(Part 2) En Banc cases; Villafuerte v. Securities and Exchange Commission [29 Mar 2022] [Case No. 2]
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(Part 2) En Banc cases penned by Justice Hernando. Villafuerte v. Securities and Exchange Commission [29 Mar 2022] [Case No. 2] |
Doctrine:
JUDICIAL REVIEW;
LEGAL STANDING;
TAXPAYER'S SUIT;
MATTER OF TRANSCENDENTAL IMPORTANCE;
THIRD-PARTY STANDING;
HIERARCHY OF COURTS.
JUDICIAL REVIEW; LEGAL STANDING
Among the requisites for judicial review is legal standing or locus standi, which is the "right of appearance in a court of justice on a given question." To possess legal standing, parties must show "a personal and substantial interest in the case such that [they have] sustained or will sustain direct injury as a result of the governmental act that is being challenged."
What is required is "a material interest, an interest in issue affected by the decree as distinguished from mere interest in the question involved, or a mere incidental interest."
EXCEPTION.
Like any rule, the rule on legal standing has exceptions. This Court has taken cognizance of petitions filed by those who have no personal or substantial interest in the challenged governmental act but whose petitions nevertheless raise "constitutional issue[s] of critical significance."
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This Court summarized the requirements for granting legal standing to "non-traditional suitors" in Funa v. Villar, thus:
Like any rule, the rule on legal standing has exceptions. This Court has taken cognizance of petitions filed by those who have no personal or substantial interest in the challenged governmental act but whose petitions nevertheless raise "constitutional issue[s] of critical significance."
This Court summarized the requirements for granting legal standing to "non-traditional suitors" in Funa v. Villar, thus:
1.) For taxpayers, there must be a claim of illegal disbursement of public funds or that the tax measure is unconstitutional;
2.) For voters, there must be a showing of obvious interest in the validity of the election law in question;
3.) For concerned citizens, there must be a showing that the issues raised are of transcendental importance which must be settled early; and
4.) For legislators, there must be a claim that the official action complained of infringes their prerogatives as legislators. x x x
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Another exception is the concept of third-party standing. Under this concept, actions may be brought on behalf of third parties provided the following criteria are met: first, "the [party bringing suit] must have suffered an 'injury-in-fact,' thus giving him or her a 'sufficiently concrete interest' in the outcome of the issue in dispute"; second, "the party must have a close relation to the third party"; and third, "there must exist some hindrance to the third party's ability to protect his or her own interests."
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TAXPAYER'S SUIT.
The requirements for a taxpayer's suit:
(1) that public funds derived from taxation are disbursed by a political subdivision or instrumentality and in doing so, a law is violated or some irregularity is committed; and
(2) that the petitioner is directly affected by the alleged act.
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MATTER OF TRANSCENDENTAL IMPORTANCE.
To determine whether a matter is of transcendental importance, the Court considers "
(1) the character of the funds or other assets involved in the case;
(2) the presence of a clear case of disregard of a constitutional or statutory prohibition by the public respondent agency or instrumentality of the government; and
(3) the lack of any other party with a more direct and specific interest in the questions being raised."
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THIRD-PARTY STANDING.
the jurisprudential requirements for third-party standing:
(1) that the party must have suffered an injury-in-fact, thus giving him or her a sufficiently concrete interest in the outcome of the issue in dispute;
(2) that the party must have a close relation to the third party; and
(3) that there must exist some hindrance to the third party's ability to protect his or her own interests.
What is required in suits by concerned citizens is "an allegation that the continuing enforcement of a law or any government act has denied the party some right or privilege to which they are entitled, or that the party will be subjected to some burden or penalty because of the law or act being complained of."
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HIERARCHY OF COURTS.
Hierarchy of courts is the mechanism that ordains a sequence of recourse to courts vested with concurrent jurisdiction. The hierarchy begins from the trial courts, then the Court of Appeals and the other intermediate courts, then finally the Supreme Court.
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This sequence recognizes;
(1) the various levels of courts in the country as they are established under the Constitution and by law;
(2) their ranking and effect of their rulings in relation with one another; and
(3) how they interact with one another.
Given the differences in these aspects, the questions these courts resolve also differ: trial courts decide questions of fact and law at first instance; the Court of Appeals and the other intermediate courts, both questions of fact and law; and this Court, only questions of law in general.
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While We have previously held that the invocation of the Court's original jurisdiction to issue extraordinary writs may be allowed on the ground of special and important reasons or transcendental importance, in the landmark case of Gios-Samar, Inc. v. Department of Transportation and Communications, the Court clarified that direct recourse is allowed only when the issues presented are purely legal:
In fine, while this Court has original and concurrent jurisdiction with the RTC and the CA in the issuance of writs of certiorari, prohibition, mandamus, quo warranto, and habeas corpus (extraordinary writs), direct recourse to this Court is proper only to seek resolution of questions of law. Save for the single specific instance provided by the Constitution under Section 18, Article VII, cases the resolution of which depends on the determination of questions of fact cannot be brought directly before the Court because we are not a trier of facts.
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Accordingly, for the guidance of the bench and the bar, we reiterate that when a question before the Court involves determination of a factual issue indispensable to the resolution of the legal issue, the Court will refuse to resolve the question regardless of the allegation or invocation of compelling reasons, such as the transcendental or paramount importance of the case. Such question must first be brought before the proper trial courts or the CA, both of which are specially equipped to try and resolve factual questions.
WHEREFORE, this Court resolves to DISMISS the petition.
The Motion to Withdraw as Petitioner of Benjamin E. Diokno is GRANTED. Respondent Bankers' Association of the Philippines' compliance with the Move in the Premises Resolution dated March 3, 2020 is DISPENSED WITH.
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