Case Digest: RAMON J. QUISUMBING v. SANDIGANBAYAN et al.

RAMON J. QUISUMBING v. SANDIGANBAYAN et al.

571 SCRA 7 (2008), SECOND DIVISION

The Presidential Commission on Good Governance (PCGG) filed a complaint before the Sandiganbayan for recovery, conveyance and accounting of various properties and assets of Benjamin Romualdez, et. al. Among the properties subject of the complaint are those of the Philippine Journalist Inc. (PJI) including untitled parcels of land situated in Mabini, Batangas (Mabini lots). During the pendency of the case, then PCGG- appointed members of the PJI Board of Directors, executed a Contract of Sale and a Deed of Absolute Conveyance covering the Mabini lots in favor of petitioner Ramon Quisumbing. Said Deeds were in the nature of management contracts. The Sandiganbayan nullified said management contracts. Jaime Cura, then President of the PJI who was the signatory to the contracts, assailed via certiorari the Sandiganbayan Resolution. Sandiganbayan held that PJI is a sequestered corporation and all its properties and assets are considered as under custodia legis.

PCGG and PJI filed before the Sandiganbayan a complaint against Quisumbing and the PCGG-appointed PJI members of the Board, for reconveyance of the Mabini lots. Quisumbing filed a Motion to Dismiss on the ground of lack of cause of action on the part of the PCGG and the Republic. The Sandiganbayan denied Quisumbing’s Motion to Dismiss for lack of merit.

ISSUES:

Whether or not the Sandiganbayan erred in finding that the Republic is the real party in interest

HELD:

Sec. 2 of Rule 3 of the Revised Rules of Court provides that, “a real party in interest is the party who stands to be benefited or injured by the judgment in the suit, or the party entitled to the avails of the suit. Unless otherwise authorized by law or these Rules, every action must be prosecuted or defended in the name of the real party in interest”.

“Interest” within the meaning of the immediately-quoted Rule means material interest or an interest in issue to be affected by the decree, as distinguished from mere interest in the question involved or a mere incidental interest. Otherwise stated, the Rule refers to a real or present substantial interest as distinguished from a mere expectancy, or a future, contingent, subordinate or consequential interest. As a general rule, one who has no right or interest to protect cannot invoke the jurisdiction of a court as a party-plaintiff in an action; if he does, the suit is dismissible on the ground of lack of cause of action.

Prescinding from these precepts, the Court holds that, contrary to Quisumbing’s assertion, the Republic is a real party in interest in Civil Case No. 0172. Quisumbing’s arguments that the Republic’s failure to pray for the reconveyance to it of the Mabini lots reflects its not being a real party in interest, and that since PJI is already represented by the PCGG, it is superfluous for the Republic to be a co-plaintiff fail.

The purpose of going after the assets and properties of the deposed President et al. is to protect the interests of the Filipino people and the Government, on the premise that those assets and properties were illegally acquired with the use of public funds or government resources or by taking advantage of their power. Hence, in filing the action for reconveyance, the Republic, through the PCGG, is protecting its interests in the Mabini lots owned by PJI which, as earlier determined by the Court, is a sequestered corporation. As the Court cautioned in Meralco v. Sandiganbayan, the deterioration and disappearance of sequestered assets “cannot be allowed to happen, unless there is a final adjudication and disposition of the issue of whether they are ill-gotten or not, since they may result in damage or prejudice to the Republic.”