LABOR LAW

Lima Land, Inc. vs. Cuevas G.R. No. 169523 June 16, 2010 621 SCRA 36 Labor Law; Due Process; The essence of due process is simply an opportunity to be heard or, as applied to administrative proceedings, an opportunity to explain ones side or an opportunity to seek a reconsideration of the action or ruling complained of. Same; Same; Termination of Employment; A dismissed employee is not required to prove his innocence of the charges leveled against him by his employer. The determination of the existence and sufficiency of a just cause must be exercised with fairness and in good faith and after observing due process. Korean Air Co., Ltd. Vs. Yuson G.R. No. 170369 June 16, 2010 621 SCRA 52 Labor Law; Retirement; Where an employee avails of optional retirement under Article 287 of the Labor Code, her claim for benefit under the companys early retirement program (ERP) becomes moot. Same; Same; Management Prerogatives; Approval of applications for early retirement program (ERP) is within the employers management prerogatives the exercise of management prerogative is valid as long as it is not done in a malicious, harsh, oppressive, vindictive, or wanton manner.

Ang vs. Philippine National Bank G.R. No. 178762 June 16, 2010 621 SCRA 120 Labor Law; Termination of Employment; Government-Owned and Controlled Corporations; Philippine National Bank; While the Philippine National Bank (PNB) began as a government corporation, it did not mean that its corporate being ceased and was subsequently reestablished when it was privatized it remained the same corporate entity before, during, and after the change over with no break in its life as a corporation, consequently the offenses that an employee committed against the bank before its privatization continued to be offenses against the bank after its privatization.

Same; Same; Same; Same; Although the transformation of the Philippine National Bank (PNB) from a government-owned corporation to a private one did not result in a break in its life as juridical person, the same idea of continuity cannot be said of its employees such privatization cannot deprive the government employees involved of their accrued benefits or compensation Velasco vs. Transit Automotive Supply, Inc. G.R. No. 171327 June 18, 2010 621 SCRA 275 Labor Law; Appeals; The Court of Appeals may review the factual findings of the National Labor Relations Commission (NLRC) and reverse its ruling if it finds that the decision of the NLRC lacks substantial basis. Bank of the Philippine Islands vs. National Labor Relations Commission (First Division) G.R. No. 179801 June 18, 2010 621 SCRA 283 Labor Law; Termination of Employment; Separation Pay; Social Justice; Separation pay shall be allowed as a measure of social justice only in those instances where the employee is validly dismissed for causes other than serious misconduct, willful disobedience, gross and habitual neglect of duty, fraud or willful breach of trust, commission of a crime against the employer or his family, or those reflecting on his moral character if an employee has been dismissed for a just cause under Article 282 of the Labor Code, he is not entitled to separation pay. Same; Same; Loss of Trust and Confidence; It is significant to stress that for there to be a valid dismissal based on loss of trust and confidence, the breach of trust must be willful, meaning it must be done intentionally, knowingly, and purposely, without justifiable excuse. Southeastern Shipping Group, Ltd. Vs. Navarra, Jr. G.R. No. 167678 June 22, 2010 621 SCRA 361 Labor Law; Overseas Filipino Workers; Seafarers; Money Claims; Prescription; Article 291 of the Labor Code covers all money claims from employeremployee relationship it is not limited to money claims recoverable under the Labor Code, but applies also to claims of overseas contract workers. Same; Same; Same; Death Benefits; The death of a seaman during the term of employment makes the employer liable to his heirs for death compensation benefits, but

if seaman dies after the termination of his contract of employment, his beneficiaries are not entitled to the death benefits. Same; Same; Same; Same; While the Court adheres to the principle of liberality in favor of the seafarer in construing the Standard Employment Contract, it cannot allow claims for compensation based on surmises.

POLITICAL LAW
Tolentino-Fuentes vs. Galindez A.M. No. P-0702410 June 18, 2010 621 SCRA 189 Court Personnel; Process Servers; Administrative Law; A process server has the duty to ensure that court notices are properly server to the parties. Same; Same; Same; A process server is liable for simple neglect of duty for failure to serve court notices properly simple neglect of duty is failure to give attention to a required task and it signifies disregard of duty due to carelessness or indifference. Office of the Court Administrator vs. Caya A.M. No. P-09-2632 June 18, 2010 621 SCRA 221 Courts; Court Personnel; Court employees are supposed to be well-mannered, civil and considerate in their actuations, both in their relations with co-workers and the transacting public boorishness, foul language, and any misbehavior in court premises diminish its sanctity and dignity. Same; Same; Being the victim of malicious rumors or unfounded accusations cannot justify resorting to physical violence against a co-worker. Same; Same; Administrative Proceedings; Due Process; Where a respondents Comment in an administrative case constituted a counter-complaint against the complainant, who was then able to file a Reply, allowing the latter to present her defense to the counter-complaint, there was no violation of her right Chamber of Real Estate and Builders Associations, Inc. (CREBA) vs. Secretary of Agrarian Reform G.R. No. 183409 June 18, 2010 621 SCRA 295

Same; Same; Even reclassification of agricultural lands by way of Presidential Proclamation to non-agricultural uses, such as school sites, needs conversion clearance from the Department of Agrarian Reform (DAR). We reiterate that reclassification is different from conversion; Any reclassification of agricultural lands to residential, commercial, industrial or other non-agricultural uses either by the Local Government Units (LGUs) or by way of Presidential Proclamations enacted on or after 15 June 1988 must undergo the process of conversion, despite having undergone reclassification, before agricultural lands may be used for other purposes. Estampa, Jr. vs. City Government of Davao G.R. No. 190681 June 21, 2010 621 SCRA 350 Administrative Law; Public Officers; Administrative Code of 1987 (E.O. 292); Due Process;Executive Order No. 292 allows the heads of local units, like the mayor, the authority to initiate administrative actions against subordinate officials or employees even without the complaints being subscribed and sworn to. Same; Same; Medical Health Officers; Local Government Code; The local government code provides that a government health officer has the duty, among others, to be in the frontline of the delivery of health services, particularly during and in the aftermath of manmade and natural disasters and calamities. Lokin, Jr. vs. Commission on Elections G.R. No. 179431-32 and G.R. No. 180443 June 22, 2010 621 SCRA 385 Administrative Law; Delegation of Powers; As a general rule, the Legislature cannot surrender or abdicate its legislature power, for doing so will be unconstitutional; Under certain circumstances, the Legislature can delegate to executive officers and administrative boards the authority to adopt and promulgate Implementing Rules and Regulations (IRRs), but the Legislature must declare the policy of the law and fix the legal principles that are to control in given cases. Office of the Court Administrator vs. Reyes A.M. No. P-08-2535 June 23, 2010 621 SCRA 511 Courts; Court Personnel; Administrative Investigations; A resolution of the Supreme Court should not be construed as a mere request, and should be complied with promptly and completely failure to comply betrays, not only a recalcitrant streak in character, but also disrespect for the lawful order and directive of the Court.

Court Personnel; Dangerous Drugs Act; Drug Test; Mandatory but random drug testing of officers and employees of both public and private offices is valid and constitutional.

CRIMINAL LAW
People vs. Domado G.R. No. 172971 June 16, 2010 621 SCRA 73 Same; Same; Same; The marking of the seized shabu at the police station rather than at the exact scene of the warrantless arrest of the accused and the seizure of evidence should be appreciated under the unique attendant circumstances of the case where the entrapment undisputably took place and the sachets of shabu were seized inside the vehicle where all the actors-the accused, the informant, and the police-were riding together. People vs. Ganih G.R. No. 185388 June 16, 2010 621 SCRA 159 Same; Police Line-ups; What the Court condemns are prior or contemporaneous improper suggestions that point out the suspect to the witness as the perpetrator to be identified. People vs. Lalongisip G.R. No. 188331 June 16, 2010 621 SCRA 169 Same; Same; Witnesses; It is a doctrine well-settled in our jurisprudence that when the credibility of a witness is in issue, the findings of fact of the trial court, its calibration of the testimonies of the witnesses, and its assessment of the probative weight thereof, as well as its conclusions anchored on said findings, are accorded high respect, if not conclusive effect. Same; Same; Damages; The principal consideration for the award of damages is the penalty provided by law or imposable for the offense because of its heineousness, not the public penalty actually imposed on the offender the litmus test therefore, in the determination of the civil indemnity is the heinous character of the crime committed,

which would have warranted the imposition of the death penalty, regardless of whether the penalty actually imposed is reduced to reclusion perpetua. Masangkay vs. People G.R. No. 164443 June 18, 2010 621 SCRA 231 Same; Same; A conviction for perjury cannot be obtained by the prosecution by merely showing the inconsistent or contradictory statements of the accused, even if both statements are sworn the prosecution must additionally prove which of the two statements is false and must show the statement to be false by evidence other than the contradictory statement. People vs. Mariacos G.R. No. 188611 June 21, 2010 621 SCRA 327 Criminal Law; Dangerous Drugs Act; Illegal Possession or Transportation of Prohibited Drugs;When an accused is charged with illegal possession or transportation of prohibited drugs, the ownership thereof is immaterial. Consequently, proof of ownership of the confiscated marijuana is not necessary. Same; Same; Same; Crimes Mala Prohibita; Mere possession and/or delivery of a prohibited drug, without legal authority, is punishable under the Dangerous Drugs Act; Anti-narcotics law, like anti-gambling laws, are regulatory statutes they are rules of convenience designed to secure a more orderly regulation of the affairs of society, and their violation gives rise to crimes mala prohibita. Same; Same; Same; The accuseds possession of the packages containing illegal drugs gives rise to the disputable presumption that she is the owner of the packages and their contents. Same; Same; Chain of Custody Rule; Non-compliance with Section 21 of Republic Act No. 9165 is not fatal and will not render an accuseds arrest illegal, or make the items seized inadmissible what is of utmost importance is the preservation of the integrity and evidentiary value of the seized items. Same; Same; Same; Assuming that the police officers failed to abide by Section 21, failure of the accused to raise this issue before the trial court is deemed to be a waiver of any objection on the matter. Same; Same; Same; Presumption of Regularity; Actions of the police officers, in relation to the procedural rules on the chain of custody, enjoyed the presumption of regularity in the performance of official functions.

Pamintuan vs. People G.R. No. 172820 June 23, 2010 621 SCRA 538 Same; Same; When the accused failed at the first instance (and in fact she continuously failed), despite, demands, to return at least the value of the ring, the crime of estafa was consummated the return after seven years of its value only addressed the civil liability that the consummated crime of estafa carried with it. Same; Same; Evidence; Parol Evidence Rule; Under the parol evidence rule, no additional or contradictory terms to this written agreement can be admitted to show that, at or before the signing of the document, other or different terms were orally agreed upon by the parties. People vs. Latosa G.R. No. 186128 June 23, 2010 621 SCRA 586 Same; Same; Same; By no stretch of imagination could the pointing of the gun towards her husbands head and pulling the trigger be considered as performing a lawful act with due care. Same; Same; If the victim dies as a result of a deliberate act of the malefactors, intent to kill is presumed. People vs. Baron G.R. No. 185209 June 28, 2010 621 SCRA 646 Criminal Law; Robbery with Homicide; Elements; In robbery with homicide, a conviction needs certainty that the robbery is the central purpose and objective of the malefactor and the killing is merely incidental to the robbery.

CIVIL LAW
Korean Air Co., Ltd vs. Yuson G.R. No. 170369 June 16, 2010 621 SCRA 52

Same; Same; Obligations and Contracts; For an offer to be certain, a contract must come into existence by the mere acceptance of the offeree without any further act on the offerors part. Martin vs. DBS Bank Philippines, Inc. G.R. No. 174632 June 16, 2010 621 SCRA 94 Contracts; Unless the terms of a contract are against the law, morals, good customs, and public policy, such contract is law between the parties and its term bind them. Same; Rescission; A provision in a lease agreement stipulating that the remedy of rescission would become unavailable to the lessee only if lessors made the required repair and reconstruction after the damages by natural cause occurred which meant putting the premises after the floods in such condition as would enable the lessee to resume its use of the same for the purposes contemplated in the agreement, namely, as office, warehouse, and parking space for the lessees repossessed vehicles is not to be applicable where the lessors did not restore the place to meet the lessees needs. Suntay III vs. Cojuangco-Suntay G.R. No. 183053 June 16, 2010 621 SCRA 142 Succession; The order of preference set out in Section 6, Rule 78 of the Rules of Court in the appointment of an administrator of an estate is not absolute for it depends on the attendant facts and circumstances of each case jurisprudence has long held that the selection of an administrator lies in the sound discretion of the trial court. Same; Same; Legitimate and Illegitimate Relatives; Iron Curtain Bar Rule; The Court is not unmindful of the critiques of civilists of a conflict and a lacuna in the law concerning the bone of contention that is Article 992 of the Civil Code. Office of the City Mayor of Paranaque City vs. Ebio G.R. No. 178411 June 23, 2010 621 SCRA 555 Ownership; Accretion; Alluvial deposits along the banks of a creek do not form part of the public domain as the alluvial property automatically belongs to the owner of the estate to which it may have been added. Miguel J. Ossorio Pension Foundation, Incorporated vs. Court of Appeals G.R. No. 162175 June 28, 2010 621 SCRA 606

Trust; Co-Ownership; Land Titles; Torrens System; The trustor-beneficiary is not estopped from proving its ownership over the property held in trust by the trustee when the purpose is not to contest the disposition or encumbrance of the property in favor of an innocent third-party purchaser for value; The Torrens system was not established to foreclose a trustor or beneficiary from proving its ownership of a property titled in the name of another person when the rights of an innocent purchaser or lien-holder are not involved. Same; Same; A resulting trust is based on the equitable doctrine that valuable consideration and not legal title determines the equitable interest and is presumed to have been contemplated by the parties.

MERCANTILE LAW
Makati Sports Club, Inc., vs. Cheng G.R. No. 178523 June 16, 2010 621 SCRA 103 Corporation Law; Shares of Stocks; Stockholders; The right of a transferee to have stocks transferred to its name is an inherent right flowing from its ownership of the stocks. Same; Same; Same; The certificate is not a stock in the corporation but is merely evidence of the holders interest and status in the corporation, his ownership of the share represented thereby it is not in law the equivalent of such ownership, and while it expresses the contract between the corporation and the stockholder, but is not essential to the existence of a share of stock or the nature of the relation of shareholder to the corporation. Same; Same; Same; The corporations obligation to register is ministerial upon the buyers acquisition of ownership of the share of stock the corporation, either by its board, its by-laws, or the act of its officers, cannot create restrictions in stock transfers. Tecklo vs. Rural Bank of Pamplona, Inc. G.R. No. 171201 June 18, 2010 621 SCRA 262

Mortgages; Blanket Mortgage Clause; Words and Phrases; A blanket mortgage clause, which makes available future loans without need of executing another set of security documents, has long been recognized in our jurisprudence. Same; Same; Where the mortgage contract, containing the provision that future loans would also be secured by the mortgage, is duly annotated on the Transfer Certificate of Title (TCT) of the mortgaged property. This constitutes sufficient notice to the world that the mortgage secures not only the first loan but also future loans the mortgagor may obtain from respondent bank. Same; Same; Foreclosure of Mortgage; Where the mortgagee failed to include the second loan in its application for extrajudicial foreclosure as well as in its bid at the public auction sale, it is deemed to have waived its lien on the mortgaged property with respect to the second loan; After the foreclosure of the mortgaged property, the mortgage is extinguished and the purchaser at auction sale acquires the property free from such mortgage any deficiency amount after foreclosure cannot constitute a continuing lien on the foreclosed property, but must be collected by the mortgagee-creditor in an ordinary action for collection.

TAXATION LAW
Miguel J. Ossorio Pension Foundation, Incorporated vs. Court of Appeals G.R. No. 162175 June 28, 2010 621 SCRA 606 Taxation; Trusts; Co-Ownership; The law expressly allows a co-owner (first ciowner) of a parcel of land to register his proportionate share in the name of his co-owner (second owner) in whose name the entire land is registered the second co-owner serves as a legal trustee of the first co-owner insofar as the proportionate share of the first coowner is concerned. Same; Court of Tax Appeals (CTA); Generally, the factual findings of the Court of Tax Appeals (CTA), a special court exercising expertise on the subject of tax, are regarded as final, binding and conclusive upon the Supreme Court, especially if there are substantially similar to the findings of the Court of Appeals which is normally the final arbiter of questions of fact. Same; Same; Taxation; Tax Exemptions; Employees Trust Funds; It is evident that tax-exemption is likewise to be enjoyed by the income of the pension trust, otherwise taxation of those earnings would result in a diminution of accumulated income and

reduce whatever the trust beneficiaries would receive out of the trust fund. This would run afoul of the very intendment of the law.

LEGAL ETHICS
Rural Bank of Calape, Inc. (RBCI) vs. Florido A.C. No. 5736 June 18, 2010 621 SCRA 182 Legal Ethics; Attorneys; A lawyer shall represent his client with zeal within the bounds of the law me must employ only fair and honest means to attain the lawful objectives of his client. Same; Same; Any means, not honorable, fair and honest which is resorted to by the lawyer, even in the pursuit of his devotion to his clients cause, is condemnable and unethical. Philippine Economic Zone Authority vs. Carantes G.R. No. 181274 June 23, 2010 621 SCRA 569