Locsin v. Honorable Sandiganbayan

JR., J.:

The Case Before us is a petition1 of a special civil action for certiorari under Rule 65 imputing grave abuse of discretion on the Sandiganbayan (SB) First Division when it denied, through its March 21, 1990 Resolution,2 admission of petitioners' Amended Complaint3 in S.B. Case No. 0042 in connection with their quest to recover shares of Oriental Petroleum and Minerals Corporation (Oriental) from alleged dummies and nominees of former President Ferdinand E. Marcos. Likewise challenged is the May 12, 1998 Order4 which turned down petitioners' Motion for Reconsideration. The Facts Individual petitioners are stockholders of petitioner Oriental.

Oriental is engaged in the exploration, development, acquisition, financing, and management of petroleum and mineral resources. Of note, it gave the Philippines its first oil discovery in 1976. It was organized on October 10, 1969, and had PhP 10 billion common shares which were divided into two classes with the same rights and privileges, viz: (1) six billion Class "A"

common shares to be issued only to Filipino citizens and (2) four billion Class "B" common shares which may be issued to aliens. On May 5, 1988, petitioners Yao Shiong Shio, Oscar Manuel, and Ramon Linan filed a Complaint5 docketed as Civil Case S.B. No. 0041 for Declaration of Nullity of Presidential Commission on Good Government (PCGG) Deed of Sale, Sequestration Orders, Prayer for Issuance of Temporary Restraining Order and/or Preliminary Injunction and Appointment of Receiver, with Damages against most of the respondents.

The case was raffled to the SB First Division. On May 25, 1988, the SB issued a Resolution6 denying petitioners' plea for an injunctive writ. On July 6, 1988, petitioners filed an amended complaint.

On July 27, 1988, a Notice of Dismissal was filed of both the original and amended complaints which were approved by the SB First Division on July 28, 1988. On July 28, 1988, petitioners filed anew a complaint with the SB which was identical to the amended complaint in S.B. No. 0041. The second case was docketed as S.B. No. 0042 and was raffled to the Third Division.

This complaint now impleads petitioners Locsin, et al. as additional plaintiffs and respondents as additional defendants. Two original defendants in S.B. No. 0041, namely: Ramon Garcia of the PCGG and Ramon Garcia of the Asset Privatization Trust (APT), were excluded in S.B. No. 0042, while PCGG and APT remained as party-defendants. On the other hand, respondents corporations were those wherein the shares allegedly illegally obtained by former President Marcos were placed, and from which the disputed shares were taken or sequestered by respondent PCGG.

In addition, the Rizal Commercial Banking Corporation was impleaded in its capacity as the transfer agent of Oriental through which the disputed shares would be transferred to respondents corporations and which petitioners sought to enjoin through the prayed for injunctive writ.

On August 24, 1988, the SB Third Division issued a Resolution taking into account the alleged forum shopping of petitioners within the SB divisions and the similarity of the new complaint with the original and amended complaint in Civil Case S.B. No. 0041 in violation of the SB Circular No. 7. The SB Third Division explicated its August 24, 1988 Resolution, thus: The issue was precipitated by the manifestation of the defendants that the filing of this case smacks of "forum-shopping" within the divisions of this court as the complaint is practically a repetition of the allegation in the complaint in Civil Case No. 0041; The records of said Civil Case No. 0041 show that after the First Division denied the plaintiffs' prayer for preliminary injunction/restraining order in its resolution of May 23, 1988, plaintiffs through another panel of lawyers, filed an amended complaint dated July 6, 1988, but later filed a Notice of Dismissal of both the original and amended complaints of July 27, 1988.

The First Division approved the dismissal on July 29, 1988 in the same day herein plaintiffs filed the complaint in this Case No. 0042; Petitioners do not deny that the complaint in Civil Case No. 0042 is a substantial petition/consolidation of the allegations and prayer in the original and amended complaint in Civil Case No. 0041. They nevertheless maintain that the assignment of this case to the Third Division as a result of a raffle conducted by the Sandiganbayan is final and conclusive. Pursuant to the August 24, 1988 Resolution, the complaint was tossed back to the SB First Division.

Petitioners' Complaint,7 docketed as Civil Case S.B. No. 0042, alleged that Oriental and its stockholders were victims of former president Marcos and his cronies who acquired three blocks of Oriental stocks at various times either without or for inadequate or unlawful considerations, as summarized by the Sandiganbayan, to wit: 1. In 1970, One (1) Billion Class "B" Shares One Billion class "B"

shares (intended to be sold in New York to foreigners) originally transferred to Star Management Corporation (allegedly controlled by Vincent Recto) upon instructions of Pres. Marcos through a Bill of Sale executed by the underwriter of J.M. Barcelon & Co. Consideration: allegedly none, except for a fictitious downpayment of P100,000.00 or 1% (while other subscribers allegedly paid 25%) of the total subscription price - fictitious because the money supposedly came from ORIENTAL PETROLEUM itself. Of these, 1 million shares were allegedly sold by STAR MANAGEMENT in 1971, while the remaining 999 million shares were transferred by STAR MANAGEMENT to ULTRANA upon instruction of ex-Pres.

Marcos. The original subscription contract of ORIENTAL with STAR MANAGEMENT was cancelled and a new one entered with ULTRANA at no consideration to ORIENTAL. In the first week of March 1976, 800 million shares were transferred by ULTRANA to the Independent Realty Corporation and 199 million shares to Vincent Recto.1avvphi1 As of the filing of this suit, the remaining balance subject of the instant suit stands at 162 million shares with Independent Realty Corporation.

2. In 1976, 1.85 Billion Class "B" Shares These were allegedly acquired by ex-Pres.

Marcos through simulated transactions and were distributed upon his instruction as follows: 1.000 Billion : Performance Investment Corp. 840 Million : Mid-Pasig Development Corp. 10 Million : Fabian Ver