt t% o,%++$> o$-%+to$ - to %$?% t%%%>t% to t t %)%%$ $ ++$> o#t t% o?@%t,%- o t% +% %:?+% ?t% )o% )o%+ o t% Stt%

T% $t%+) $ o$-t$t #t#to$ o t% ,+o#- to+- $,o,% $ t% %t%+:$to$o t% )+% o o $ )%t+o%#: )+o#t-& $ t% +%#%$t -t$> $%% to %t%+ #>:%$t o+

%#-t t% F#$& o $ot o$,%$%$t )%+:t t% -%tt$> o % o+ +> )+:%t%+- $ t% - )+o)o-% ? t% )%tto$%+! To o -o o# +%$%+ t% ER= #$?% to +%-)o$ %%t,% -o -to :t>t% o+ ,o t% #$%-+?% o$-%#%$%- o -# #t! A- -#& t% -t$+ - t -%)+%--% -##% t% %%>t% $ t% %%+-% o t% %%>t% )o%+& tB$> o#$to t% +#:-t$%- #$%+ t - to ?% %%+-%!

325 Agli0a( %s. Rui' (G.R. No. 45459, !"#$ 13, 193%)

(G!R! No! L;45459 M+ 13& 1937

GREG'RI' AGLIPA& )%tto$%+& ,-! "UAN RUI/& +%-)o$%$t!?#en*e So**o o" e**one".

OH#e o *$e So#*o"-Gene"! Tu!on o" "eonen*.

#AURE#! J.:

T% )%tto$%+& Mo$-! G+%>o+o A>)& S#)+%:% % o t% P))$% I$%)%$%$t C#+-%%B- t% --#$% +o: t- o#+t o +t o )+o?to$ to )+%,%$t t% +%-)o$%$t D+%to+ oPo-t- +o: --#$> $ -%$> )o-t>% -t:)- o::%:o+t,% o t% T+t;t+ I$t%+$to$E#+-t Co$>+%--!

I$ M& 1936& t% D+%to+ o Po-t- $$o#$% $ t% %- o M$ tt % o# o+%+ t%--#%- o )o-t>% -t:)- o::%:o+t$> t% %%?+to$ $ t% Ct o M$ o t% T+t;t+$t%+$to$ E#+-t Co$>+%--& o+>$% ? t% Ro:$ Cto C#+! T% )%tto$%+& $t% #:%$t o t % o$-%+- to ?% , #t& +%#%-t% V%$t% Sotto& E-!& :%:?%+ ot% P))$% =+& to %$o#$% t% :tt%+ to t% P+%-%$t o t% P))$%-! I$ -)t% o t%)+ot%-t o t% )%tto$%+Y- tto+$%& t% +%-)o$%$t )#? $$o#$% ,$> -%$t to t% U$t%Stt%- t% %->$- o t% )o-t>% -t:)- o+ )+$t$> - oo-J

I$ t% %$t%+ - %& t >+)% ,$% $ -tB- o %t - ?o+%+ %->$! T% -t:)- +%?#%& >+%%$& ?+o$& +$ +%& ,o%t $ o+$>%& 1 $ ? 1&094 $%-! T% %$o:$to$-+% o+ 2& 6& 16& 20& 36 $ 50 %$t,o-! T% - -t:)- %+% t# --#% $ -o to#>t% >+%t%+ )+t t%+%o& to t- & +%:$- #$-o! T% #+t%+ -% o t% -t:)- - -o#>t to?% )+%,%$t% ? t% )%tto$%+ %+%$!


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T% Soto+;G%$%+ o$t%$- tt t% +t o )+o?to$ - $ot t% )+o)%+ %> +%:% $ t%$-t$t -%& to#> % :t- tt t% +t : )+o)%+ +%-t+$ :$-t%+ #$to$-! %&>%$%+& )+o?to$ - $ %t+o+$+ %> +t $ot --#% to +%-t+$ o+ o$t+o t%)%+o+:$% o ot%+ t$ @# o+ #-;@# #$to$- (50 C! "!& 6580& t- --#$% $%$o+%:%$t +% +%>#t% ? -tt#t% $ $ t- @#+-to$ : --#% to ! ! ! $%+o+ t+?#$-&o+)o+to$-& ?o+-& o+ )%+-o$-& %t%+ %%+-$> #$to$- @# o+ :$-t%+& +%to#t o+ $ %%-- o t% @#+-to$ o -# t+?#$& o+)o+to$& ?o+& o+ )%+-o$& ! ! ! !(S%-! 516 $ 226& Co% o C, P+o%#+%! T% t%+:- @# $ :$-t%+ #-% t+%%+%$% to #$to$- $ t% -tt#t% +% #$o#?t% o:)+%%$-,% $ $#% t%%$>% t o t% +%-)o$%$t D+%to+ o Po-t- $ t% )+%-%$t -%& t ?%#-% %>%to ?% ,ot,% o t% Co$-tt#to$ - ! o"*o"!" to#t o+ $ %%-- o ! ! ! @#+-to$! T%-tt#to+ +#%& t%+%o+%& $ t% @#+-to$ - tt t% +t o )+o?to$ - $ot o$$%%#-,% to o#+t- o+ t+?#$- to B%%) t%: t$ t% :t- o t%+ o$ @#+-to$ $ to)+%,%$t t%: +o: %$+o$> #)o$ t% @#+-to$ o ot%+ t+?#$-& ?#t --#%& $))+o)+t% -%-& to $ o+$t%& %+% t - $%%--+ o+ t% o+%+ :$-t+to$ o @#-t%&o+ to )+%,%$t t% #-% o t% -t+o$> +: o t% $ $ o))+%--,% o+ ,$t,% :$$%+& o+ :#t)t o to$-! (D:#> $ F@+o ,-! F%+$$% 1923& 43 P!& 304& 307!

T% :o+% :)o+t$t #%-to$ +-% +%%+- to t% %>% ,oto$ o t% Co$-tt#to$ ? t%

+%-)o$%$t $ --#$> $ -%$> )o-t>% -t:)- o::%:o+t,% o t% T+t;t+I$t%+$to$ E#+-t Co$>+%--! It - %>% tt t- to$ o t% +%-)o$%$t - ,ot,% ot% )+o,-o$- o -%to$ 23& -#?-%to$ 3& A+t% VI& o t% Co$-tt#to$ o t% P))$%-& )+o,%- - oo-J

No )#? :o$% o+ )+o)%+t - %,%+ ?% ))+o)+t%& ))%& o+ #-%& +%t o+$+%t& o+ t% #-%& ?%$%t& o+ -#))o+t o $ -%t& #+& %$o:$to$& -%+%t+$&$-tt#to$& o+ --t%: o +%>o$& o+ o+ t% #-%& ?%$%t& o+ -#))o+t o $ )+%-t& )+%%+&:$-t%+& o+ ot%+ +%>o#- t%%+ o+ >$t+ - -#& %%)t %$ -# )+%-t&)+%%+& :$-t%+& o+ >$t+ - -->$% to t% +:% o+%- o+ to $ )%$ $-tt#to$&o+)$>%& o+ %)+o-+#:!

T% )+o?to$ %+%$ %)+%--% - +%t o+o+ o t% )+$)% o -%)+to$ o #+ $-tt%! to#t t% $%%--t o ,%+t$> to t% -to+ ?B>+o#$ o t- )+$)% $ o#+o#$t+& t - -#t#- tt t% #$o$ o #+ $ -tt% - )+%@# to ?ot& o+ o--o$- :>t +-% %$ t%%-tt% #-% t% #+& $ t% #+ t% -tt%& - %)o$ $ t% #+t%+$% o t%++%o>$% t- )+$)% o -%)+to$ o #+ $ -tt% $ t% %+ -t>%- o o#+o$-tt#to$ %,%o):%$t t - $-%+t% $ t% T+%t o P+- ?%t%%$ t% U$t% Stt%- $S)$ o D%%:?%+ 10& 1898& +%t%+t% $ P+%-%$t M^$%Y- I$-t+#to$- o t% P))$%Co::--o$& +%#-t 29&1916& $ $ %:?o% $ t% o$-tt#to$ o t% P))$%- - t% -#)+%:% %)+%--o$ ot% F)$o )%o)%! It - :o-t t+t% to - $o tt $ t- o#$t+ % %$@o ?ot +%>o#- $, +%%o:! A t% o%-t to t% o%-t& $ tB$> t%+

ot to -#))o+t $ %%$ t% o$-tt#to$& ?$ t%:-%,%- to +%o>$% $ +%-)%t t%o$-tt#to$ >#+$t%% o +%>o#- +%%o:& t t- $%+%$t :tto$- $ +%o>$%:)to$-! It -o# ?% -tt% tt t - >#+$t%% ? o#+ Co$-tt#to$ - +%>o#- ?%+t&$ot :%+% +%>o#- to%+to$!

R%>o#- +%%o:& o%,%+& - o$-tt#to$ :$t% - $ot $?to$ o )+oo#$ +%,%+%$%o+ +%>o$ $ - $ot %$ o t- $#%$% $ #:$ +-! R%>o$ - )+o%--o$ o t to$ t,% )o%+ tt ?$- $ %%,t%- :$ to - C+%to+ - +%o>$%! A$& $ -o + - t$-t- $to t% :$- t% )#+%-t )+$)%- o :o+t& t- $#%$% - %%) %t $ >))+%t%! %$ t% F)$o )%o)%& $ t% )+%:?% o t%+ Co$-tt#to$& :)o+% t% o ne "oen#e& $ o+%+ to %-t?- >o,%+$:%$t tt - %:?o t%+ %-& o$-%+,%


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$ %,%o) t% )t+:o$ o t% $to$& )+o:ot% t% >%$%+ %+%& $ -%#+% to t%:-%,%-$ t%+ )o-t%+t t% ?%--$>- o $%)%$%$% #$%+ +%>:% o @#-t%& ?%+t $%:o+& t% t%+%? :$%-t% +%$% #)o$ : o >#%- t% %-t$%- o :%$ $$to$-! T% %%,t$> $#%$% o +%>o$ $ #:$ -o%t - +%o>$% %+% - %-%%+%! I$t& %+t$ >%$%+ o$%--o$- +% $-+:$t% o+% to +%>o#- -%t- $%$o:$to$-! '#+ Co$-tt#to$ $ - %%:)t +o: tto$ )+o)%+t%- %,ot% %#-,%to +%>o#- )#+)o-%- (-%! 14& -#?-%! 3& A+t! VI& Co$-tt#to$ o t% P))$%- $ -%! 1&-#?-%! 4& '+$$% ))%$% t%+%to A--%--:%$t L& -%! 344& )+! #! A:! Co%S%t+$ - $ot )+o?t% %$ )+%-t& )+%%+& :$-t%+ o+ ot%+ +%>o#- t%%+ o+>$t+ - -# - -->$% to t% +:% o+%- o+ to $ )%$ $-tt#to$& o+)$>% o+%)+o-+#: 9 -%! 13& -#?-%! 3& A+t! VI& Co$-tt#to$ o t% P))$%-! ')to$ +%>o#-$-t+#to$ $ t% )#? -oo- - ? o$-tt#to$ :$t% o% (-%! 5& A+t! KIII&Co$-tt#to$ o t% P))$%-& $ +%to$ to -%! 928& A:! Co%! T#+- $ F+ o o%%B& T$B->,$> D& C+-t:- D& $ S#$- $ :% %> o- (-%! 29& A:Co% ?%#-% o t% -%#+ % tt t%+ o?-%+,$% - o$#-,% to ?%$% :o+ +%-#t-!

T% o- ,o+% ?#t )#$-%- )o>: $ ?>: $ %+t$ +:%- >$-t +%>o#-o+-) +% o$-%+% +:%- >$-t t% #$:%$t - o t% -tt% (ee +t-! 132 $ 133R%,-% P%$ Co%!

I$ t% -% t ?+& t ))%+- tt t% +%-)o$%$t D+%to+ o Po-t- --#% t% )o-t>%-t:)- $ #%-to$ #$%+ t% )+o,-o$- o At No! 4052 o t% P))$% L%>-t#+%! T- At -- oo-J

No! 4052! Z AN ACT APPR'PRIATING TE SUM 'F SIKT T'USAND PES'S AND MA^ING TE SAME AVAILA=LE 'UT 'F AN FUNDS IN TE INSULAR TREASUR N'T 'TERISEAPPR'PRIATED F'R TE C'ST 'F PLATES AND PRINTING 'F P'STAGE STAMPS IT NEDESIGNS& AND F'R 'TER PURP'SES!e * en!#*e *$e Sen!*e !n Doue o Re"een*!*e o *$e $ne n Le!*u"e!e'e !n *$e !u*$o"* o *$e !'eJ

SECTI'N 1! T% -#: o -t to#-$ )%-o- - %+%? ))+o)+t% $ :% ::%t%,?% o#t o $ #$- $ t% I$-#+ T+%-#+ $ot ot%+-% ))+o)+t%& o+ t% o-t- o)t%- $ )+$t$> o )o-t>% -t:)- t $% %->$-& $ ot%+ %)%$-%- $%$t t%+%to!SEC! 2! T% D+%to+ o Po-t-& t t% ))+o, o t% S%+%t+ o P#? o+B- $Co::#$to$-& - %+%? #to+% to -)o-% o t% o% o+ $ )o+to$ o t% :o#$t%+%$ ))+o)+t% $ t% :$$%+ $t% $ - ot%$ - : ?% %%:% ,$t>%o#- tot% Go,%+$:%$t!SEC! 3! T- :o#$t o+ $ )o+to$ t%+%o $ot ot%+-% %)%$% - $ot +%,%+t to t%

T+%-#+!SEC! 4! T- t - tB% %%t o$ t- ))+o,!A))+o,%& F%?+#+ 21& 1933

It ?% -%%$ tt t% At ))+o)+t%- t% -#: o -t to#-$ )%-o- o+ t% o-t- o)t%- $ )+$t$> o )o-t>% -t:)- t $% %->$- $ ot%+ %)%$-%- $%$t t%+%to&$ #to+%- t% D+%to+ o Po-t-& t t% ))+o, o t% S%+%t+ o P#? o+B- $Co::#$to$-& to -)o-% o t% :o#$t ))+o)+t% $ t% :$$%+ $t% $ - ot%$- : ?% %%:% ,$t>%o#- to t% Go,%+$:%$t! T% )+$t$> $ --#$% o t% )o-t>%-t:)- $ #%-to$ ))%+- to ,% ?%%$ ))+o,% ? #to+t o t% P+%-%$t o t%

P))$%- $ %tt%+ t% S%)t%:?%+ 1& 1936& :% )+t o t% +%-)o$%$tY- :%:o+$#: -E?t A! T% +%-)o$%$t %>%- tt t% Go,%+$:%$t o t% P))$%- o# -#%+ o--%- t% +t )+% o+ - >+$t%! % %-t:t%- t% +%,%$#% to ?% %+,% +o: t% -% o t%)o-t>% -t:)- $ #%-to$ t P1&618&17!10 $ -tt%- tt t%+% -t +%:$ to ?% -o -t:)-o+t P1&402&279!02

At No! 4052 o$t%:)t%- $o +%>o#- )#+)o-% $ ,%! t t >,%- t% D+%to+ o Po-t-- t% -+%to$+ )o%+ to %t%+:$% %$ t% --#$% o -)% )o-t>% -t:)- o# ?%,$t>%o#- to t% Go,%+$:%$t! ' o#+-%& t% )+-% ,$t>%o#- to t% Go,%+$:%$to%- $ot #to+% t% ,oto$ o t% Co$-tt#to$! It o%- $ot #to+% t% ))+o)+to$& #-%o+ ))to$ o )#? :o$% o+ )+o)%+t o+ t% #-%& ?%$%t o+ -#))o+t o )+t#+ -%t o+#+! I$ t% )+%-%$t -%& o%,%+& t% --#$% o t% )o-t>% -t:)- $ #%-to$ ? t%D+%to+ o Po-t- $ t% S%+%t+ o P#? o+B- $ Co::#$to$- - $ot $-)+% ? $


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-%t+$ %$o:$to$! T% -t:)- %+% $ot --#% $ -o o+ t% ?%$%t o t% Ro:$Cto C#+! No+ %+% :o$% %+,% +o: t% -% o t% -t:)- >,%$ to tt #+! '$t% o$t++& t ))%+- +o: t% tt%+ o t% D+%to+ o Po-t- o "#$% 5& 1936& $o+)o+t% o$)>% 2 o t% )%tto$%+Y- o:)$t& tt t% o$ )#+)o-% $ --#$> $ -%$> t% -t:)- -to ,%+t-% t% P))$%- $ tt+t :o+% to#+-t to t- o#$t+! T% o% o $ %,%$t o$-%+% o $t%+$to$ :)o+t$% to >,% )#?t tot% P))$%- $ t- )%o)% (L%tt%+ o t% U$%+-%+%t+ o P#? o+B- $ Co::#$to$-to t% P+%-%$t o t% P))$%-& "#$% 9& 1936 )! 3& )%tto$%+Y- o:)$t! It - ->$$t to$ot% tt t% -t:)- - t# %->$% $ )+$t% (E?t 2& $-t% o -o$> CtoC#+ % - o+>$ )$$%& o$t$- :) o t% P))$%- $ t% oto$ o t%Ct o M$& $ $ $-+)to$ - oo-J S%t KKKIII I$t%+$to$ E#+-t Co$>+%--& F%?!3;7&1937! t - %:)-% - $ot t% E#+-t Co$>+%-- t-% ?#t M$& t% )t o t%P))$%-& - t% e!* o tt o$>+%--! It - o?,o#- tt % t% --#$% $ -% o t%-t:)- $ #%-to$ : ?% - to ?% $-%)+? $B% t $ %,%$t o +%>o#- +t%+&t% +%-#t$> )+o)>$& $& +%%,% ? t% Ro:$ Cto C#+& - $ot t% : $)#+)o-% o t% Go,%+$:%$t! % +% o t% o)$o$ tt t% Go,%+$:%$t -o# $ot ?%%:?+--% $ t- t,t%- -:) ?%#-% o $%$t +%-#t-& :o+% o+ %-- +%>o#- $+t%+& t% )#+)o-% $ ,% - o$% o# %>t:t% ?% #$%+tB%$ ?))+o)+t% %>-to$! T% :$ )#+)o-% -o# $ot ?% +#-t+t% ? t- -#?o+$t% to :%+%$%$t +%-#t- $ot o$t%:)t%! (V% =+% ,-! Ro?%+t-& 175 U! S!& 295 20 S#)! Ct! R%)!&121 44 L! %!& 168!

% +% :# :)+%--% t t% ,%%:%$t ))% o o#$-% o+ t% )%tto$%+ to:$t$ $,ot% t% o:)%t% -%)+to$ o #+ $ -tt% $ #+? $ tt%:)t to $+$>%? $+%to$ o$-tt#to$ $?to$! I$%%& $ t% P))$%-& o$% t% -%$% o +%>o#-$to%+$% $ )+%-+)to$& +% -o# ?% tB%$ tt t t- -t>% o o#+ )ot %,%o):%$t$ot$> - o$% ? t% Go,%+$:%$t o+ t- o -%- o+ ,o+$> )+t#+ +%>o#- -%t o+ $-tt#to$! =#t& #)o$ ,%+-%+o#- +%%to$& %:$to$ o At No! 4052& $ -+#t$ o t% tt%$$> +#:-t$%-& %,% o:% to t% o$#-o$ tt t%+% - ?%%$ $o o$-tt#to$ $+to$ $ t% -% t ?+&At No! 4052 >+$t- t% D+%to+ o Po-t-& t t% ))+o, o t% S%+%t+ o P#? o+B- $Co::#$to$-& -+%to$ to :-#-% )o-t>% -t:)- t $% %->$- - ot%$ - : ?%%%:% ,$t>%o#- to t% Go,%+$:%$t! E,%$ % %+% to --#:% tt t%-% o:%$t $ --#$> $ -%$> t% )o-t>% -t:)- $ #%-to$ -t& t% -% o t%)%tto$%+ o# to tB% $ %>t! =%t%%$ t% %%+-% o )oo+ @#>:%$t $ t%#$o$-tt#to$t o t% -t%) tB%$& >) %-t- - %t to ?% % to @#-t t% o#+t $-%tt$> -% t% o t$ o$-tt#to$ $?to$!

T% )%tto$ o+ +t o )+o?to$ - %+%? %$%& to#t )+o$o#$%:%$t - to o-t-! Soo+%+%!

=!n#e!, C.J., ?!-Re!, =! S!n*o, I'e"!, !7 !n Con#e#on, JJ., #on#u".

CASE DIGEST6

A>) ,-! R#Facts61! I$ M 1936& t% D+%to+ o Po-t- $$o#$% $ t% %- o M$ tt % o# o+%+ t%--#$% o )o-t>% -t:)- o::%:o+t$> t% %%?+to$ $ t% Ct o M$ o t% 33+I$t%+$to$ E#+-t Co$>+%--& o+>$% ? t% Ro:$ Cto C#+!

2! T% )%tto$%+& Mo$-! G+%>o+o A>)& S#)+%:% % o t% P))$% I$%)%$%$t C#+&$ t% #:%$t o t % o$-%+- to ?% , #t& +%#%-t% V%$t% Sotto& :%:?%+ ot% P))$% =+& to %$o#$% t% :tt%+ to t% P+%-%$t! I$ -)t% o t% )+ot%-t o t%)%tto$%+- tto+$%& t% D+%to+ o Po-t- )#? $$o#$% ,$> -%$t to t% U$t% Stt%-


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t% %->$- o t% )o-t>% o+ )+$t$>! T% - -t:)- %+% t# --#% $ -o to#> t%>+%t%+ )+t +%:$% #$-o!

3! T% #+t%+ -% - -o#>t to ?% )+%,%$t% ? t% )%tto$%+! % %>% tt t% )+o,-o$-o S%to$ 23& S#?-%to$ 3& A+t% VI& o t% Co$-tt#to$ %+% ,ot% $ t% --#$% $-%$> o t% o::%:o+t,% )o-t>% -t:)-! It - )+o,% t%+%$ tt& No )#? :o$% o+)+o)%+t - %,%+ ?% ))+o)+t%& ))%& o+ #-%& +%t o+ $+%t& o+ t% #-%& ?%$%t& o+-#))o+t o $ -%t& #+& %$o:$to$& -%t+$& $-tt#to$& o+ --t%: o +%>o$& o+ o+ t%#-%& ?%$%t& o+ -#))o+t o $ )+%-t& )+%%+& :$-t%+& o+ ot%+ +%>o#- t%%+ o+ >$t+- -#& %%)t %$ -# )+%-t& )+%%+& :$-t%+& o+ >$t+ - -->$% to t% +:% o+%-o+ to $ )%$ $-tt#to$& o+)$>%& o+ %)+o-+#:!Issue6 %t%+ o+ $ot t% --#$% o -t:)- - $ ,oto$ o t% )+$)% o -%)+to$ o#+ $ -tt%Rulig6N'!1! R%>o#- +%%o:& - o$-tt#to$ :$t%& - $ot $?to$ o )+oo#$ +%,%+%$% o++%>o$ $ - $ot %$ o t- $#%$% $ #:$ +-! R%>o$ - )+o%--o$ o t to $t,% )o%+ tt ?$- $ %%,t%- :$ to - C+%to+ - +%o>$%! I$ -o + - t $-t- $tot% :$- t% )#+%-t )+$)%- o :o+t& t- $#%$% - %%) %t $ > ))+%t%!

2! %$ t% F)$o )%o)%& $ t% )+%:?% o t% Co$-tt#to$& :)o+% t% o D,$%P+o,%$%& $ o+%+ to %-t?- >o,%+$:%$t tt - %:?o t%+ %-& o$-%+,% $%,%o) t% )t+:o$ o t% $to$& )+o:ot% t% >%$%+ %+%& $ -%#+% to t%:-%,%- $t%+ )o-t%+t t% ?%--$>- o $%)%$%$% #$%+ +%>:% o @#-t%& ?%+t $ %:o+&t% t%+%? :$%-t% +%$% #)o$ : o >#%- t% %-t$%- o :%$ $ $to$-! T%%%,t$> $#%$% o +%>o$ $ #:$ -o%t - +%o>$% %+% - %-%%+%! I$ t& %+t$>%$%+ o$%--o$- +% $-+:$t% o+% to +%>o#- -%t- $ %$o:$to$-!

3! T%+% - ?%%$ $o o$-tt#to$ $+to$ $ t- -%! At No! 4052 >+$t% t% D+%to+ oPo-t-& t t% ))+o, o t% S%! o P#? o+B- $ Co::#$to$-& -+%to$ to --#%)o-t>% -t:)- t $% %->$-! E,%$ % %+% to --#:% tt t%-% o:%$t $ --#$> $ -%$> t% )o-t>% -t:)- $ #%-to$& -t& t% -% o t%)%tto$%+ o# to tB% $ %>t! =%t%%$ t% %%+-% o )oo+ @#>:%$t $ t%#$o$-tt#to$t o t% -t%) tB%$& >) %-t- - %t to ?% % to @#-t t% o#+t $-%tt$> -% t% o t$ o$-tt#to$ $?to$! T% o#+t+%-o,% to %$ t% )%tto$ o+ +t o )+o?to$!

SECTION :>. No ! $! e !e n#"e!n *$e !e!*e :u"#*on o *$e Su"e'e Cou"*! "oe n *$ Con**u*on *$ou* * !#e !n #on#u""en#e.

CASE345 Dia' %s. CA

(G.R. No. 109698, e#e'e" 5, 1994)325 Fi$st #e0ato Ce$amics! Ic.

%s. CA (G.R. No. 1105%1, !"#$ 10,1994)

345 Dia' %s. CA (G.R. No. 109698, e#e'e" 5, 1994)

FU## CASE63G.R. No. 4>9


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ANT'NI' DIA/ AND ^'SUM' DA=A& )%tto$%+-&,-!

C'URT 'F APPEALS& ENERG REGULAT'R ='ARD AND DAVA' LIGT AND P'ER C'!&INC!&+%-)o$%$t-!

R E S ' L U T I ' N

=ELL'SILL'& J.>

'$ 23 "$#+ 1991& D,o L>t $ Po%+ Co:)$& I$! (DLPC % t t% E$%+>R%>#to+ =o+ (ER= $ ))to$ o+ t% ))+o, o t% -o#$ ,#% ))+- o t-)+o)%+t $ -%+,%!

T% A-$ A))+- Co:)$ ,#% t% )+o)%+t $ %#):%$t o DLPC - o 12 M+1990 t '$% =o$ '$% #$+% Fo+t '$% Mo$ S%,%$ #$+% S%,%$t Fo#+ To#-$ P%-o-(P1&141&774&000!00!

'$ 6 D%%:?%+ 1992& ER= ))+o,% t% ))to$ o DLPC t%+ %#t$> Fo#+t%%$

Mo$ E>t #$+% To#-$ P%-o- (P14&800&000!00 o+t o )+o)%+t $ %#):%$t %+% $ot #-% ? DLPC $ t- o)%+to$!

'$ 6 "# 1992& )%tto$%+- % )%tto$ o+ +%,% o$ #e"*o"!" ?%o+% t- Co#+t--$> t% %-o$ o ER= o$ t% >+o#$ o B o @#+-to$ $o+ >+,% ?#-% o -+%to$:o#$t$> to B o @#+-to$!

I$ o#+ +%-o#to$ o 8 S%)t%:?%+ 1992& % +%%++% t% -% o+ )+o)%+ -)o-to$ to t%Co#+t o A))%- -#?-%#%$t -:--% t% )%tto$ o$ t% >+o#$ tt (1 t% $> ot% )%tto$ o+ +%,% t t% S#)+%:% Co#+t - +o$> :o% o ))%& $ (2 t% )%tto$ $ot o:) t t% )+o,-o$- o S#)+%:% Co#+t C+#+ 1;88 $ tt ( t $ot -tt% t%

t% %$ t% )%tto$%+- +%%,% $ot% o t% ER= %-o$& (? t $ot -tt% t% t% %$t% )%tto$%+- % :oto$ o+ +%o$-%+to$& $ ( t $o$--t%$t %>% %+%$t t%-%$ )%tto$%+- -#))o-% +%%,% t% %$ o t%+ :oto$ ? ER=!

'$ 18 D%%:?%+ 1992& )%tto$%+- % :oto$ o+ +%o$-%+to$ o$t%$$> tt o#++%-o#to$ o 8 S%)t%:?%+ 1992 - +%t,% o+ t% Co#+t o A))%- to -+%>+ t% ?o,%+#+!

I$ t- +%-o#to$ o 24 M+ 1993& t% Co#+t o A))%- %$% t% :oto$ o++%o$-%+to$ o+ B o :%+t! %$%& t% $-t$t +%o#+-%!

% %$ t% )%tto$! T% )+%%%--o+ o t% E$%+> R%>#to+ =o+ - t% =o+ oE$%+> +%t% #$%+ P!D! No! 1206! T%+%#$%+& ))%- +o: t% %-o$- o t% =o+ oE$%+> %+% ))%?% to t% ' t% "#+ R%o+>$to$ At o 1980& $ %-o$-& o+%+-& +- o++%-o#to$- o t% =o+ o E$%+> %+% :% ))%?% to t% I$t%+:%t% A))%t% Co#+t(S%! 9!

'$ 2 F%?+#+ 1987& t% N% Co$-tt#to$ tooB %%t! S%! 30& A+t! VI& t%+%o )+o,%-JNo - ?% )--% $+%-$> t% ))%t% @#+-to$ o t% S#)+%:% Co#+t - )+o,% $


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t- Co$-tt#to$ to#t t- ,% $ o$#++%$%!'$ 8 M 1987& t% P+%-%$t )+o:#>t% E!'! No! 172 +%t$> t% E$%+> R%>#to+

=o+ to +%)% t% =o+ o E$%+>! U$%+ S%! 10 t%+%o& )+t ,%+-% %t% ? %-o$& o+%+ o+ +#$> o t% =o+ ! ! ! : % )%tto$ to ?% B$o$ - )%tto$ o+ +%,%t t% S#)+%:% Co#+t!

'$ 27 F%?+#+ 1991& t% S#)+%:% Co#+t )+o:#>t% C+#+ No1;91& )+! (1 o -)% )+o,%- tt t% )+o)%+ :o% o ))% +o: $ #-;

@# >%$& $#$> ER=& - ? o )%tto$ o+ +%,% t t% Co#+t o A))%-!

It - ,%+ )t%$t tt -$% S%! 10 o E!'! No! 172 - %$t% to#t t% ,% $o$#++%$% o t- Co#+t& t- )+o,-o$ $%,%+ ?%:% %%t,%& t t% +%-#t tt t $$ot ?%%%:% to ,% :%$% t% Ju#!" Reo"!n7!*on =#* o 1980! Co$-%#%$t& t% #to+to t% Co#+t o A))%- to %% -%- +o: t% =o+ o E$%+>& $o ER=& +%:$- ( C. "*Le!n*o Ce"!'#, In#. . Cou"* o =e!& G!R! No! 110571& 7 'to?%+ 1994!

I t% ))% - ?+o#>t to %t%+ Co#+t (S#)+%:% Co#+t o+ Co#+t o A))%- ? t% +o$>)+o%#+%& t% o$ o#+-% o to$ o)%$ to t - to -:-- t% ))%! T%+% - $o o$>%+ $

@#-tto$ o+ o$> t+$-%+- o %++o$%o#- ))%- +o: o$% o#+t to $ot%+ (.#%- ,Co#+t o A))%-& G!R! No! 93869& 12 No,%:?%+ 1990!

P+o+ to C+#+ No! 1;91& t% S#)+%:% Co#+t )+o:#>t% C+#+ No! 2;90 t% 9 M+1990& It%: No! 4 o -tt%- tt $ ))% tB%$ to %t%+ t% S#)+%:% Co#+t o+ t% Co#+to A))%- ? t% +o$> o+ $))+o)+t% :o% - ?% -:--%!

P+>+) ( o - C+#+ No! 2;90 -o )+o,%- tt $o t+$-%+ o ))%-%++o$%o#- tB%$ to t% S#)+%:% Co#+t o+ to t

group 2 full cases, digests, with provisions(sections 28, 29, 30 and 32)

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