CO KIM CHAM, petitioner vs. EUSEBIO VALDEZ TAN KEH AND ARSENIO P.

DIZON, Judge of First Instance of Manila, respondents Facts: On January 2, 1942, the city of Manila was occupied by the Japanese forces. The day following, their Commander-in-Chief issued a proclamation, Military Administration under Martial Law over the Districts Occupied by the Army. All laws, as well as executive and judicial institutions, in force during the Commonwealth continued to be effective so far as the Military Administration permits. On January 23, 1942, the Japanese Commander issued Order 1, establishing a central administrative organization under the name of Philippine Executive Commission, where Jorge Vargas was appointed as its chairman. The Supreme Court, Court of Appeals, Court of First Instance, justice of the peace, and MTC were to continue with the same jurisdiction subject to Order 3 issued by the Commander-in Chief. In said order, activities of the administrative organs and judicial courts shall be based upon existing statutes, orders, ordinances, and customs. The following year, the so-called Republic of the Philippines was inaugurated, nevertheless, there was no substantial change in the organization and jurisdiction of the different courts that functioned under PEC. A year thereafter, upon his arrival in the country, Douglas McArthur issued proclamation which declared that all laws, regulations and processes of any other government in the Philippines than that of the Commonwealth are null and void and without legal effect in areas of the Philippines free of enemy occupation and control. Civil Case 3012 was initiated during the Japanese occupation. On February 3, 1945, Manila was partially liberated. On February 27 of the same year, Commonwealth was reestablished and was restored full powers and responsibility under the Constitution. Issue: Whether or not the judicial acts and proceedings transpiring during the governance of the PEC and RP were good and valid and remained as such even after the liberation. Ruling: In political and international law, all acts and proceedings of the legislative, executive, and judicial departments of a de facto government are rendered good and valid. Were the PEC and RP established during the Japanese occupation de facto governments? If they were, the acts and proceedings of said governments remain good and valid even after the liberation or reoccupation of the Philippines by the American and Filipino forces. Of the three kinds of de facto governments, PEC and RP fall under the second, to wit: that which is established and maintained by military forces who invade and occupy a territory of the enemy in the course of war, and which is denominated a government of paramount force. The Philippine Executive Commission was a civil government organized by Order 1 issued by the Commander of the Japanese Forces. The so-called Republic of the Philippines, apparently established and organized as a sovereign state independent from any other government by the Filipino people, was in truth and reality, a government established by the belligerent occupant or the Japanese forces of occupation. It was of the same character as the Philippine Executive Commission, and the ultimate source of its authority was the same the Japanese military authority and government.