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THIRD DIVISION

[G.R. No. 131622. November 27, 1998]

LETICIA Y. MEDEL DR. RAFAEL MEDEL and SERVANDO FRANCO, petitioners,

vs. COURT OF APPEALS, SPOUSES VERONICA R. ON!ALES and DANILO .

ON!ALES, "R., doin# $endin# %&siness &nder t'e trade na(e and st)$e*ON!ALES CREDIT ENTERPRISES*, respondents.

D E C I S I O N

PRDO, !."

T#e $%&e be'ore (#e Co)r( *& % +e(*(*o 'or rev*e- o $er(*or%r*, )er R)/e 0 o' (#e

Rev*&e R)/e& o' Co)r(, &ee* (o &e( %&*e (#e e$*&*o o' (#e Co)r( o' ++e%/&,[1]

% *(& re&o/)(*o e4* re$o&*er%(*o,[2] (#e *&+o&*(*ve +or(*o o' -#*$#

e$*&*o re%& %& 'o//o-&"

5HEREORE, (#e %++e%/e )me( *& #ereb4 ODIIED &)$# (#%( e'e%(& %re

#ereb4 orere (o +%4 (#e +/%*(*:" (#e &)m o' P;;,;;;.;;, +/)& .< +er mo(#

*(ere&( % 2< &erv*$e $#%re +er %)m e:e$(*ve !)/4 23, 1986, +/)& 1< +er

mo(# o' (#e (o(%/ %mo)( )e % em%%b/e %& +e%/(4 $#%re& e:e$(*ve ))&(

23, 1986, )(*/ (#e e(*re %mo)( *& ')//4 +%*.

5T#e %-%r (o (#e +/%*(*: o' P;,;;;.;; %& %((ore4=& 'ee& *& %>rme. &o *&

(#e *m+o&*(*o o' $o&(& %%*&( (#e e'e%(&.

SO ORDERED.5[3]

T#e Co)r( re?)*re (#e re&+oe(& (o $omme( o (#e +e(*(*o,[0] -#*$# -%& @/e

o +r*/ 3, 1998,[] % (#e +e(*(*oer& (o re+/4 (#ere(o, -#*$# -%& @/e o %4 29,

1998.[6] e o- re&o/ve (o *ve )e $o)r&e (o (#e +e(*(*o % e$*e (#e $%&e.

T#e '%$(& o' (#e $%&e, %& 'o) b4 (#e Co)r( o' ++e%/& * *(& e$*&*o, -#*$# %re

$o&*ere b** % $o$/)&*ve o (#e +%r(*e& #ere*, %& (#e %++e%/ *& /*m*(e (o

?)e&(*o& o' /%-, %re %& 'o//o-&"

O November 7, 198, Serv%o r%$o % Ae(*$*% ee/ B#ere%'(er Serv%o %

Ae(*$*% ob(%*e % /o% 'rom Vero*$% R. Go%/e& B#ere%'(er Vero*$%, -#o -%&

e%e * (#e moe4 /e* b)&*e&& )er (#e %me 5Go%/e& Cre*(

E(er+r*&e&5, * (#e %mo)( o' P;,;;;.;;, +%4%b/e * (-o mo(#&. Vero*$% %ve

o/4 (#e %mo)( o' P07,;;;.;;, (o (#e borro-er&, %& &#e re(%*e P3,;;;.;;, %&

1



%v%$e *(ere&( 'or oe mo(# %( 6< +er mo(#. Serv%o % Ae(*$*% ee$)(e %

+rom*&&or4 o(e 'or P;,;;;.;;, (o ev*e$e (#e /o%, +%4%b/e o !%)%r4 7, 1986.

O November 19, 198, Serv%o % Ae(*$*% ob(%*e 'rom Vero*$% %o(#er /o%

* (#e %mo)( o' P9;,;;;.;;, +%4%b/e * (-o mo(#&, %( 6< *(ere&( +er mo(#. T#e4 ee$)(e % +rom*&&or4 o(e (o ev*e$e (#e /o%, m%()r* o !%)%r4 19,

1986. T#e4 re$e*ve o/4 P80,;;;.;;, o)( o' (#e +ro$ee& o' (#e /o%.

O m%()r*(4 o' (#e (-o +rom*&&or4 o(e&, (#e borro-er& '%*/e (o +%4 (#e

*eb(ee&&.

O !)e 11, 1986, Serv%o % Ae(*$*% &e$)re 'rom Vero*$% &(*// %o(#er /o% *

(#e %mo)( o' P3;;,;;;.;;, m%()r* * oe mo(#, &e$)re b4 % re%/ e&(%(e

mor(%e over % +ro+er(4 be/o* (o Ae(*$*% %%/*(%/ F%+(*$#%4, -#o *&&)e %&+e$*%/ +o-er o' %((ore4 * '%vor o' Ae(*$*% ee/, %)(#or** #er (o ee$)(e (#e

mor(%e. Serv%o % Ae(*$*% ee$)(e % +rom*&&or4 o(e * '%vor o' Vero*$% (o

+%4 (#e &)m o' P3;;,;;;.;;, %'(er % mo(#, or o !)/4 11, 1986. Ho-ever, o/4 (#e

&)m o' P27,;;;.;;, -%& *ve (o (#em o)( o' (#e +ro$ee& o' (#e /o%.

A*e (#e +rev*o)& /o%&, Serv%o % ee/ '%*/e (o +%4 (#e (#*r /o% o m%()r*(4.

O !)/4 23, 1986, Serv%o % Ae(*$*% -*(# (#e /%((er=& #)&b%, Dr. R%'%e/ ee/,

$o&o/*%(e %// (#e*r +rev*o)& )+%* /o%& (o(%/* P00;,;;;.;;, % &o)#( 'romVero*$% %o(#er /o% * (#e %mo)( o' P6;,;;;.;;, br** (#e*r *eb(ee&& (o %

(o(%/ o' P;;,;;;.;;, +%4%b/e o ))&( 23, 1986. T#e ee$)(e % +rom*&&or4 o(e,

re%* %& 'o//o-&"

5%/*-%, )/%$% !)/4 23, 1986

5%()r*(4 D%(e ))&( 23, 1986

5P;;,;;;.;;

5OR VAE RECEIVED, IE o*(/4 % &ever%//4 +rom*&e (o +%4 (o (#e orer o'

VERONIC R. GONJAES o* b)&*e&& * (#e b)&*e&& &(4/e o' GONJAES CREDIT

ENTERPRISES, */*+*o, o' /e%/ %e, m%rr*e (o D%*/o G. Go%/e&, !r., o' %/*-%

)/%$%, (#e &)m o' PESOS ........ IVE HNDRED THOSND ..... BP;;,;;;.;;

P#*/*++*e C)rre$4 -*(# *(ere&( (#ereo %( (#e r%(e o' . PER CENT +er mo(# +/)&

2



2< &erv*$e $#%re +er %)m 'rom %(e #ereo' )(*/ ')//4 +%* %$$or* (o (#e

%mor(*%(*o &$#e)/e $o(%*e #ere*. Ber&$or* &)++/*e

5P%4me( -*// be m%e * ')// %( (#e m%()r*(4 %(e.

5S#o)/ IE '%*/ (o +%4 %4 %mor(*%(*o or +or(*o #ereo' -#e )e, %// (#e o(#er

*&(%//me(& (oe(#er -*(# %// *(ere&( %$$r)e &#%// *mme*%(e/4 be )e %

+%4%b/e % IE #ereb4 %ree (o +%4 % %*(*o%/ %mo)( e?)*v%/e( (o oe +er

$e( B1< +er mo(# o' (#e %mo)( )e % em%%b/e %& +e%/(4 $#%re& * (#e

'orm o' /*?)*%(e %m%e& )(*/ ')//4 +%*K % (#e ')r(#er &)m o' TENTF IVE

PER CENT B2< (#ereo * ')//, -*(#o)( e)$(*o& %& ((ore4=& ee -#e(#er

%$()%//4 *$)rre or o(, o' (#e (o(%/ %mo)( )e % em%%b/e, e$/)&*ve o' $o&(&

% )*$*%/ or e(r% )*$*%/ e+e&e&. Ber&$or* &)++/*e

5I, E ')r(#er %ree (#%( * (#e eve( (#e +re&e( r%(e o' *(ere&( o /o% *&

*$re%&e b4 /%- or (#e Ce(r%/ % o' (#e P#*/*++*e&, (#e #o/er &#%// #%ve (#e

o+(*o (o %++/4 % $o//e$( (#e *$re%&e *(ere&( $#%re& -*(#o)( o(*$e %/(#o)#

(#e or**%/ *(ere&( #%ve %/re%4 bee $o//e$(e -#o//4 or +%r(*%//4 )/e&& (#e

$o(r%r4 *& re?)*re b4 /%-.

5I( *& %/&o % &+e$*%/ $o*(*o o' (#*& $o(r%$( (#%( (#e +%r(*e& #ere* %ree (#%( (#e

%mo)( o' +e&oLob/*%(*o )er (#*& %reeme( *& b%&e o (#e +re&e( v%/)e o'

+e&o, % *' (#ere be %4 $#%e * (#e v%/)e (#ereo', )e (o e(r%or*%r4 *M%(*o

or eM%(*o, or %4 o(#er $%)&e or re%&o, (#e (#e +e&oLob/*%(*o #ere*$o(r%$(e &#%// be %)&(e * %$$or%$e -*(# (#e v%/)e o' (#e +e&o (#e

+rev%*/* %( (#e (*me o' (#e $om+/e(e ')/@//me( o' ob/*%(*o.

5Dem% % o(*$e o' *&#oor -%*ve. Ho/er m%4 %$$e+( +%r(*%/ +%4me(& %

r%( ree-%/& o' (#*& o(e or e(e&*o o' +%4me(&, re&erv* r*#(& %%*&( e%$#

% %// *or&er& % %// +%r(*e& (o (#*& o(e.

5IN CSE O !DICIA Ee$)(*o o' (#*& ob/*%(*o, or %4 +%r( o' *(, (#e eb(or&

-%*ve %// #*&(#e*r r*#(& )er (#e +rov*&*o& o' Se$(*o 12, R)/e 39, o' (#e Rev*&e

R)/e& o' Co)r(.5

O m%()r*(4 o' (#e /o%, (#e borro-er& '%*/e (o +%4 (#e *eb(ee&& o'

P;;,;;;.;;, +/)& *(ere&(& % +e%/(*e&, ev*e$e b4 (#e %boveL?)o(e

+rom*&&or4 o(e.

3



O ebr)%r4 2;, 199;, Vero*$% R. Go%/e&, o*e b4 #er #)&b% D%*/o G.

Go%/e&, @/e -*(# (#e Re*o%/ Tr*%/ Co)r( o' )/%$%, r%$# 16, %( %/o/o&,

)/%$%, % $om+/%*( 'or $o//e$(*o o' (#e ')// %mo)( o' (#e /o% *$/)* *(ere&(&

% o(#er $#%re&.

I #*& %&-er (o (#e $om+/%*( @/e -*(# (#e (r*%/ $o)r( o +r*/ , 199;, e'e%(

Serv%o %//ee (#%( #e * o( ob(%* %4 /o% 'rom (#e +/%*(*:&K (#%( *( -%&

e'e%(& Ae(*$*% % Dr. R%'%e/ ee/ -#o borro-e 'rom (#e +/%*(*:& (#e &)m o'

P;;,;;;.;;, % %$()%//4 re$e*ve (#e %mo)( % bee@(e (#ere'romK (#%( (#e

/o% -%& &e$)re b4 % re%/ e&(%(e mor(%e ee$)(e * '%vor o' (#e +/%*(*:&, %

(#%( #e BServ%o r%$o &*e (#e +rom*&&or4 o(e o/4 %& % -*(e&&.

I (#e*r &e+%r%(e %&-er @/e o +r*/ 1;,199;, e'e%(& Ae(*$*% % R%'%e/ ee/

%//ee (#%( (#e /o% -%& (#e (r%&%$(*o o' Ae(*$*% F%+(*$#%4, -#o ee$)(e %

mor(%e * '%vor o' (#e +/%*(*:& over % +%r$e/ o' re%/ e&(%(e &*()%(e * S% !)%,

%(%%&K (#%( (#e *(ere&( r%(e *& e$e&&*ve %( .< +er mo(# -*(# %*(*o%/

&erv*$e $#%re o' 2< +er %)m, % +e%/(4 $#%re o' 1< +er mo(#K (#%( (#e

&(*+)/%(*o 'or %((ore4=& 'ee& o' 2< o'(#e %mo)( )e *& )$o&$*o%b/e, *//e%/

% e$e&&*ve, % (#%( &)b&(%(*%/ +%4me(& m%e -ere %++/*e (o *(ere&(,

+e%/(*e& % o(#er $#%re&.

'(er )e (r*%/, (#e /o-er $o)r( e$/%re (#%( (#e )e ee$)(*o % e)*ee&& o'

(#e 'o)r +rom*&&or4 o(e& #% bee )/4 +rove, % r)/e (#%( %/(#o)# (#e &)r4

A%- #% bee re+e%/e, (#e *(ere&( $#%re b4 (#e +/%*(*:& o (#e /o%& -%&

)$o&$*o%b/e % 5revo/(* (o (#e $o&$*e$e5. He$e, (#e (r*%/ $o)r( %++/*e

5(#e +rov*&*o o' (#e Ne- [C*v*/] Coe5 (#%( (#e 5/e%/ r%(e o' *(ere&( 'or /o% or

'orbe%r%$e o' moe4, oo& or $re*( *& 12< +er %)m.5[7]

$$or*/4, o De$ember 9, 1991, (#e (r*%/ $o)r( reere )me(, (#e

*&+o&*(*ve +or(*o o' -#*$# re%& %& 'o//o-&"

5HEREORE, +rem*&e& $o&*ere, )me( *& #ereb4 reere, %& 'o//o-&"

51. Orer* (#e e'e%(& Serv%o r%$o % Ae(*$*% ee/, o*(/4 %

&ever%//4, (o +%4 +/%*(*:& (#e %mo)( o' P07,;;;.;; +/)& 12< *(ere&( +er %)m

'rom November 7, 198 % 1< +er mo(# %& +e%/(4, )(*/ (#e e(*re %mo)( *&

+%* * ')//.

0



52. Orer* (#e e'e%(& Serv%o r%$o % Ae(*$*% F. ee/ (o +/%*(*:&,

o*(/4 % &ever%//4 (#e %mo)( o' P80,;;;.;; -*(# 12< *(ere&( +er %)m %

1< +er $e( +er mo(# %& +e%/(4 'rom November 19,198 )(*/ (#e -#o/e %mo)(

*& ')//4 +%*K

53. Orer* (#e e'e%(& (o +%4 (#e +/%*(*:&, o*(/4 % &ever%//4, (#e %mo)(

o' P28,;;;.;; +/)& 12< *(ere&( +er %)m % 1< +er mo(# %& +e%/(4 'rom !)/4

11, 1986, )(*/ (#e -#o/e %mo)( *& ')//4 +%*K

50. Orer* (#e e'e%(& (o +%4 +/%*(*:&, o*(/4 % &ever%//4, (#e %mo)( o'

P;,;;;.;; %& %((ore4=& 'ee&K

5. // $o)(er$/%*m& %re #ereb4 *&m*&&e.

5*(# $o&(& %%*&( (#e e'e%(&.5[8]

I )e (*me, bo(# +/%*(*:& % e'e%(& %++e%/e (o (#e Co)r( o' ++e%/&.

I (#e*r %++e%/, +/%*(*:&L%++e//%(& %r)e (#%( (#e +rom*&&or4 o(e, -#*$#

$o&o/*%(e %// (#e )+%* /o%& o' (#e e'e%(&, *& (#e /%- (#%( over& (#e+%r(*e&. T#e4 ')r(#er %r)e (#%( C*r$)/%r No. 016 o' (#e Ce(r%/ % +re&$r*b*

(#e r%(e o' *(ere&( 'or /o%& or 'orbe%r%$e o' moe4, oo& or $re*( %( 12< +er

%)m, %++/*e& o/4 * (#e %b&e$e o' % &(*+)/%(*o o *(ere&( r%(e, b)( o( -#e

(#e +%r(*e& %ree (#ereo.

T#e Co)r( o' ++e%/& &)&(%*e (#e +/%*(*:&L%++e//%(&= $o(e(*o. I( r)/e (#%(

5(#e &)r4 A%- #%v* be$ome =/e%//4 *e*&(e(= -*(# (#e +rom)/%(*o b4 (#e

Ce(r%/ % * 1982 o' C*r$)/%r No. 9;, (#e /eer % borro-er $o)/ %ree o

%4 *(ere&( (#%( m%4 be $#%re o (#e /o%5.[9] T#e Co)r( o' ++e%/& ')r(#er #e/

(#%( 5(#e *m+o&*(*o o' =% %*(*o%/ %mo)( e?)*v%/e( (o 1< +er mo(# o' (#e%mo)( )e % em%%b/e %& +e%/(4 $#%re& * (#e 'orm o' /*?)*%(e %m%e&

)(*/ ')//4 +%*= -%& %//o-e b4 /%-5.[1;]

$$or*/4, o %r$# 21, 1997, (#e Co)r( o' ++e%/& +rom)/%(e *( e$*&*o

rever&* (#%( o' (#e Re*o%/ Tr*%/ Co)r(, *&+o&* %& 'o//o-&"



5HEREORE, (#e %++e%/e )me( *& #ereb4 ODIIED &)$# (#%( e'e%(& %re

#ereb4 orere (o +%4 (#e +/%*(*:& (#e &)m o' P;;,;;;.;;, +/)& .< +er mo(#

*(ere&( % 2< &erv*$e $#%re +er %)m e:e$(*ve !)/4 23, 1986, +/)& 1< +er

mo(# o' (#e (o(%/ %mo)( )e % em%%b/e %& +e%/(4 $#%re& e:e$(*ve ))&(

20, 1986, )(*/ (#e e(*re %mo)( *& ')//4 +%*.

5T#e %-%r (o (#e +/%*(*:& o' P;,;;;.;; %& %((ore4=& 'ee& *& %>rme. &o *&

(#e *m+o&*(*o o' $o&(& %%*&( (#e e'e%(&.

5SO OREDERED.5[11]

O +r*/ 1, 1997, e'e%(&L%++e//%(& @/e % mo(*o 'or re$o&*er%(*o o' (#e&%* e$*&*o. 4 re&o/)(*o %(e November 2, 1997, (#e Co)r( o' ++e%/& e*e

(#e mo(*o.[12]

He$e, e'e%(& *(er+o&e (#e +re&e( re$o)r&e v*% +e(*(*o 'or rev*e- o

$er(*or%r*.[13]

e @ (#e +e(*(*o mer*(or*o)&.

%&*$%//4, (#e *&&)e revo/ve& o (#e v%/**(4 o' (#e *(ere&( r%(e &(*+)/%(e )+o.

T#)&, (#e ?)e&(*o +re&e(e *& -#e(#er or o( (#e &(*+)/%(e r%(e o' *(ere&( %(

.< +er mo(# o (#e /o% * (#e &)m o' P;;,;;;.;;, (#%( +/%*(*:& e(ee (o

(#e e'e%(& *& )&)r*o)&. I o(#er -or&, *& (#e &)r4 A%- &(*// e:e$(*ve, or #%& *(

bee re+e%/e b4 Ce(r%/ % C*r$)/%r No. 9;, %o+(e o De$ember 22, 1982,

+)r&)%( (o *(& +o-er& )er P.D. No. 116, %& %mee b4 P.D. No. 1680

e %ree -*(# +e(*(*oer& (#%( (#e &(*+)/%(e r%(e o' *(ere&( %( .< +er mo(# o

(#e P;;,;;;.;; /o% *& e$e&&*ve, **?)*(o)&, )$o&$*o%b/e % eorb*(%(.13

Ho-ever, -e $% o( $o&*er (#e r%(e 5)&)r*o)&5 be$%)&e (#*& Co)r( #%&$o&*&(e(/4 #e/ (#%( C*r$)/r No. 9; o' (#e Ce(r%/ %, %o+(e o De$ember 22,

1982, #%& e+re&&/4 remove (#e *(ere&( $e*/*& +re&$r*be b4 (#e &)r4 A%-[10]

% (#%( (#e &)r4 A%- *& o- 5/e%//4 *e*&(e(5.[1]

I Se$)r*(4 % % Tr)&( Com+%4 v&. Re*o%/ Tr*%/ Co)r( o' %%(*, r%$#

61[16] (#e Co)r( #e/ (#%( C C*r$)/%r No. 9; 5* o( re+e%/ or * %4-%4 %me

6



(#e &)r4 A%- b)( &*m+/4 &)&+ee (#e /%((er=& e:e$(*v*(4.5 Iee, -e #%ve #e/

(#%( 5% Ce(r%/ % C*r$)/%r $% o( re+e%/ % /%-. O/4 % /%- $% re+e%/ %o(#er

/%-.5[17] I (#e re$e( $%&e o' /oreo v&. Co)r( o' ++e%/&[18], (#e Co)r(

re*(er%(e (#e r)/* (#%( 5b4 v*r()e o' C C*r$)/%r 9;, (#e &)r4 A%- #%& bee

reere *e:e$(*ve5. 5&)r4 #%& bee /e%//4 oLe*&(e( * o)r )r*&*$(*o.

I(ere&( $% o- be $#%re %& /eer % borro-er m%4 %ree )+o.5[19]

Never(#e/e&&, -e @ (#e *(ere&( %( .< +er mo(#, or 66< +er %)m, &(*+)/%(e

)+o b4 (#e +%r(*e& * (#e +rom*&&or4 o(e **?)*(o)& or )$o&$*o%b/e, %,

#e$e, $o(r%r4 (o mor%/& B5$o(r% boo& more&5, *' o( %%*&( (#e /%-.[2;] T#e

&(*+)/%(*o *& vo*.[21] T#e $o)r(& &#%// re)$e e?)*(%b/4 /*?)*%(e %m%e&,

-#e(#er *(ee %& % *em*(4 or % +e%/(4 *' (#e4 %re **?)*(o)& or

)$o&$*o%b/e.[22]

Co&e?)e(/4, (#e Co)r( o' ++e%/& erre * )+#o/* (#e &(*+)/%(*o o' (#e +%r(*e&.R%(#er, -e %ree -*(# (#e (r*%/ $o)r( (#%(, )er (#e $*r$)m&(%$e&, *(ere&( %( 12<

+er %)m, % % %*(*o%/ 1< % mo(# +e%/(4 $#%re %& /*?)*%(e %m%e&

m%4 be more re%&o%b/e.

HEREORE, (#e Co)r( #ereb4 REVERSES % SETS SIDE (#e e$*&*o o' (#e Co)r(

o' ++e%/& +rom)/%(e o %r$# 21, 1997, % *(& re&o/)(*o %(e November 2,

1997. I&(e%, -e reer )me( REVIVING % IRING (#e e$*&*o %(e

De$ember 9, 1991, o' (#e Re*o%/ Tr*%/ Co)r( o' )/%$%, r%$# 16, %/o/o&,

)/%$%, * C*v*/ C%&e No. 130LL9;, *vo/v* (#e &%me +%r(*e&.

No +roo)$eme( %& (o $o&(& * (#*& *&(%$e

SO ORDERED.

7



Republic of the Philippines

SUPREME COURT

Manila

EN BANC

G.R. No. 189871 August 13, 2013

DARIO NACAR, Petitioner ,

vs.

GALLERY FRAMES AND/OR FELIPE BORDEY, JR., Respondents.

D E C I S I O N

PERALTA, J.:

his is a petition fo! !evie" on ce!tio!a!i assailing the #ecision1 $ate$ %epte&be! 23, 200' of

the Cou!t of Appeals (CA) in CA*+.R. %P No. '-1, an$ the Resolution2

$ate$ ctobe! , 200$en/ing petitione!s &otion fo! !econsi$e!ation.

he factual antece$ents a!e un$ispute$.

Petitione! #a!io Naca! file$ a co&plaint fo! const!uctive $is&issal befo!e the A!bit!ation B!anch of

the National abo! Relations Co&&ission (NRC) against !espon$ents +alle!/ !a&es (+) an$o!

elipe Bo!$e/, 4!., $oc5ete$ as NRC NCR Case No. 01*00-1*6.

n ctobe! 1-, 1', the abo! A!bite! !en$e!e$ a #ecision 3 in favo! of petitione! an$ foun$ that he

"as $is&isse$ f!o& e&plo/&ent "ithout a vali$ o! 7ust cause. hus, petitione! "as a"a!$e$

bac5"ages an$ sepa!ation pa/ in lieu of !einstate&ent in the a&ount of P1-',1.2. he

$ispositive po!tion of the $ecision, !ea$s8

9ith the fo!egoing, "e fin$ an$ so !ule that !espon$ents faile$ to $ischa!ge the bu!$en of sho"ing

that co&plainant "as $is&isse$ f!o& e&plo/&ent fo! a 7ust o! vali$ cause. All the &o!e, it is clea! f!o& the !eco!$s that co&plainant "as neve! affo!$e$ $ue p!ocess befo!e he "as te!&inate$. As

such, "e a!e pe!fo!ce const!aine$ to g!ant co&plainants p!a/e! fo! the pa/&ents of sepa!ation pa/

in lieu of !einstate&ent to his fo!&e! position, consi$e!ing the st!aine$ !elationship bet"een the

pa!ties, an$ his appa!ent !eluctance to be !einstate$, co&pute$ onl/ up to p!o&ulgation of this

$ecision as follo"s8SEPARATION PAY

Date Hired = August 1990

8



Rate = P198/day

Date of Deisio! = Aug" 18# 1998

$e!gt% of Ser&ie = 8 yrs" ' 1 (o!t%P198"00 ) *+ days ) 8 (o!t%s = P,1#18,"00-A.AES

Date Dis(issed = 2a!uary *,# 1993

Rate 4er day = P19+"00Date of Deisio!s = Aug" 18# 1998

a5 1/*,/93 to */6/98 = 1*"7+ (os"

P19+"00/day ) 1*"7+ (os" = P+*#98+"6+

5 */+/98 to 8/18/98 = +", (o!t%sPre&aii!g Rate 4er day = P+*#98+"00

P198"00 ) *+ days ) +", (os" = P7*#9,3"*0

T O T A $ = P96"977"3+: : : :

9;ERERE, p!e&ises consi$e!e$, 7u$g&ent is he!eb/ !en$e!e$ fin$ing !espon$ents guilt/ of

const!uctive $is&issal an$ a!e the!efo!e, o!$e!e$8

o pa/ 7ointl/ an$ seve!all/ the co&plainant the a&ount of si:t/*t"o thousan$ nine hun$!e$ eight/*

si: pesos an$ -<100 (P<2,'<.-<) Pesos !ep!esenting his sepa!ation pa/=

o pa/ 7ointl/ an$ seve!all/ the co&plainant the a&ount of nine (sic) five thousan$ nine hun$!e$

thi!t/*th!ee an$ 3<100 (P-,33.3<) !ep!esenting his bac5"ages= an$

All othe! clai&s a!e he!eb/ $is&isse$ fo! lac5 of &e!it.

% R#ERE#.>

Respon$ents appeale$ to the NRC, but it "as $is&isse$ fo! lac5 of &e!it in the Resolution - $ate$

eb!ua!/ 2, 2000. Acco!$ingl/, the NRC sustaine$ the $ecision of the abo! A!bite!. Respon$ents

file$ a &otion fo! !econsi$e!ation, but it "as $enie$.<

#issatisfie$, !espon$ents file$ a Petition fo! Revie" on Ce!tio!a!i befo!e the CA. n August 2>,

2000, the CA issue$ a Resolution $is&issing the petition. Respon$ents file$ a Motion fo!

Reconsi$e!ation, but it "as li5e"ise $enie$ in a Resolution $ate$ Ma/ ', 2001.6

Respon$ents then sought !elief befo!e the %up!e&e Cou!t, $oc5ete$ as +.R. No. 1-1332. in$ing

no !eve!sible e!!o! on the pa!t of the CA, this Cou!t $enie$ the petition in the Resolution $ate$ Ap!il

16, 2002.'

An Ent!/ of 4u$g&ent "as late! issue$ ce!tif/ing that the !esolution beca&e final an$ e:ecuto!/ on

Ma/ 26, 2002. he case "as, the!eafte!, !efe!!e$ bac5 to the abo! A!bite!. A p!e*e:ecution

confe!ence "as conse?uentl/ sche$ule$, but !espon$ents faile$ to appea!.10

n Nove&be! -, 2002, petitione! file$ a Motion fo! Co!!ect Co&putation, p!a/ing that his bac5"ages

be co&pute$ f!o& the $ate of his $is&issal on 4anua!/ 2>, 16 up to the finalit/ of the Resolution

of the %up!e&e Cou!t on Ma/ 26, 2002. 11 @pon !eco&putation, the Co&putation an$ E:a&ination

@nit of the NRC a!!ive$ at an up$ate$ a&ount in the su& of P>61,320.31.12

n #ece&be! 2, 2002, a 9!it of E:ecution13

"as issue$ b/ the abo! A!bite! o!$e!ing the %he!iff tocollect f!o& !espon$ents the total a&ount of P>61,320.31. Respon$ents file$ a Motion to uash 9!it

of E:ecution, a!guing, a&ong othe! things, that since the abo! A!bite! a"a!$e$ sepa!ation pa/

of P<2,'<.-< an$ li&ite$ bac5"ages of P-,33.3<, no &o!e !eco&putation is !e?ui!e$ to be &a$e

of the sai$ a"a!$s. he/ clai&e$ that afte! the $ecision beco&es final an$ e:ecuto!/, the sa&e

cannot be alte!e$ o! a&en$e$ an/&o!e.1> n 4anua!/ 13, 2003, the abo! A!bite! issue$ an

!$e! 1- $en/ing the &otion. hus, an Alias 9!it of E:ecution1< "as issue$ on 4anua!/ 1>, 2003.

9



Respon$ents again appeale$ befo!e the NRC, "hich on 4une 30, 2003 issue$ a

Resolution16 g!anting the appeal in favo! of the !espon$ents an$ o!$e!e$ the !eco&putation of the

7u$g&ent a"a!$.

n August 20, 2003, an Ent!/ of 4u$g&ent "as issue$ $ecla!ing the Resolution of the NRC to be

final an$ e:ecuto!/. Conse?uentl/, anothe! p!e*e:ecution confe!ence "as hel$, but !espon$ents

faile$ to appea! on ti&e. Mean"hile, petitione! &ove$ that an Alias 9!it of E:ecution be issue$ toenfo!ce the ea!lie! !eco&pute$ 7u$g&ent a"a!$ in the su& of P>61,320.31.1'

he !eco!$s of the case "e!e again fo!"a!$e$ to the Co&putation an$ E:a&ination @nit fo!

!eco&putation, "he!e the 7u$g&ent a"a!$ of petitione! "as !eassesse$ to be in the total a&ount of

onl/ P1>6,-<0.1.

Petitione! then &ove$ that a "!it of e:ecution be issue$ o!$e!ing !espon$ents to pa/ hi& the o!iginal

a&ount as $ete!&ine$ b/ the abo! A!bite! in his #ecision $ate$ ctobe! 1-, 1', pen$ing the

finalco&putation of his bac5"ages an$ sepa!ation pa/.

n 4anua!/ 1>, 2003, the abo! A!bite! issue$ an Alias 9!it of E:ecution to satisf/ the 7u$g&ent

a"a!$ that "as $ue to petitione! in the a&ount of P1>6,-<0.1, "hich petitione! eventuall/ !eceive$.

Petitione! then file$ a Manifestation an$ Motion p!a/ing fo! the !e*co&putation of the &oneta!/

a"a!$ to inclu$e the app!op!iate inte!ests. 1

n Ma/ 10, 200-, the abo! A!bite! issue$ an !$e! 20 g!anting the &otion, but onl/ up to the a&ount

of P11,>-.63. he abo! A!bite! !easone$ that it is the ctobe! 1-, 1' #ecision that shoul$ be

enfo!ce$ consi$e!ing that it "as the one that beca&e final an$ e:ecuto!/. ;o"eve!, the abo! A!bite!

!easone$ that since the $ecision states that the sepa!ation pa/ an$ bac5"ages a!e co&pute$ onl/

up to the p!o&ulgation of the sai$ $ecision, it is the a&ount of P1-',1.2 that shoul$ be e:ecute$.

hus, since petitione! al!ea$/ !eceive$ P1>6,-<0.1, he is onl/ entitle$ to the balance

of P11,>-.63.

Petitione! then appeale$ befo!e the NRC,21 "hich appeal "as $enie$ b/ the NRC in its

Resolution22 $ate$ %epte&be! 26, 200<. Petitione! file$ a Motion fo! Reconsi$e!ation, but it "as

li5e"ise $enie$ in the Resolution23$ate$ 4anua!/ 31, 2006.

Agg!ieve$, petitione! then sought !ecou!se befo!e the CA, $oc5ete$ as CA*+.R. %P No. '-1.

n %epte&be! 23, 200', the CA !en$e!e$ a #ecision2>

$en/ing the petition. he CA opine$ that sincepetitione! no longe! appeale$ the ctobe! 1-, 1' #ecision of the abo! A!bite!, "hich al!ea$/

beca&e final an$ e:ecuto!/, a belate$ co!!ection the!eof is no longe! allo"e$. he CA state$ that

the!e is nothing left to be $one e:cept to enfo!ce the sai$ 7u$g&ent. Conse?uentl/, it can no longe!

be &o$ifie$ in an/ !espect, e:cept to co!!ect cle!ical e!!o!s o! &ista5es.

Petitione! file$ a Motion fo! Reconsi$e!ation, but it "as $enie$ in the Resolution 2- $ate$ ctobe! ,

200.

;ence, the petition assigning the lone e!!o!8

9; #@E RE%PEC, ;E ;NRABE C@R APPEA% %ER@% ERRE#,

CMME# +RADE AB@%E #%CREN AN# #EC#E# CNRAR A9 N

@P;#N+ ;E @E%NE# RE%@N% ;E NRC 9;C;, N @RN, %@%ANE#;E MA 10, 200- R#ER ABR ARBER MA+A MAN+ ;E #%P%DE PRN

;E CBER 1-, 1' #EC%N ABR ARBER @%RA %@B%ERDEN AN

PNN EFPRE%%E# N ;E B# ;E %AME #EC%N.2<

Petitione! a!gues that not"ithstan$ing the fact that the!e "as a co&putation of bac5"ages in the

abo! A!bite!s $ecision, the sa&e is not final until !einstate&ent is &a$e o! until finalit/ of the

$ecision, in case of an a"a!$ of sepa!ation pa/. Petitione! &aintains that consi$e!ing that the

ctobe! 1-, 1' $ecision of the abo! A!bite! $i$ not beco&e final an$ e:ecuto!/ until the Ap!il 16,

2002 Resolution of the %up!e&e Cou!t in +.R. No. 1-1332 "as ente!e$ in the Boo5 of Ent!ies on

1;



Ma/ 26, 2002, the !ec5oning point fo! theco&putation of the bac5"ages an$ sepa!ation pa/ shoul$

be on Ma/ 26, 2002 an$ not "hen the $ecision of the abo! A!bite! "as !en$e!e$ on ctobe! 1-,

1'. u!the!, petitione! posits that he is also entitle$ to the pa/&ent of inte!est f!o& the finalit/ of

the $ecision until full pa/&ent b/ the !espon$ents.

n thei! pa!t, !espon$ents asse!t that since onl/ sepa!ation pa/ an$ li&ite$ bac5"ages "e!e

a"a!$e$ to petitione! b/ the ctobe! 1-, 1' $ecision of the abo! A!bite!, no &o!e !eco&putationis !e?ui!e$ to be &a$e of sai$ a"a!$s. Respon$ents insist that since the $ecision clea!l/ state$ that

the sepa!ation pa/ an$ bac5"ages a!e Gco&pute$ onl/ up to HtheI p!o&ulgation of this $ecision,J an$

consi$e!ing that petitione! no longe! appeale$ the $ecision, petitione! is onl/ entitle$ to the a"a!$ as

co&pute$ b/ the abo! A!bite! in the total a&ount of P1-',1.2. Respon$ents a$$e$ that it "as

onl/ $u!ing the e:ecution p!ocee$ings that the petitione! ?uestione$ the a"a!$, long afte! the

$ecision ha$ beco&e final an$ e:ecuto!/. Respon$ents conten$ that to allo" the fu!the!

!eco&putation of the bac5"ages to be a"a!$e$ to petitione! at this point of the p!ocee$ings "oul$

substantiall/ va!/ the $ecision of the abo! A!bite! as it violates the !ule on i&&utabilit/ of

7u$g&ents.

he petition is &e!ito!ious.

he instant case is si&ila! to the case of Session Delights Ice Cream and Fast Foods . Co!rt o"

Appeals (%i:th #ivision),26 "he!ein the issue sub&itte$ to the Cou!t fo! !esolution "as the p!op!iet/

of the co&putation of the a"a!$s &a$e, an$ "hethe! this violate$ the p!inciple of i&&utabilit/ of

7u$g&ent. i5e in the p!esent case, it "as a $istinct featu!e of the 7u$g&ent of the abo! A!bite! in

the above*cite$ case that the $ecision al!ea$/ p!ovi$e$ fo! the co&putation of the pa/able

sepa!ation pa/ an$ bac5"ages $ue an$ $i$ not fu!the! o!$e! the co&putation of the &oneta!/

a"a!$s up to the ti&e of the finalit/ of the 7u$g&ent. Also in %ession #elights, the $is&isse$

e&plo/ee faile$ to appeal the $ecision of the labo! a!bite!. he Cou!t cla!ifie$, thus8

n conc!ete te!&s, the ?uestion is "hethe! a !e*co&putation in the cou!se of e:ecution of the labo!

a!bite!s o!iginal co&putation of the a"a!$s &a$e, pegge$ as of the ti&e the $ecision "as !en$e!e$

an$ confi!&e$ "ith &o$ification b/ a final CA $ecision, is legall/ p!ope!. he ?uestion is pose$,

given that the petitione! $i$ not i&&e$iatel/ pa/ the a"a!$s state$ in the o!iginal labo! a!bite!s

$ecision= it $ela/e$ pa/&ent because it continue$ "ith the litigation until final 7u$g&ent at the CAlevel.

A sou!ce of &isun$e!stan$ing in i&ple&enting the final $ecision in this case p!ocee$s f!o& the "a/

the o!iginal labo! a!bite! f!a&e$ his $ecision. he $ecision consists essentiall/ of t"o pa!ts.

he fi!st is that pa!t of the $ecision that cannot no" be $ispute$ because it has been confi!&e$ "ith

finalit/. his is the fin$ing of the illegalit/ of the $is&issal an$ the a"a!$s of sepa!ation pa/ in lieu of

!einstate&ent, bac5"ages, atto!ne/s fees, an$ legal inte!ests.

he secon$ pa!t is the co&putation of the a"a!$s &a$e. n its face, the co&putation the labo!

a!bite! &a$e sho"s that it "as ti&e*boun$ as can be seen f!o& the figu!es use$ in the co&putation.

his pa!t, being &e!el/ a co&putation of "hat the fi!st pa!t of the $ecision establishe$ an$ $ecla!e$,

can, b/ its natu!e, be !e*co&pute$. his is the pa!t, too, that the petitione! no" posits shoul$ no

longe! be !e*co&pute$ because the co&putation is al!ea$/ in the labo! a!bite!s $ecision that the CAha$ affi!&e$. he public an$ p!ivate !espon$ents, on the othe! han$, posit that a !e*co&putation is

necessa!/ because the !elief in an illegal $is&issal $ecision goes all the "a/ up to !einstate&ent if

!einstate&ent is to be &a$e, o! up to the finalit/ of the $ecision, if sepa!ation pa/ is to be given in

lieu !einstate&ent.

hat the labo! a!bite!s $ecision, at the sa&e ti&e that it foun$ that an illegal $is&issal ha$ ta5en

place, also &a$e a co&putation of the a"a!$, is un$e!stan$able in light of %ection 3, Rule D of the

then NRC Rules of P!oce$u!e "hich !e?ui!es that a co&putation be &a$e. his %ection in pa!t

states8

11



HIhe abo! A!bite! of o!igin, in cases involving &oneta!/ a"a!$s an$ at all events, as fa! as

p!acticable, shall e&bo$/ in an/ such $ecision o! o!$e! the $etaile$ an$ full a&ount a"a!$e$.

Clea!l/ i&plie$ f!o& this o!iginal co&putation is its cu!!enc/ up to the finalit/ of the labo! a!bite!s

$ecision. As "e note$ above, this i&plication is appa!ent f!o& the te!&s of the co&putation itself,

an$ no ?uestion "oul$ have a!isen ha$ the pa!ties te!&inate$ the case an$ i&ple&ente$ the

$ecision at that point.;o"eve!, the petitione! $isag!ee$ "ith the labo! a!bite!s fin$ings on all counts K i.e., on the fin$ing

of illegalit/ as "ell as on all the conse?uent a"a!$s &a$e. ;ence, the petitione! appeale$ the case

to the NRC "hich, in tu!n, affi!&e$ the labo! a!bite!s $ecision. B/ la", the NRC $ecision is final,

!evie"able onl/ b/ the CA on 7u!is$ictional g!oun$s.

he petitione! app!op!iatel/ sought to nullif/ the NRC $ecision on 7u!is$ictional g!oun$s th!ough a

ti&el/ file$ Rule <- petition fo! ce!tio!a!i. he CA $ecision, fin$ing that NRC e:cee$e$ its autho!it/

in affi!&ing the pa/&ent of 13th &onth pa/ an$ in$e&nit/, lapse$ to finalit/ an$ "as subse?uentl/

!etu!ne$ to the labo! a!bite! of o!igin fo! e:ecution.

t "as at this point that the p!esent case a!ose. ocusing on the co!e illegal $is&issal po!tion of the

o!iginal labo! a!bite!s $ecision, the i&ple&enting labo! a!bite! o!$e!e$ the a"a!$ !e*co&pute$= he

appa!entl/ !ea$ the figu!es o!iginall/ o!$e!e$ to be pai$ to be the co&putation $ue ha$ the case

been te!&inate$ an$ i&ple&ente$ at the labo! a!bite!s level. hus, the labo! a!bite! !e*co&pute$ the

a"a!$ to inclu$e the sepa!ation pa/ an$ the bac5"ages $ue up to the finalit/ of the CA $ecision that

full/ te!&inate$ the case on the &e!its. @nfo!tunatel/, the labo! a!bite!s app!ove$ co&putation "ent

be/on$ the finalit/ of the CA $ecision (4ul/ 2, 2003) an$ inclu$e$ as "ell the pa/&ent fo! a"a!$s

the final CA $ecision ha$ $elete$ K specificall/, the p!opo!tionate 13th &onth pa/ an$ the in$e&nit/

a"a!$s. ;ence, the CA issue$ the $ecision no" ?uestione$ in the p!esent petition.

9e see no e!!o! in the CA $ecision confi!&ing that a !e*co&putation is necessa!/ as it essentiall/

consi$e!e$ the labo! a!bite!s o!iginal $ecision in acco!$ance "ith its basic co&ponent pa!ts as "e

$iscusse$ above. o !eite!ate, the fi!st pa!t contains the fin$ing of illegalit/ an$ its &oneta!/

conse?uences= the secon$ pa!t is the co&putation of the a"a!$s o! &oneta!/ conse?uences of the

illegal $is&issal, co&pute$ as of the ti&e of the labo! a!bite!s o!iginal $ecision.2'

Conse?uentl/, f!o& the above $is?uisitions, un$e! the te!&s of the $ecision "hich is sought to bee:ecute$ b/ the petitione!, no essential change is &a$e b/ a !eco&putation as this step is a

necessa!/ conse?uence that flo"s f!o& the natu!e of the illegalit/ of $is&issal $ecla!e$ b/ the abo!

A!bite! in that $ecision.2 A !eco&putation (o! an o!iginal co&putation, if no p!evious co&putation has

been &a$e) is a pa!t of the la" K specificall/, A!ticle 26 of the abo! Co$e an$ the establishe$

7u!isp!u$ence on this p!ovision K that is !ea$ into the $ecision. B/ the natu!e of an illegal $is&issal

case, the !eliefs continue to a$$ up until full satisfaction, as e:p!esse$ un$e! A!ticle 26 of the abo!

Co$e. he !eco&putation of the conse?uences of illegal $is&issal upon e:ecution of the $ecision

$oes not constitute an alte!ation o! a&en$&ent of the final $ecision being i&ple&ente$. he illegal

$is&issal !uling stan$s= onl/ the co&putation of &oneta!/ conse?uences of this $is&issal is

affecte$, an$ this is not a violation of the p!inciple of i&&utabilit/ of final 7u$g&ents.30

hat the a&ount !espon$ents shall no" pa/ has g!eatl/ inc!ease$ is a conse?uence that it cannotavoi$ as it is the !is5 that it !an "hen it continue$ to see5 !ecou!ses against the abo! A!bite!s

$ecision. A!ticle 26 p!ovi$es fo! the conse?uences of illegal $is&issal in no unce!tain te!&s,

?ualifie$ onl/ b/ 7u!isp!u$ence in its inte!p!etation of "hen sepa!ation pa/ in lieu of !einstate&ent is

allo"e$. 9hen that happens, the finalit/ of the illegal $is&issal $ecision beco&es the !ec5oning

point instea$ of the !einstate&ent that the la" $ec!ees. n allo"ing sepa!ation pa/, the final $ecision

effectivel/ $ecla!es that the e&plo/&ent !elationship en$e$ so that sepa!ation pa/ an$ bac5"ages

a!e to be co&pute$ up to that point.31

12



inall/, anent the pa/&ent of legal inte!est. n the lan$&a!5 case of Eastern Shipping Lines, Inc. .

Co!rt o" Appeals,32 the Cou!t lai$ $o"n the gui$elines !ega!$ing the &anne! of co&puting legal

inte!est, to "it8

. 9ith !ega!$ pa!ticula!l/ to an a"a!$ of inte!est in the concept of actual an$ co&pensato!/

$a&ages, the !ate of inte!est, as "ell as the acc!ual the!eof, is i&pose$, as follo"s8

1. 9hen the obligation is b!eache$, an$ it consists in the pa/&ent of a su& of &one/, i.e., a loan o! fo!bea!ance of &one/, the inte!est $ue shoul$ be that "hich &a/ have been stipulate$ in "!iting.

u!the!&o!e, the inte!est $ue shall itself ea!n legal inte!est f!o& the ti&e it is 7u$iciall/ $e&an$e$. n

the absence of stipulation, the !ate of inte!est shall be 12L pe! annu& to be co&pute$ f!o& $efault,

i.e., f!o& 7u$icial o! e:t!a7u$icial $e&an$ un$e! an$ sub7ect to the p!ovisions of A!ticle 11< of the

Civil Co$e.

2. 9hen an obligation, not constituting a loan o! fo!bea!ance of &one/, is b!eache$, an inte!est on

the a&ount of $a&ages a"a!$e$ &a/ be i&pose$ at the $isc!etion of the cou!t at the !ate of <L pe!

annu&. No inte!est, ho"eve!, shall be a$7u$ge$ on unli?ui$ate$ clai&s o! $a&ages e:cept "hen o!

until the $e&an$ can be establishe$ "ith !easonable ce!taint/. Acco!$ingl/, "he!e the $e&an$ is

establishe$ "ith !easonable ce!taint/, the inte!est shall begin to !un f!o& the ti&e the clai& is &a$e

7u$iciall/ o! e:t!a7u$iciall/ (A!t. 11<, Civil Co$e) but "hen such ce!taint/ cannot be so !easonabl/

establishe$ at the ti&e the $e&an$ is &a$e, the inte!est shall begin to !un onl/ f!o& the $ate the

7u$g&ent of the cou!t is &a$e (at "hich ti&e the ?uantification of $a&ages &a/ be $ee&e$ to have

been !easonabl/ asce!taine$). he actual base fo! the co&putation of legal inte!est shall, in an/

case, be on the a&ount finall/ a$7u$ge$.

3. 9hen the 7u$g&ent of the cou!t a"a!$ing a su& of &one/ beco&es final an$ e:ecuto!/, the !ate

of legal inte!est, "hethe! the case falls un$e! pa!ag!aph 1 o! pa!ag!aph 2, above, shall be 12L pe!

annu& f!o& such finalit/ until its satisfaction, this inte!i& pe!io$ being $ee&e$ to be b/ then an

e?uivalent to a fo!bea!ance of c!e$it. 33

Recentl/, ho"eve!, the Bang5o %ent!al ng Pilipinas Moneta!/ Boa!$ (B%P*MB), in its Resolution No.

6< $ate$ Ma/ 1<, 2013, app!ove$ the a&en$&ent of %ection 2 3> of Ci!cula! No. 0-, %e!ies of 1'2

an$, acco!$ingl/, issue$ Ci!cula! No. 6,3- %e!ies of 2013, effective 4ul/ 1, 2013, the pe!tinent

po!tion of "hich !ea$s8he Moneta!/ Boa!$, in its Resolution No. 6< $ate$ 1< Ma/ 2013, app!ove$ the follo"ing !evisions

gove!ning the !ate of inte!est in the absence of stipulation in loan cont!acts, the!eb/ a&en$ing

%ection 2 of Ci!cula! No. 0-, %e!ies of 1'28

Secto! 1. he !ate of inte!est fo! the loan o! fo!bea!ance of an/ &one/, goo$s o! c!e$its an$ the

!ate allo"e$ in 7u$g&ents, in the absence of an e:p!ess cont!act as to such !ate of inte!est, shall be

si: pe!cent (<L) pe! annu&.

Secto! ". n vie" of the above, %ubsection F30-.1 3< of the Manual of Regulations fo! Ban5s an$

%ections >30-.1,36 >30-%.33' an$ >303P.13 of the Manual of Regulations fo! Non*Ban5 inancial

nstitutions a!e he!eb/ a&en$e$ acco!$ingl/.

his Ci!cula! shall ta5e effect on 1 4ul/ 2013.

hus, f!o& the fo!egoing, in the absence of an e:p!ess stipulation as to the !ate of inte!est that"oul$ gove!n the pa!ties, the !ate of legal inte!est fo! loans o! fo!bea!ance of an/ &one/, goo$s o!

c!e$its an$ the !ate allo"e$ in 7u$g&ents shall no longe! be t"elve pe!cent (12L) pe! annu& K as

!eflecte$ in the case of Easte!n %hipping ines>0 an$ %ubsection F30-.1 of the Manual of

Regulations fo! Ban5s an$ %ections >30-.1, >30-%.3 an$ >303P.1 of the Manual of Regulations fo!

Non*Ban5 inancial nstitutions, befo!e its a&en$&ent b/ B%P*MB Ci!cula! No. 6 K but "ill no"

be si: pe!cent (<L) pe! annu& effective 4ul/ 1, 2013. t shoul$ be note$, nonetheless, that the ne"

!ate coul$ onl/ be applie$ p!ospectivel/ an$ not !et!oactivel/. Conse?uentl/, the t"elve pe!cent

13



(12L) pe! annu& legal inte!est shall appl/ onl/ until 4une 30, 2013. Co&e 4ul/ 1, 2013 the ne" !ate

of si: pe!cent (<L) pe! annu& shall be the p!evailing !ate of inte!est "hen applicable.

Co!olla!il/, in the !ecent case of A$vocates fo! !uth in en$ing, nc. an$ E$ua!$o B. lague! v.

Bang5o %ent!al Moneta!/ Boa!$,>1 this Cou!t affi!&e$ the autho!it/ of the B%P*MB to set inte!est

!ates an$ to issue an$ enfo!ce Ci!cula!s "hen it !ule$ that Gthe B%P*MB &a/ p!esc!ibe the &a:i&u&

!ate o! !ates of inte!est fo! all loans o! !ene"als the!eof o! the fo!bea!ance of an/ &one/, goo$s o! c!e$its, inclu$ing those fo! loans of lo" p!io!it/ such as consu&e! loans, as "ell as such loans &a$e

b/ pa"nshops, finance co&panies an$ si&ila! c!e$it institutions. t even autho!ies the B%P*MB to

p!esc!ibe $iffe!ent &a:i&u& !ate o! !ates fo! $iffe!ent t/pes of bo!!o"ings, inclu$ing $eposits an$

$eposit substitutes, o! loans of financial inte!&e$ia!ies.J

Nonetheless, "ith !ega!$ to those 7u$g&ents that have beco&e final an$ e:ecuto!/ p!io! to 4ul/ 1,

2013, sai$ 7u$g&ents shall not be $istu!be$ an$ shall continue to be i&ple&ente$ appl/ing the !ate

of inte!est fi:e$ the!ein.

To #ec$%t&'$te $!( )o# )&t&#e *&($!ce, t+e *&(e'!e '$( (o-! ! t+e c$e o) E$te#!

S+%%!* L!e" $#e $cco#(!*' 0o()e( to e0o( BSP2MB C#c&'$# No. 799, $

)o''o-3

. 9hen an obligation, !ega!$less of its sou!ce, i.e., la", cont!acts, ?uasi*cont!acts, $elicts o! ?uasi*

$elicts is b!eache$, the cont!aveno! can be hel$ liable fo! $a&ages. he p!ovisions un$e! itle FD

on G#a&agesJ of the Civil Co$e gove!n in $ete!&ining the &easu!e of !ecove!able $a&ages.

. 9ith !ega!$ pa!ticula!l/ to an a"a!$ of inte!est in the concept of actual an$ co&pensato!/

$a&ages, the !ate of inte!est, as "ell as the acc!ual the!eof, is i&pose$, as follo"s8

1. 9hen the obligation is b!eache$, an$ it consists in the pa/&ent of a su& of &one/,

i.e., a loan o! fo!bea!ance of &one/, the inte!est $ue shoul$ be that "hich &a/ have been stipulate$ in "!iting.

u!the!&o!e, the inte!est $ue shall itself ea!n legal inte!est f!o& the ti&e it is 7u$iciall/ $e&an$e$. n the

absence of stipulation, the !ate of inte!est shall be <L pe! annu& to be co&pute$ f!o& $efault, i.e., f!o&

7u$icial o! e:t!a7u$icial $e&an$ un$e! an$ sub7ect to the p!ovisions of A!ticle 11< of the Civil Co$e.

2. 9hen an obligation, not constituting a loan o! fo!bea!ance of &one/, is b!eache$, an

inte!est on the a&ount of $a&ages a"a!$e$ &a/ be i&pose$ at the $isc!etion of the cou!t at the !ate of <L

pe! annu&. No inte!est, ho"eve!, shall be a$7u$ge$ on unli?ui$ate$ clai&s o! $a&ages, e:cept "hen o! until

the $e&an$ can be establishe$ "ith !easonable ce!taint/. Acco!$ingl/, "he!e the $e&an$ is establishe$ "ith

!easonable ce!taint/, the inte!est shall begin to !un f!o& the ti&e the clai& is &a$e 7u$iciall/ o! e:t!a7u$iciall/

(A!t. 11<, Civil Co$e), but "hen such ce!taint/ cannot be so !easonabl/ establishe$ at the ti&e the $e&an$

is &a$e, the inte!est shall begin to !un onl/ f!o& the $ate the 7u$g&ent of the cou!t is &a$e (at "hich ti&e the

?uantification of $a&ages &a/ be $ee&e$ to have been !easonabl/ asce!taine$). he actual base fo! the

co&putation of legal inte!est shall, in an/ case, be on the a&ount finall/ a$7u$ge$.

3. 9hen the 7u$g&ent of the cou!t a"a!$ing a su& of &one/ beco&es final an$

e:ecuto!/, the !ate of legal inte!est, "hethe! the case falls un$e! pa!ag!aph 1 o! pa!ag!aph 2, above, shall be

<L pe! annu& f!o& such finalit/ until its satisfaction, this inte!i& pe!io$ being $ee&e$ to be b/ then an

e?uivalent to a fo!bea!ance of c!e$it. An$, in a$$ition to the above, 7u$g&ents that have beco&e final an$ e:ecuto!/ p!io! to 4ul/ 1, 2013,

shall not be $istu!be$ an$ shall continue to be i&ple&ente$ appl/ing the !ate of inte!est fi:e$

the!ein.

45EREFORE, p!e&ises consi$e!e$, the #ecision $ate$ %epte&be! 23, 200' of the Cou!t of

Appeals in CA*+.R. %P No. '-1, an$ the Resolution $ate$ ctobe! , 200 a!e RE6ERSED $!(

SET ASIDE. Respon$ents a!e !$e!e$ to Pa/ petitione!8

(1) bac5"ages co&pute$ f!o& the ti&e petitione! "as illegall/ $is&isse$ on 4anua!/ 2>, 16 up to

Ma/ 26, 2002, "hen the Resolution of this Cou!t in +.R. No. 1-1332 beca&e final an$ e:ecuto!/=

10



(2) sepa!ation pa/ co&pute$ f!o& August 10 up to Ma/ 26, 2002 at the !ate of one &onth pa/ pe!

/ea! of se!vice= an$

(3) inte!est of t"elve pe!cent (12L) pe! annu& of the total &oneta!/ a"a!$s, co&pute$ f!o& Ma/

26, 2002 to 4une 30, 2013 an$ si: pe!cent (<L) pe! annu& f!o& 4ul/ 1, 2013 until thei! full

satisfaction.

he abo! A!bite! is he!eb/ ORDERED to &a5e anothe! !eco&putation of the total &oneta!/benefits a"a!$e$ an$ $ue to petitione! in acco!$ance "ith this #ecision.

SO ORDERED.

SECOND DIVISION

IAINVEST AND, INC.,

P e ( * ( * o e r,

L ver&)& L

HON. CORT O PPEAS, PHIAIPPINE ERICN GENERA INSRNCE COPNF,

% PCIIC EIPENT CORPORTION,

1



R e & + o e ( &.

G.R. No.13898;

Pre&e("

PNO,

C#%*rm%,

STRILRTINEJ,

CAAE!O, SR.,

TING %

CHICOLNJRIO, !!.

Prom)/%(e"

Se+(ember 2;, 2;;

L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L

16



D E C I S I O N

CHICOLNJRIO, !."

T#*& *& % +e(*(*o 'or rev*e- o $er(*or%r* o' (#e De$*&*o[1] o' (#e Co)r( o' ++e%/&

%(e 27 %4 1999 %>rm* (#e *&m*&&%/ b4 (#e Re*o%/ Tr*%/ Co)r( o' %%(*,

r%$# 6,[2] o' (#e $om+/%*( 'or %m%e& @/e b4 */*ve&( A%, I$. B*/*ve&(

%%*&( #ere* +r*v%(e re&+oe(& P%$*@$ E?)*+me( Cor+or%(*o BPe$or+ %

P#*/*++*e mer*$% Geer%/ I&)r%$e Com+%4.

T#e e&&e(*%/ '%$(& o' (#e $%&e, %& re$o)(e b4 (#e (r*%/ $o)r(, %re %& 'o//o-&"

O 26 +r*/ 1978, */*ve&( A%, I$. BIAINVESTQ, 'or brev*(4, % $or+or%(*oe%e * (#e eve/o+me( % &%/e o' re&*e(*%/ &)b*v*&*o&, %-%re (o

e'e%( P%$*@$ E?)*+me( Cor+or%(*o BPCIICQ, 'or brev*(4 (#e eve/o+me( o'

*(& re&*e(*%/ &)b*v*&*o& $o&*&(* o' (-o B2 +%r$e/& o' /% /o$%(e %( P%4%(%&,

)eo C*(4, (#e (erm& % $o*(*o& o' -#*$# %re $o(%*e * % reeme(Q.

Be , Com+/%*(. To )%r%(ee *(& '%*(#')/ $om+/*%$e % +)r&)%( (o (#e

%reeme(, e'e%( P%$*@$ +o&(e (-o B2 S)re(4 o& * '%vor o' +/%*(*: -#*$#

-ere *&&)e b4 e'e%( P#*/*++*e mer*$% Geer%/ I&)r%$e BPHIAGENQ, 'or

brev*(4. Bee& % C, Com+/%*(.

No(-*(#&(%* (#ree e(e&*o& r%(e b4 +/%*(*: (o e'e%( P%$*@$, (#e /%((er'%*/e (o @*&# (#e $o(r%$(e -or&. Bee& G, I % , Com+/%*(. O 16

O$(ober 1979, +/%*(*: -ro(e e'e%( P%$*@$ %v*&* (#e /%((er o' *(& *(e(*o (o

(%eover (#e +roe$( % (o #o/ &%* e'e%( /*%b/e 'or %// %m%e& -#*$# *( #%

*$)rre % -*// *$)r (o @*&# (#e +roe$(. Be AQ, Com+/%*(.

O 26 O$(ober 1979, +/%*(*: &)bm*((e *(& $/%*m %%*&( e'e%( P#*/%me

)er *(& +er'orm%$e % )%r%(ee bo Be , Com+/%*( b)( P#*/%me

re')&e (o %$o-/ee *(& /*%b*/*(4 'or (#e &*m+/e re%&o (#%( *(& +r*$*+%/,

e'e%( P%$*@$, re')&e (o %$o-/ee /*%b*/*(4 (#ere'ore. He$e, (#*& %$(*o.

I e'e&e, e'e%( P%$*@$ $/%*m& (#%( *(& '%*/)re (o @*&# (#e $o(r%$(e -or -%&

)e (o *$/eme( -e%(#er % (#e '%$( (#%( &ever%/ *(em& o' @*&#e -or %

$#%e orer -#*$# +/%*(*: re')&e (o %$$e+( % +%4 'or $%)&e (#e *&r)+(*o o'

-or. S*$e (#e $o(r%$()%/ re/%(*o be(-ee +/%*(*: % e'e%( P%$*@$ $re%(e

% re$*+ro$%/ ob/*%(*o, (#e '%*/)re o' (#e +/%*(*: (o +%4 *(& +rore&&* b*//& e&(o+& *(

17



'rom em%* ')/@//me( o' -#%( *& *$)mbe( )+o e'e%( P%$*@$. T#e

%$?)*e&$e$e b4 +/%*(*: * r%(* (#ree e(e&*o& (o e'e%( P%$*@$ *&

/*e-*&e % -%*ver o' (#e 'ormer& r*#( (o $/%*m %4 %m%e& 'or (#e e/%4. )r(#er,

(#e )*/%(er%/ % vo/)(%r4 %$(*o o' +/%*(*: * +reve(* e'e%( P%$*@$ 'rom

$om+/e(* (#e -or #%& re/*eve (#e /%((er 'rom (#e ob/*%(*o o' $om+/e(* (#e

&%me.

O (#e o(#er #%, P#*/%me $o(e& (#%( (#e v%r*o)& %meme(& m%e o (#e

+r*$*+%/ $o(r%$( % (#e ev*%(*o& * (#e *m+/eme(%(*o (#ereo' -#*$# -ere

re&or(e (o b4 +/%*(*: % $oLe'e%( P%$*@$ -*(#o)( *(& Be'e%( P#*/%me&

-r*((e $o&e( (#ere(o, #%ve %)(om%(*$%//4 re/e%&e (#e /%((er 'rom %4 or %//

/*%b*/*(4 -*(#* (#e +)rv*e- % $o(em+/%(*o o' (#e $over%e o' (#e &)re(4 bo& *(

#%& *&&)e. +o %reeme( o' (#e +%r(*e& (o %++o*( % $omm*&&*oer (o %&&*&( (#e

$o)r( * re&o/v* (#e *&&)e& $o'ro(* (#e +%r(*e&, o 7 !)/4 1981, % orer -%&

*&&)e b4 (#e Pre&** !)e Se)o . Jo&% %m* r$#*(e$( (o*o

D*m%/%(% %& Co)r( Comm*&&*oer 'rom %mo (#e om*ee& &)bm*((e b4 (#e+%r(*e& (o $o)$( % o$)/%r *&+e$(*o % (o e(erm*e (#e %mo)( o' -or

%$$om+/*&#e b4 (#e e'e%( P%$*@$ % (#e %mo)( o' -or oe b4 +/%*(*: (o

$om+/e(e (#e +roe$(.

O 28 November 1980, (#e Co)r( re$e*ve (#e @*& m%e b4 (#e Co)r(

Comm*&&*oer. I %rr*v* %( #*& @*&, (#e Comm*&&*oer )&e (#e $o&(r)$(*o

o$)me(& +er(%** (o (#e +roe$( %& b%&*&. $$or* (o #*m, o be((er b%&*& *

(#e -or oe or )oe $o)/ be m%e o(#er (#% (#e $o(r%$( b*//*& %

+%4me(& m%e b4 bo(# +%r(*e& %& (#ere -%& o +ro+er +ro$e)re 'o//o-e *

(erm*%(* (#e $o(r%$(, /%$ o' *ve(or4 o' -or %$$om+/*&#e, %b&e$e o'%++ro+r*%(e re$or o' -or +rore&& B/oboo % *%e?)%(e o$)me(%(*o %

&4&(em o' $o&(r)$(*o m%%eme(.

%&e o (#e b*//*& o' e'e%( P%$*@$ % (#e +%4me(& m%e b4 +/%*(*:, (#e

-or %$$om+/*&#e b4 (#e 'ormer %mo)(e (o P11,788,282.0; -*(# (#e e$e+(*o

o' (#e /%&( b*//* B-#*$# -%& o( %$(e )+o or +ro$e&&e b4 +/%*(*: * (#e %mo)(

o' P800,396.02. T#e (o(%/ %mo)( o' -or /e'( (o be %$$om+/*&#e b4 +/%*(*: -%&

b%&e o (#e or**%/ $o(r%$( %mo)( /e&& v%/)e o' -or %$$om+/*&#e b4

e'e%( P%$*@$ * (#e %mo)( o' P681,717.8 B12,07;,;;;L11,788,282.02.

& re%r& (#e %//ee re+%*r& m%e b4 +/%*(*: o (#e $o&(r)$(*o e@$*e$*e&, (#e

Co)r( Comm*&&*oer 'o) o &)>$*e( b%&*& (o )&(*'4 (#e &%me. O (#e o(#er

#%, #e 'o) (#e %*(*o%/ -or oe b4 e'e%( P%$*@$ * (#e %mo)( o'

P077,;;;.;; (o be * orer.

18



O ;1 +r*/ 198, +/%*(*: @/e *(& obe$(*o& (o (#e Comm*&&*oer& Re&o/)(*o o

(#e 'o//o-* ro)&"

% %*/)re o' (#e $omm*&&*oer (o $o)$( % o*( &)rve4 -#*$# %$$or*

(o (#e /%((er *& **&+e&%b/e (o %rr*ve %( % e?)*(%b/e % '%*r re&o/)(*o o' (#e*&&)e& be(-ee (#e +%r(*e&K

b T#e $o&( e&(*m%(e& o' (#e $omm*&&*oer -ere b%&e o +)re

$oe$()re& % $o(r%r4 (o (#e ev*e$eK %,

$ T#e $omm*&&*oer m%e $o$/)&*o& o' /%- -#*$# -ere be4o #*&

%&&*me( or $%+%b*/*(*e&.

I *(& $omme(, e'e%( P%$*@$ %//ee (#%( (#e '%*/)re (o $o)$( o*( &)rve4

-%& )e (o +/%*(*:& re')&%/ (o $oo+er%(e. I '%$(, *( -%& e'e%( P%$*@$ -#o

**(*%(e (#e *e% o' $o)$(* % o*( &)rve4 % *ve(or4 %(* b%$ 27

November 1983. eve %&&)m* (#%( % o*( &)rve4 -ere $o)$(e, *( -o)/

#%ve bee % eer$*&e * ')(*/*(4 be$%)&e %// +#4&*$%/ (r%$e& o' (#e %$()%/ $o*(*o&

(#e ob(%** %( (#e (*me re/ev%( (o (#e $%&e #% %/re%4 bee ob/*(er%(e b4

+/%*(*:.

O 1 ))&( 199;, % o(*o 'or !)me( %&e o (#e Comm*&&*oer& Re&o/)(*o

-%& @/e b4 e'e%( P%$*@$.

O 11 O$(ober 199;, +/%*(*: @/e *(& o++o&*(*o (#ere(o -#*$# -%& b)( % re#%&# o'

obe$(*o& (o (#e $omm*&&*oer& re+or( e%r/*er @/e b4 &%* +/%*(*:.[3]

O (#e b%&*& o' (#e $omm*&&*oer& re+or(, (#e (r*%/ $o)r( *&m*&&e */*ve&(&$om+/%*( %& -e// %& Pe$or+& $o)(er$/%*m. I( #e/"

I re&o/v* (#*& $%&e, (#e $o)r( ob&erve& (#%( (#e %++o*(me( o' % Comm*&&*oer

-%& % o*( )er(%* %mo (#e +%r(*e&. T#e @*& o' '%$(& o' (#e

Comm*&&*oer &#o)/ (#ere'ore o( o/4 be $o$/)&*ve b)( @%/ %mo (#e +%r(*e&.

T#e $o)r( (#ere'ore %ree& -*(# (#e $omm*&&*oer& @*& -*(# re&+e$( (o

19



1. Co&( (o re+%*r e@$*e$4 or e'e$( P32,320.;2

2. +%* b%/%$e o' -or oe b4 e'e%( L P1,939,191.67

3. *(*o%/ -or$#%e orer B)e (o e'e%( P07,;;;.;;

T#e )+%* b%/%$e )e e'e%( (#ere'ore *& P1,939,191.67. To (#*& %mo)(

&#o)/ be %e %*(*o%/ -or +er'orme b4 e'e%( %( +/%*(*:& *&(%$e *

(#e &)m o' P07,;;;.;;. 'rom (#*& (o(%/ o' P2,010,191.67 &#o)/ be e)$(e

(#e &)m o' P32,320.;1 -#*$# *& (#e $o&( (o re+%*r (#e e@$*e$4 or e'e$( * (#e

-or oe b4 e'e%(. T#e $omm*&&*oer %rr*ve %( (#e @)re o' P32,320.;1 b4

e((* (#e %ver%e be(-ee +/%*(*:& $/%*m o' P78,;8;.37 % e'e%(&

%//e%(*o o' P3;6,67.67. T#e %mo)( )e (o e'e%( +er (#e $omm*&&*oer&

re+or( *& (#ere'ore P1,881,867.66.

/(#o)# (#e &%* %mo)( o' P1,881,867.66 -o)/ be o-* (o e'e%( P%$*@$,

(#e '%$( rem%*& (#%( &%* e'e%( -%& * e/%4 &*$e +r*/ 2, 1979. T#e (#*r

e(e&*o %reeme( o' Se+(ember 1, 1979 *& ver4 $/e%r * (#*& re%r. T#e

+er(*e( +%r%r%+#& re%"

% Fo) -*// $om+/e(e %// (#e )@*&#e -or& o( /%(er (#% O$(. 1, 1979. I( *&

%ree % )er&(oo (#%( (#*& %(e &#%// DEINITEAF be (#e AST % INA

e(e&*o U (#ere -*// be o ')r(#er e(e&*o 'or %4 $%)&e -#%(&oever.

b e %re -*//* (o -%*ve %// +e%/(*e& 'or e/%4 -#*$# #%ve %$$r)e &*$e +r*/

2, 1979 +rov*e (#%( 4o) %re %b/e (o @*&# %// (#e *(em& o' (#e $o(r%$(e -or&

%& +er rev*&e CPK o(#er-*&e 4o) &#%// $o(*)e (o be /*%b/e (o +%4 (#e +e%/(4 )+

(o (#e (*me (#%( %// (#e $o(r%$(e -or& &#%// #%ve bee %$()%//4 @*&#e, *

%*(*o (o o(#er %m%e& -#*$# -e m%4 &):er b4 re%&o o' (#e e/%4& *$)rre.

De'e%( P%$*@$ (#ere'ore be$%me /*%b/e 'or e/%4 -#e *( * o( @*&# (#e +roe$(

o (#e %(e %ree o O$(ober 1, 1979. T#e $o)r( #o-ever, @& (#e $/%*m o'

P3,99;,;;;.;; * (#e 'orm o' +e%/(4 b4 re%&o o' e/%4 BP1,;;;.;;%4 'rom +r*/2, 1979 (o !%. 1, 198; (o be e$e&&*ve. 'or'e*()re o' (#e %mo)( )e

e'e%( 'rom +/%*(*: %++e%r& (o be % re%&o%b/e +e%/(4 'or (#e e/%4 * @*&#*

(#e +roe$( $o&*er* (#e %mo)( o' -or %/re%4 +er'orme % (#e '%$( (#%(

+/%*(*: $o&e(e (o (#ree +r*or e(e&*o&.

2;



T#e 'oreo* $o&*ere, (#*& $%&e *& *&m*&&e. T#e $o)(er$/%*m *&

/*e-*&e *&m*&&e.

No Co&(&.[0]

T#e Co)r( o' ++e%/&, @* o rever&*b/e error * (#e %++e%/e e$*&*o, %>rme

(#e &%me.

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e$%e&, -e (%e o(e o' Pe$or+& o- r*ev%$e. rom *(& Comme( %

emor%)m, Pe$or+, /*e-*&e, &ee& %>rm%(*ve re/*e' 'rom (#*& Co)r( b4 +r%4*

(#%( o( o/4 &#o)/ (#e *&(%( $%&e be *&m*&&e 'or /%$ o' mer*(, b)( (#%(

*/*ve&( &#o)/ /*e-*&e be m%e (o +%4 -#%( (#e Co)r( Comm*&&*oer 'o) -%&

)e e'e%(Q * (#e (o(%/ %mo)( o' P2,976,663.6 +/)& 12< *(ere&( 'rom 1979

)(*/ ')// +%4me( (#ereo' +/)& %((ore4& 'ee&.Q[20] Pe$or+, #o-ever, $%o(

re$over (#%( -#*$# *( &ee& %& -e #% %/re%4 e*e, * % Re&o/)(*o %(e 21 !)e

2;;;, *(& o- +e(*(*o 'or rev*e- o' (#e 27 %4 1999 e$*&*o o' (#e Co)r( o'

++e%/&. T#)&, %& '%r %& Pe$or+ *& $o$ere, (#e r)/* o' (#e Co)r( o' ++e%/& #%&%/re%4 %((%*e @%/*(4 % $% o /oer be *&()rbe.

HEREORE, +rem*&e& $o&*ere, (#e De$*&*o o' (#e Co)r( o' ++e%/& %(e 27

%4 1999 *& IRED. No +roo)$eme( %& (o $o&(&.

SO ORDERED.

27

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