Batchnumber:2,Casenumber:4,Preparedby:KhamiyaSison

KarenSalvacionVs.CentralBank
GR No. 94723 - - 2017-07-14

FACTS:
GregBartelli,anAmericantourist,wasarrestedforcommittingfourcountsofrapeandserious
illegaldetentionagainstKarenSalvacion.Policerecoveredfromhimseveraldollarchecksanda
dollaraccountintheChinaBankingCorp.Hewas,however,abletoescapefromprison.Inacivil
casefiledagainsthim,thetrialcourtawardedSalvacionmoral,exemplaryandattorneysfees
amountingtoalmostP1,000,000.00.

SalvaciontriedtoexecutethejudgmentonthedollardepositofBartelliwiththeChinaBanking
Corp.butthelatterrefusedarguingthatSection11ofCentralBankCircularNo.960exempts
foreigncurrencydepositsfromattachment,garnishment,oranyotherorderorprocessofany
court,legislativebody,governmentagencyoranyadministrativebodywhatsoever.Salvacion
thereforefiledthisactionfordeclaratoryreliefintheSupremeCourt.

ISSUE:
WhetherornotSection113ofCentralBankCircularNo.960andSection8ofRepublicActNo.
6426,asamendedbyPD1246,otherwiseknownastheForeignCurrencyDepositActbemade
applicabletoaforeigntransient?

HELD:
NO.

TheprovisionsofSection113ofCentralBankCircularNo.960andPDNo.1246,insofarasit
amendsSection8ofRepublicActNo.6426,areherebyheldtobeINAPPLICABLEtothiscase
becauseofitspeculiarcircumstances.Respondentsareherebyrequiredtocomplywiththewritof
executionissuedinthecivilcaseandtoreleasetopetitionersthedollardepositofBartelliinsuch
amountaswouldsatisfythejudgment.

SupremeCourtruledthatthequestionedlawmakesfutilethefavorablejudgmentandawardof
damagesthatSalvacionandherparentsfullydeserve.
TheSCadoptedthecommentoftheSolicitorGeneralwhoarguedthattheOffshoreBanking
SystemandtheForeignCurrencyDepositSystemweredesignedtodrawdepositsfromforeign
lendersandinvestorsand,subsequently,togivethelatterprotection.However,theforeign
currencydepositmadebyatransientoratouristisnotthekindofdepositencouragedbyPDNos.
1034and1035andgivenincentivesandprotectionbysaidlawsbecausesuchdepositorstaysonly
forafewdaysinthecountryand,therefore,willmaintainhisdepositinthebankonlyforashort


time.ConsideringthatBartelliisjustatouristoratransient,heisnotentitledtotheprotectionof
Section113ofCentralBankCircularNo.960andPDNo.1246againstattachment,garnishment
orothercourtprocesses.
Further,theSCsaid:Infine,theapplicationofthelawdependsontheextentofitsjustice.
Eventually,ifwerulethatthequestionedSection113ofCentralBankCircularNo.960which
exemptsfromattachment,garnishment,oranyotherorderorprocessofanycourt,legislative
body,governmentagencyoranyadministrativebodywhatsoever,isapplicabletoaforeign
transient,injusticewouldresultespeciallytoacitizenaggrievedbyaforeignguestlikeaccused
GregBartelli.
ThiswouldnegateArticle10oftheNewCivilCodewhichprovidesthatincaseofdoubtinthe
interpretationorapplicationoflaws,itispresumedthatthelawmakingbodyintendedrightand
justicetoprevail.