STATUTORY CONSTRUCTION

I. GENERAL PRINCIPLES It is well settled that a statute clear and

unambiguous on its face need not be interpreted.2
1. LEGAL SYSTEM AND JUDICIAL
INTERPRETATION 3. CONSTRUCTION
V. INTERPRETATION

a. Section 1, Article VI, 1987 Constitution Construction Interpretation

The drawing of The process of
The legislative power shall be vested in the conclusion with respect discovering the true
Congress of the Philippines which shall consist of a to subjects that are meaning of the language
Senate and a House of Representatives, except to beyond the direct used. Example is the
the extent reserved to the people by the provision on expression of the text. case of Daong vs.
initiative and referendum. Example is the case of Municipal Judge, the
Caltex vs. Palomar on court finds it ambiguous
b. Section 1, Article VII, 1987 Constitution whether promotional as the word “children”
exercise falls under the in the new law really
The executive power shall be vested in the President prohibition of the was written and not
of the Philippines. postal law. grandchildren which
falls under
c. Section 1, Article VIII, 1987 Constitution “descendants” based on
the previous law on
The judicial power shall be vested in one Supreme adoption.
Court and in such lower courts as may be
established by law. 4. WHEN DOES STATUTORY
CONSTRUCTION COME IN?
Judicial power includes the duty of the courts of
justice to settle actual controversies involving rights The court is bound to construe and interpret the law,
which are legally demandable and enforceable, and when:
to determine whether or not there has been a grave
abuse of discretion amounting to lack or excess of 1. There is an actual case of controversy, a
jurisdiction on the part of any branch or case is brought to the court by party litigant
instrumentality of the Government. to hear and settle their dispute;
2. When there is ambiguity in the law involved
in the controversy. The law is susceptible of
2. DEFINITION OF STATUTORY two or more interpretation.
CONSTRUCTION
Construction and interpretation come only after it
has been demonstrated that application is
Statutory Construction is the art or process of
impossible or inadequate without them.3
discovering and expounding the meaning and
intention of the authors of the law with respect to its
When does the court apply the liberal policy on
application to a given case, where that intention is
statutory construction?
rendered doubtful, among others by reason of the
fact that the given case is not explicitly provided by
the law.1  The liberal policy is applied when a case
involves an issue of overreaching
significance to our society.4
Statutory Judicial
Construction Legislation
Can the court adjust the penalties to avoid
A branch of law Is when an excision of
injustices?
dealing with the a portion of the act
interpretation of laws changes the manifest
 No, because that would constitute judicial
enacted by legislature. intent of the act by
legislation. It is the duty of the courts to
broadening its scope to
apply the law when it is clear and not
include a subject matter
subject to interpretation.5
or territory which was
not included therein as
enacted.
2
Daoang v. Municipal Judge, G.R. No. L-34568, March 28,
1988.
3
People of the Philippines v. Mapa, G.R. No. L-22301, August
30, 1967.
4
Del Mar v. PAGCOR, G.R. No. 138298, November 29, 2000.
5
Corpuz v. People of the Philippines, G.R. No. 180016 April
1
Caltex v. Palomar, G.R. No. L-19650, September 29, 1966. 29, 2014.

5. PURPOSE OF STATUTORY
CONSTRUCTION
The purpose of statutory construction is to avoid
injustice, and to give effect to the intention of the
legislature. While we should stress that it is not the
task of the court to give meaning to the statues
because to depart from the meaning and the intent
expressed is to alter the statutes, which constitutes
legislation, a function of the legislative branch.
In the interpretation and construction of statutes, the
primary rule is to ascertain and give effect to the
intention of the Legislature.6
It is of course fundamental that the determination of
the legislative intent is the primary consideration.
However, it is equally fundamental that that
legislative intent must be determined from the
language of the statute itself.
What is liberal construction of statutes?
 Liberal construction of statutes is when the
courts find the meaning behind statutes from
the language sed, the subject matter, and the
purpose of the framers of the law.7
6. JUDICIAL FUNCTION
What is Judicial Function?
 The judicial function is to apply the law to
the cases, interpret the law, and most
important is to interpret the constitution.
The Court emphasizes that the interpretation of the
constitution and statutes is within the exclusive
province and jurisdiction of the judicial department,
and that in enacting a law, the legislature may not
legally therein that it be interpreted in such a way
that it may not violate a constitutional prohibition.8
The Supreme Court has the constitutional duty not
only in applying or interpreting the law in
accordance with prior doctrines, but also to protect
society from the improvidence and wantonness
wrought by needless upheavals, in such
interpretations and applications.9
The Court has steadfastly adhered to the doctrine
that its first and fundamental duty is the application
of the law according to its express terms,
interpretation being called for only when such
literal application is impossible.10
6
People of the Philippines v. Concepcion, G.R. No. L-19190,
November 29, 1922.
7
Tañada v. Yulo, G.R. No. 43375, May 31, 1935.
8
Endencia v. David, G.R. Nos. L-6355-56, August 31, 1935.
9
NAPOCOR v. Province of Lanao del Sur, G.R. No. 96700,
November 19, 1996.
10
Secretary of the DPWH, et al. v.. Spouses Heracleo, et al.,
G.R. No. 179334, April 21, 2015.
STATUTORY CONSTRUCTION
II. SUBJECT MATTER
OF CONSTRUCTION
1. DEFINITION OF
STATUTE
The statute is the written will of the legislature
solemnly expressed according to the form necessary
to constitute it as the law of state.
What are vague statutes?
 Vague statutes are statutes that lacks
comprehensive standards that men of
common intelligence must necessarily guess
at its meaning and differ as to its
application, as such is also repugnant to the
constitution in two respect: it violate the due
process for failure to accord persons,
especially the parties targeted by it, fair
notice of conduct to avoid, and 2, it leaves
law enforcers unbridled discretion in
carrying out its provisions and becomes an
arbitrary flexing of the government muscle.
2. HIERARCHY
OF LAWS
a. Constitution
What is a Constitution?
 The constitution of the Philippines is the
written law that shall guide the conduct of
the government, legislative, executive, and
the judiciary, duly ordained and
promulgated by the citizens.
It is likewise a basic perception in statutory
construction that a statute should be interpreted in
harmony with the Constitution.11
b. Statutes
What is a statute?
 Statues are the written will of the legislative
solemnly expressed according to the form
necessary to constitutes it as the law of the
state
Sources of Statutes:
1. An Act of the House (Lower House and
Senate) are laws passed by the Philippine
Commission, Philippine Legislature, and the
Batasang Pambansa, and the Congress of the
Philippines.
2. Presidential Decree during the period of
Marcos ruling during Martial Law,
11
Paras v. COMELEC, G.R. No. 123169, November 04, 1996.

specifically the Presidential Proclamation
1081, and the 1973 Constitution.
3. Executive Orders of President Corazon
Aquino during the Freedom Constitution.
c. Supreme Court Decisions
Article 8 of the New Civil Code
“Judicial Decisions applying or interpreting the
laws or the constitution shall form part of the legal
system of the Philippines.”
Thus, we take note of the judicial doctrines when
applying and interpreting the law, as much as the
laws enacted by the Congress, administrative and
executive acts, regulation and orders from the Chief
Executive, and local ordinances.
What is Judicial Doctrine?
 The judicial interpretation of a statue, which
constitute part of the law as of the date it
was originally passed since the court’s
construction, merely establishes the
contemporaneous legislative intent that the
interpreted law carried into effect. Such
judicial doctrine does not amount to the
passage of a new law but consist merely of a
construction or interpretation of pre-existing
one
What is Doctrine of Operative Fact?
 The Doctrine of Operative Fact is an
exception to the general rule, such that a
judicial declaration of invalidity may not
necessarily obliterate all the effects and
consequences of a void act prior to such
declaration. The actual existence of a statute,
prior to such determination [of
unconstitutionality] is an operative fact
which cannot justly be ignored. The past
cannot always be erased by a new judicial
declaration.12
What is Judicial Precedence (Stare Decisis)?
 Judicial precedence requires the courts in a
country to follow the rule established in a
decision of the Supreme Court thereof. The
doctrine of stare decisis et non quieta
movere (to adhere to the precedents and not
to unsettle things which are established) is
embodied in Article 8 of the Civil Code of
the Philippines, which provides thus;
“Judicial decisions applying or interpreting
the laws or the Constitution shall form part
of the legal system of the Philippines.”13
12
Co v. Court of Appeals, G.R. No. 100776, October 28, 1993.
13
Lazatin v. Desierto, G.R. No. 147097, June 05, 2009.
STATUTORY CONSTRUCTION
d. Presidential Issuances
Can the Chief Executive declare martial law?
 The Chief Executive has the power to
declare martial law, according to Section 18,
of Article VII, of the 1987 Constitution. He
may also or as otherwise provided in this
Constitution, the President may grant
reprieves, commutations and pardons, and
remit fines and forfeitures, after conviction
by final judgment, except in impeachment,
according to Section 19 or Article VII of the
constitution.
 Since the Chief Executive is vested with the
executive power, Chapter I, Title I, Book III
of the Administrative Code of 1987, he has
the power of control he executive
departments, bureaus, and offices. He shall
ensure that the laws be faithfully executed,
with this is the
capacity to issue ordinances, administrative
orders, proclamation, memorandum orders
and circulars, and general and special orders.
Does the wrong application of the law renders it
invalid?
 No. The wrong application of the law does
not render it invalid, as the Court can only
declare a statute unconstitutional if it
violates the provisions of the Constitution
and not on the grounds that the enforcers of
the law have erred in the law’s application.
Separate civil or criminal cases for the
violations of the individuals who erred must
be filed independently.14
What may the President issue (Ordinance Power)?
1. Executive Orders;
2. Administrative Orders;
3. Proclamations;
4. Memorandum Orders;
5. Memorandum Circulars; and
6. General Special Orders.15
e. Administrative Rules and Regulations
Section 7, (2), (3), (4), Chapter 2, of the 1987
Administrative Code of the Philippines.
 (2) Establish the policies and standards for
the operation of the Department pursuant to
the approved programs of governments;
 (3) Promulgate rules and regulations
necessary to carry out department
14
David v. Arroyo, G.R. No. 171396, May 03, 2006.
15
Chapter 2, Book II, Administrative Code of 1987.

objectives, policies, functions, plans,
programs and projects;
 (4) Promulgate administrative issuances
necessary for the efficient administration of
the offices under the Secretary and for
proper execution of the laws relative thereto.
These issuances shall not prescribe penalties
for their violation, except when expressly
authorized by law.
Why are Administrative Rules and Regulations
needed?
 Administrative Rules and Regulations are
needed because there are details to be filled
in since the law is general.
Can the Congress delegate to another branch of the
government the power to fill in details of execution?
 Yes, the Congress may delegate to another
branch of the Government the power to fill
in the details in the execution, enforcement
or administration of a law, it is essential, to
forestall a violation of the principle of
separation of powers, that said law:
(a) be complete in itself — it must set
forth therein the policy to be
executed, carried out or implemented
by the delegate — and
(b) fix a standard — the limits of which
are sufficiently determinate or
determinable — to which the
delegate must conform in the
performance of his functions.
What are the requisites for an administrative
issuance to be valid?
 To be valid, an administrative issuance, such
as an executive order, must comply with the
following requisites:
(a) Its promulgation must be authorized
by the legislature;
(b) It must be promulgated in
accordance with the prescribed
procedure;
(c) It must be within the scope of the
authority given by the legislature;
and;
(d) It must be reasonable.
f. Ordinances
Section 48. Chapter III, of the Local Goverment
Code of 1991, Local Legislative Power
“Local legislative power shall be exercised by the
sangguniang panlalawigan for the province; the
sangguniang panlungsod for the city; the
STATUTORY CONSTRUCTION
sangguniang bayan for the municipality; and the
sangguniang barangay for the barangay”
What are the requisites for a valid ordinance?
 For an ordinance to be valid, it must not
only be within the corporate powers of the
city or municipality to enact but must also
be passed according to the procedure
prescribed by law. It must be in accordance
with certain well-established basic principles
of a substantive nature. These principles
require that an ordinance:
(a) Must not contravene the Constitution
or any statute;
(b) Must not be unfair or oppressive;
(c) Must not be partial or
discriminatory;
(d) Must not prohibit but may regulate
trade;
(e) Must be general and consistent with
public policy; and
(f) Must not be unreasonable.
3. KINDS OF
STATUTES
1. General Law–A law that relates to a subject
of a general nature, or that affects all people
of the state or all of a particular class.
2. Special Law – A law designed for a
particular purpose, or limited in range
confined.
3. Local Law – A law which relates or
operates over a particular locality instead of
over the whole territory of the state.
4. Public Law – A general classification of
law concerned with the organization of the
state, the relations between the state and the
people who compose it, the responsibilities
of public officers to the state, to each other,
and to private persons and the relations of
states to one another.
5. Private Law – Portions of the law which
defines, regulates, enforces, and administers
relationships among individuals,
associations, and corporations.
6. Remedial Statute – A statute providing
means or method whereby causes of action
may be effectuated, wrongs redressed and
relief obtained.
7. Curative Statute – A form of retrospective
legislation which reaches back into the past
in order to correct errors and irregularities
and to render valid and effective many
attempted acts which would otherwise be
ineffective for the purpose intended.
8. Penal Statue – A statute that defines
criminal offenses and specifies
corresponding fines and punishments.

9. Retrospective Law – A law which is made
to affect acts or facts occurring, or rights
occurring, before it came into force.
10. Affirmative Statute – A statute which
directs the doing of an act or declares what
shall be done.
11. Mandatory Statute – Generic term
describing statutes which require and not
merely permit a course of action. They are
characterized by such directives as “shall”
and not “may”.
Mandatory Provision Directory Provision
The omission of which The observance of
renders the related which is not necessary
proceedings void. to the validity of the
proceedings.
When the provision of When it relates to form
a statute is the essence and manner, and when
of the thing required to an act is incidental or
be done. acquired after
jurisdiction
4. HOW LAWS ARE PASSED
Laws are passed by going through three readings:
1. First reading:
(a) Only the title and number of the bill
is read;
(b) The bill is referred to the appropriate
committee
2. Second reading:
(a) The committee invites key people to
scrutinize the bill;
(b) The committee votes whether the bill
is favorable or not;
(c) If not, the bill is considered dead;
(d) If yes, the bill shall be open to
debates, afterwards should be sent
back to the committee for
amendments;
3. Third reading:
(a) Copies are furnished and must be
handed to the members;
(b) The title and the entirety of the bill is
read out loud;
(c) For the bill to pass the third reading,
it must garner a majority vote (half
of the quorum + 1);
(d) Should the bill pass the third reading,
it shall be forwarded to the other
house where it will go again under
three readings.
What is the enrolled bill doctrine?
 Under the enrolled bill doctrine, the signing
of the bill by the Speaker of the House and
the President of the Senate and the
certification by the secretaries of both
STATUTORY CONSTRUCTION
Houses of Congress are conclusive of its due
enactment.16
A Bicameral Conference Committee may be held to
harmonize the two different versions of the bill.
Changes introduced by the Bicameral Conference
Committee on disagreeing provisions were meant
only to reconcile and harmonize the disagreeing
provisions for it did not inject any idea or intent that
is wholly foreign to the subject embraced by the
original provisions.17
Should the bill pass the third reading, it shall be
forwarded to the President. The President may sign
the bill into law or veto it. If the bill remains
untouched for 30 days, the bill automatically
becomes a law. If the bill is vetoed, the President
shall return the same with his objections to the
House where it originated. After reconsideration,
the House may overturn the veto by two-thirds of its
vote. Afterwards, the bill is turned over to the other
house where it will undergo the same process.
What are the bills that should only come from the
House of Representatives?
1. Appropriation;
2. Revenue or tariff bills;
3. Bills authorizing increase of public debt;
4. Bills of local application; and
5. Private bills.18
What is meant by the “One Title One Subject” rule
under Section 26, Article VI of the 1987
Constitution?
 Constitutional provisions relating to the
subject matter and titles of statutes should
not be so narrowly construed as to cripple or
impede the power of legislation. The
requirement that the subject of an act shall
be expressed in its title should receive a
reasonable and not a technical construction.
It is sufficient if the title be comprehensive
enough reasonably to include the general
object which a statute seeks to effect,
without expressing each and every end and
means necessary or convenient for the
accomplishing of that object.19
 The one-subject requirement under the
Constitution is satisfied if all the parts of the
statute are related, and are germane to the
subject matter expressed in the title, or as
long as they are not inconsistent with or
foreign to the general subject and title.20
16
Arroyo v. De Venecia, G.R. No. 127255, August 14, 1997.
17
ABAKADA Guro Party List v. Ermita, G.R. No. 168056,
September 01, 2005.
18
Section 24, Article VI of the 1987 Constitution.
19
ABAKADA Guro Party List v. Ermita, G.R. No. 168056,
September 01, 2005.
20
Remman Enterprises Inc., et al. v. Professional Regulatory
Board of Real Estate Service, et al., G.R. No. 197676,
February 04, 2014.

Can the Courts declare a law null and void because
it was passed in violation of the rules of the House?
 No, the Court is not concerned with the
internal procedure of the Houses. Section
26-27 of Article VI of the 1987 Constitution,
“each House may determine its
proceedings,” is used to support claims of
autonomy of the legislative branch to
conduct business free from interference of
the Courts.21
5. PARTS OF A STATUTE
a. Title
All the parts of the law must be related, and are
germane to subject matter expressed in the title of
the bill.22
What is the purpose of the one subject one title
rule?
 It has been said that the purpose of such
provision (one-title, one subject rule) is to
prevent the evils of so called omnibus bills
and surreptitious or unconsidered
legislation. "The mischief sought to be
remedied by the requirement of a single
subject or object of legislation was the
practice of bringing together in one bill
matters having no necessary or proper
connection with each other but often entirely
unrelated and even incongruous.23
 Reason for “one subject one title”: To
prevent duplicity in legislation, hodgepodge
or log-rolling legislation, and surprise of
fraud upon the legislative. Also, to fairly
appraise the people through publication of
the subjects of the legislation. The title shall
also be used as a guide in ascertaining the
intent of the legislative.
How do we determine if the title of the statute
conforms to the Constitution?
 The Supreme Court held that the one-title,
one-subject rule as contemplated in the
Constitution, contains dual limitations upon
legislative power, and that to determine if
the title statute conforms to the Constitution
it must be:
(a) The subject need not be stated in
express terms, as long as it is
inferable from the details; and
21
Arroyo v. De Venecia, G.R. No. 127255, August 14, 1997.
22
Cordero v. Cabatuando, G.R. No. L-14542, October 31,
1962.
23
Government of the Philippine Islands v. HSBC, G.R. No.
44257, November 22, 1938.
STATUTORY CONSTRUCTION
(b) The title should be sufficient to
notify the legislators, the public and
those concerned.24
b. Preamble
This part of the statutes explains the reason of its
enactment and object it sought to be accomplished.
c. Enacting Clause
That part of the statute which declares its enactment
and serves to identify it as an act of legislation
proceeding from the proper legislative authority.
d. Body
The main and operative part of the statute
containing its substantive and even procedural
provisions. Provisos and exceptions may also be
found in the body of the statute.
e. Repealing Clause
That part of the statute which announces the prior
statutes or specifies provisions which have been
abrogated by reason of the enactment of the new
law.
f. Separability Clause
That part of which provides that in the event that
one or more provisions are declared void or
unconstitutional, the remaining provisions shall be
in force.
What is the general rule and the exception to the
Separability Clause of statutes?
 The general rule is that where part of a
statute is void as repugnant to the
Constitution, while another part is valid, the
valid portion, if separable from the invalid,
may stand and be enforced.25
The exception to the general rule is that
when the parts of a statute are so mutually
dependent and connected, as conditions,
considerations, inducements, or
compensations for each other, as to warrant
a belief that the legislature intended them as
a whole the nullity of one part will vitiate
the rest.26
g. Effectivity Clause
24
Lidasan v. COMELEC, G.R. No. L-28089, October 25,
1967.
25
Antonio v. COMELEC, et al., G.R. No. 135869, September
22, 1999; Tatad v. Secretary of the Department of Energy, et
al., G.R. No. 124360, December 03, 1997.
26
Id.

This part announces the date of effectivity of the
law, ensuring that it follows the guideline of Art. 2
of the New Civil Code.
Is publication necessary for the effectivity of laws?
 Yes. The Supreme Court held that Article 2
does not preclude the requirement of
publication in the Official Gazette, even if
the law itself provides for the date of its
effectivity.
What is meant by "law of public nature" or "general
applicability"?
 The term “laws” under Article 2 of the Civil
Code refer to all laws and not only to those
of general application. Laws which affect
the general public and laws affecting public
interest are considered laws of public nature
or laws of general applicability.27
Must a distinction be made between laws of general
applicability and laws which are not?
 Laws of general applicability, including
those of local application and private laws,
shall be published as a condition for their
effectivity, but interpretative regulations and
those merely internal in nature, that is,
regulating only the personnel of the
administrative agency and not the public,
need not be published,28
What is meant by "publication"?
 Publication must be in full or it is no
publication at all since its purpose is to
inform the public of the contents of the laws.
The mere mention of the number of the
presidential decree, the title of such decree,
its whereabouts, the supposed date of
effectivity, and in a mere supplement of the
Official Gazette cannot satisfy the
publication requirement.29
Where is the publication to be made?
 Under Article 2 of the Civil Code, the
publication of laws must be made in the
Official Gazette, and not elsewhere, as a
requirement for their effectivity after
fifteen days from such publication or after a
different period provided by the
legislature.30
When is the publication to be made?
27
Tañada, et al. v. Tuvera, et al., G.R. No. L-63915, December
29, 1986.
28
Id.
29
Id.
30
Id.
STATUTORY CONSTRUCTION
 Publication must be made forthwith, or at
least as soon as possible, to give effect to the
law pursuant to the said Article 2.31
6. VALIDITY OF STATUTES
Validity of Statue according to Black, “the term
relating to the effectiveness of a law as it relates to
the constitution.”
While in Paragraph 2 and 3, Article 7, of the New
Civil Code, it states that, “When the courts declare a
law to be inconsistent with the constitution the
former shall be void, and the later shall govern.
Administrative, executive Acts, orders and
regulation shall be valid only when they are not
contrary to the laws and constitution.”
Thus statutes will only be valid if it is able to follow
the constitutional test of the bill, as much as its
consistency to the constitution, while the orders
from Chief Executive and the executive offices and
institution should not only be aligned to the
constitution but the laws as well.
Under what circumstances can a law be declared
unconstitutional?
 The presumption is always in favor of the
constitutionality of a law. To declare a law
unconstitutional, the repugnancy of that law
to the Constitution must be clear and
unequivocal, for even if a law is aimed at the
attainment of some public good, no
infringement of constitutional rights is
allowed. To strike down a law there must be
a clearshowing that what the fundamental
law condemns or prohibits, the statute
allows it to be done.32
 Courts are practically unanimous in the
pronouncement that laws shall not be
declared invalid unless the conflict with the
Constitution is clear beyond reasonable
doubt.33
III. BASIC GUIDELINE IN THE
CONSTRUCTION AND
INTERPRETATION OF LAWS
1. LEGISLATIVE INTENT
Legislative intent or intent of the legislature or mens
legislatoris is a controlling factor in the
construction and interpretation of a law. The letter
of the law gives way to the true intent of the
legislature. And when a statute is susceptible of
31
Id.
32
Salas v. Jarencio, G.R. No. L-29788, August 30, 1972.
33
Dumlao v. Commission on Elections, G.R. No. 52245,
January 22, 1980.

more than one construction, the Courts shall adopt
the construction which will most tend to give effect
to the intent of the legislature.
How is legislative intent determined?
 Legislative intent is determined principally
from the language of a statute. Where the
language of a statute is clear and
unambiguous, the law is applied according
to its express terms, and interpretation
would be resorted to only where a literal
interpretation would be either impossible or
absurd or would lead to an injustice.34
2. GENERAL RULE IN DETERMINING
LEGISLATIVE INTENT: VERBA
LEGIS (LITERAL INTERPRETATION)
Verba Legis means plain meaning rule, the primary
rule in addressing any problem relating to the
understanding or the interpretation of a law is to
examine the law itself to see what is plainly says.
This is the plain meaning rule of statutory
construction.
When does a court give the statute its literal
meaning and application?
 If a statute is clears plain and free from
ambiguity, it must be given its literal
meaning and applied without attempted
interpretation. This plain-meaning rule or
verba legis derived from the maxim index
animi sermo est (speech is the index of
intention) rests on the valid presumption that
the words employed by, the legislature in a
statute correctly express its intent or will and
preclude the court from construing it
differently.35
3. EXCEPTION TO THE GENERAL
RULE: RATIO LEGIS (SPIRIT OF THE LAW)
The spirit rather than the letter of the law. A statute
must be read according to its spirit or intent, for
what is within the spirit is within the statute
although it is not within its letter, and that which is
within the letter but not within the spirit is not
within the statute. Put a bit differently, that which is
within the intent of the lawmaker is as much within
the statute as if within the letter; and that which is
within the letter of the statute is not within the
statute unless within the intent of the lawmakers.
Withal, courts ought not to interpret and should not
accept an interpretation that would defeat the intent
of the law and its legislators.
34
Ramirez v. Court of Appeals, G.R. No. 93833, September 28,
1995.
35
Globe-Mackay vs NLRC et al., G.R. No. 82511, March 03
1992.
STATUTORY CONSTRUCTION
The legislative intent is not at all times accurately
reflected in the manner in which the resulting law is
couched. Thus, applying a verba legis or strictly
literal interpretation of a statute may render it
meaningless and lead to inconvenience, an absurd
situation or injustice.
Article 10 of the New Civil Code
“In case of doubt in the interpretation or application
of laws, it is presumed that the lawmaking body
intended right and justice to prevail.”
4. DOCTRINE OF NECESSARY
IMPLICATIONS
Doctrine of Necessary Implication states that what
is implied in a statute is as much a part thereof as
that which is expressed. Every statute is understand
by implication to contain all such provision as may
be necessary to effectuate to its object and purpose,
or to make effective rights, powers, privileges or
jurisdiction which it grants, including all such
collateral and subsidiary consequences as may be
fairly and logically inferred from its terms.36
The principle is expressed in the maxim EX
NECESSITATE LEGIS or from the necessity of the
law.
The doctrine of implications means that that which
is plainly implied in the language of a statute is as
much a part of it as that which is expressed.37
When does the doctrine of necessary implication
come in?
 The rules of statutory construction use the
doctrine of necessary implication to fill in
the gap of the law. Every statute is
understood, by implication, to contain all
such provisions as may be necessary to
effectuate its object and purpose, or to make
effective rights, powers, privileges or
jurisdiction which it grants, including all
such collateral and subsidiary consequences
as may be fairly and logically inferred from
its terms.38
5. CASSUS OMISSUS
Casus Omissus Pro Omisso Habendus Est, under
the said rule, a person, object or thing omitted from
an enumeration must be held to have been omitted
intentionally; this will apply only when the
omission is clearly established.
When is casus omissus applicable?
36
Chua v. Civil Service Commission, G.R. No. 88979,
February 07, 1992.
37
City of Manila, et al. v. Gomez, et al., G.R. No. L-37251,
August 31, 1981.
38
Pepsi Cola Products Phils, Inc. v. Secretary of Labor, G.R.
No. 96663, August 10, 1999.

 The maxim casus omisus can operate and be
applied only if and when the omission has
been clearly established. In the case of
People of the Philippines v. Manantan39, it
has already been shown that the legislature
did not exclude or omit justices of the peace
from the enumeration of officers precluded
from engaging in
partisan political activities. Rather, they
were merely called by another term. In the
new law, or Section 54 of the Revised
Election Code, justices of the peace were
just called judges.
6. STARE DECISIS
This a doctrine that follows the past precedent, and
does not disturb what had been settled on previous
merits of the case, therefore, in cases where facts
are substantially the same, regardless of parties and
properties, the court shall apply the same ruling.
IV. CONSTRUCTION AND
INTERPRETATION OF WORDS
AND PHRASES
1. WHEN THE LAW DOES NOT
DISTINGUISH COURTS
SHOULD NOT DISTINGUISH
It is well recognized rule that where the law does
not distinguish, courts should not distinguish. Ubi
lex non distinguit nec nos distinguere debemos. The
rule, founded on logic, is a corollary of the principle
that general words and phrases in a statute should
ordinarily be accorded their natural and general
significance.40
2. WORDS CONSTRUED IN THEIR
ORDINARY SENSE
In the case of Collector of Internal Revenue v.
Manila Lodge No. 761 of the Benevolent &
Protective Order of Elks, et al.41, the Supreme
Court held that the plain and ordinary meaning of
“business” is restricted to activities or affairs where
profit is the purpose, or livelihood is the motive.
3. EXCEPTIONS
IN THE STATUTE
It is a cardinal principle in statutory construction
that where the law does not distinguish courts
should not distinguish. Parenthetically, the rule is
that where the law does not make any exception,
39
G.R. No. L-14129, July 31, 1962.
40
Philippine British Assurance Co., Inc. v. Intermediate
Appellate Court, et al., G.R. No. L-72005, May 29, 1987.
41
G.R. No. L-11176, June 29, 1959.
STATUTORY CONSTRUCTION
courts may not except something unless compelling
reasons exist to justify it.42
4. GENERAL TERMS FOLLOWING
SPECIAL TERMS (EJUSDEM GENERIS)
The principle that “general terms may be restricted
by specific words, with the result that the general
language will be limited by the specific language,
which indicates the statute’s object and purpose” is
applicable only to cases where, except for the
general term, all the items in an enumeration belong
to or fall under one specific class.43
5. EXPRESS MENTION AND IMPLIED
EXCLUSION (EXPRESSIO UNIUS EST
EXCLUSIO ALTERIUS)
6. ASSOCIATED WORDS (NOSCITORA
SOCIIS)
The rule of noscitor a socilis means that where a
particular word is equally susceptible to various
meanings, its correct construction may be made
specific by considering the company of terms in
which it is found or with which it is associated.44
7. USE OF TECHNICAL TERMS
In the case of Manila Herald Publishing Co., Inc.,
et al. v. Ramos, et al.45, the Supreme Court ruled
that the word “action” as used in Rule 59 of the
Rules of Court has acquired a well-define, technical
meaning. In employing the word "commencement"
the rule clearly indicates an action which originates
an entire proceeding and puts in motion the
instruments of the court calling for summons,
answer, etc, and not any intermediary step taken in
the course of the proceeding whether by the parties
themselves or by a stranger.
8. USE OF NEGATIVE WORDS
Under the rule of statutory construction, negative
words and phrases are to be regarded as mandatory
while those in the affirmative are merely
directory.46
9. THE USE OF THE WORDS
“MAY” AND “SHALL”
IN THE STATUTE
The use of the word "may" in the provision is
construed as permissive and operating to confer
discretion. Where the words of a statute are clear,
42
De Villa v. Court of Appeals, et al., G.R. No. 87416, April
08, 1991.
43
Colgate-Palmolive Philippines, Inc. v. Gimenez, et al., G.R.
No. L-14787, January 28, 1961.
44
Buenaseda v. Flavier, G.R. No. 106719, September 21,
1993.
45
G.R. No. L-4268, January 18, 1951.
46
Fule v. Court of Appeals, G.R. No. L-79094, June 22, 1988.

plain and free from ambiguity, they must be given
their literal meaning and applied without attempted
interpretation.47
10. THE USE OF
THE WORD “MUST”
If the languages of a statute considered as a whole
and with due regard to its nature and object reveals
that the legislature intended to use the words "shall"
and "must" to be directory, they should be given
that meaning.48
11. THE USE OF THE TERM “AND”
AND THE WORD “OR”
The term "and/or" means that the effect shall be
given to both the conjunctive "and" and the
disjunctive "or"; or that one word or the other may
be taken accordingly as one or the other will best
effectuate the purpose intended by the legislature as
gathered from the whole statute.49
12. THE USE OF
THE WORD “ONLY”
In Roos Industrial Construction, Inc., et al. v.
National Labor Relations Commission, et al.50, the
Supreme Court held that the intention of the
lawmakers to make the bond an indispensable
requisite for the perfection of an appeal by the
employer is underscored by the provision that an
appeal may be perfected "only upon the posting of a
cash or surety bond." The word "only" makes it
perfectly clear that the lawmakers intended the
posting of a cash or surety bond by the employer to
be the exclusive means by which an employer’s
appeal may be considered completed.
13. COMPUTATION OF TIME
Article 13 of the New Civil Code
“When the laws speak of years, months, days or
nights, it shall be understood that years are of three
hundred sixty-five days each; months, of thirty
days; days, of twenty-four hours; and nights from
sunset to sunrise.
If months are designated by their name, they shall
be computed by the number of days which they
respectively have.
In computing a period, the first day shall be
excluded, and the last day included.”
47
Office of the Ombudsman v. Shagun, et al., G.R. No.
167982, August 13, 2008.
48
Loyola Grand Villas Homeowners (South) Association, Inc.
v. Court of Appeals, et al., G.R. No. 117188, August 07, 1997.
49
Romulo, Mabanta, Sayoc & De Los Angeles v. Home
Development Mutual Fund, G.R. No. 131082, June 19, 2000.
50
G.R. No. 172409, February 04, 2008.
STATUTORY CONSTRUCTION
A “week” is used simply as a measure of duration
of time and without reference to the calendar, it
means a period of seven consecutive days without
regard to the day of the week on which it begins.51
14. FUNCTION OF THE PROVISIO
The familiar grammatical rule is that a proviso is to
be construed with reference to the immediately
preceding part of the provision to which it is
attached, and not to other sections thereof, unless
the clear legislative intent is to restrict or qualify not
only the phrase immediately preceding the proviso
but also earlier provisions of the statute or even the
statute itself as a whole.52
V. INTRINSIC AIDS IN
CONSTRUCTION AND
INTERPRETATION
1. LAW CONSTRUED AS A WHOLE
AND IN RELATION
TO OTHER LAWS
Legislative intent must be ascertained from a
consideration of the whole statute. Clauses and
phrases of the statutes should not be taken as
detached and isolated expressions, but the whole
and every part thereof must be considered in fixing
the meaning of any of its parts.53
2. TITLE OF THE LAW
3. TEXT OF THE STATUTE
In the dissenting opinion of Justice Puno in the case
of Lim v. Pacquing, et al.54, the Justice opined that
the text of R.A. no. 954 itself does not intimate that
it is repealing any existing law, especially section
18 (jj) of R.A. no. 409, otherwise known as the
Charter of Manila. Indeed, R.A. No. 954 has no
repealing provision. The reason is obvious — it
simply prohibited certain practices in jai-alai then
still unregulated by the laws of the land. It did not
regulate aspects of jai-alai already regulated by
existing laws, like the matter of whether it is the
national government alone that should issue
franchises to operate jai-alai games.
4. SUBTITLE
In the case of Defensor-Santiago, et al. v.
Commission on Elections, et al55., the Supreme
Court ruled that the silence of the Republic Act No.
51
Philippine National Bank v. Court of Appeals, et al., G.R.
No. 98382, May 17, 1993.
52
ALU-TUCP v. National Labor Relations Commission, et al.,
G.R. No. 109902, August 02, 1994.
53
Caudal v. Court of Appeals, et al., G.R. No. 83414, July 31,
1989.
54
G.R. No. 115044, January 27, 1995.
55
G.R. No. 127325, March 19, 1997.

6735 as to the Subtitle for the initiative on the
Constitution means that the main thrust of the Act is
initiative and referendum on national and local laws
5. PREAMBLE
In the case of Eugenio v. Drilon, et al.56, the
Supreme Court resolved the matter by looking into
the intention of Presidential Decree No. 957 through
its preamble.
VI. EXTRINSIC AIDS IN CONSTRUCTION
AND INTERPRETATION
Extrinsic aids are existing aids from outside of the
four corners of the statute (from outside sources).
And they are restored to after exhausting all
available intrinsic aids (to
determine the intention of legislature) and still there
remain some ambiguity in the statute.
What are the sources of extrinsic aids?
1. Public Policy;
2. Judicial Construction; and
3. Construction by the Bar.
1. CONTEMPORANEOUS
CIRCUMSTANCES
On the principle of contemporaneous exposition,
common usage and practice under the statute, or a
course of conduct indicating a particular
undertaking of it, will frequently be of great value
in determining its real meaning, especially where
the usage has been acquired in by all parties
concerned and has extended over a long period of
time.57
2. LEGISLATIVE HISTORY
Another rule applied by the Court is that the courts
may take judicial notice of the origin and history of
the statutes which they are called upon to construe
and administer, and of facts which affect their
derivation, validity and operation.58
3. LEGISLATIVE DEBATES AND
COMMITTEE REPORTS
In the case of Gaanan v. Intermediate Appellate
Court, et al59., the Supreme Court ruled that on the
construction or interpretation of a legislative
measure, the primary rule is to search for and
determine the intent and spirit of the law. A perusal
of the Senate Congressional Records will show that
56
G.R. No. 109404, January 22, 1996.
57
Manila Jockey Club, Inc. v. Games and Amusements Board,
et al., G.R. No. L-12727, February 29, 1960.
58
Commissioner of Customs v. Esso Standard Eastern, Inc,,
G.R. No. L-28239, August 07, 1975.
59
G.R. No. L069809, October 16, 1986.
STATUTORY CONSTRUCTION
not only did our lawmakers not contemplate the
inclusion of an extension telephone as a prohibited
device or arrangement" but of greater importance,
they were more concerned with penalizing the act of
recording than the act of merely listening to a
telephone conversation.
4. EXECUTIVE/CONTEMPORANEOUS
CONSTRUCTION
The principle that the contemporaneous
construction of a statute by the executive officers of
the government, whose duty it is to execute it, is
entitled to great respect, and should ordinarily
control the construction of the statute by the courts,
is so firmly embedded in our jurisprudence that no
authorities need be cited to support it.
Courts will and should respect the contemporaneous
construction placed upon a statute by the executive
officers whose duty it is to enforce it, and unless
such interpretation is clearly erroneous will
ordinarily be controlled thereby.60
5. REFERENCE TO
OTHER STATUTES
In the case of Escosura, et al. v. San Migueal
Brewery, Inc.61, the Supreme Court made references
to other statutes in order to determine the common
usage of the term “pay”.
6. STATUTES BORROWED FROM
FOREIGN JURISDICTIONS
For the proper construction and application of the
terms and provisions of legislative enactment's
which have been borrowed from or of times
essential to review the legislative history of such
enactments and to find an authoritative guide for
their interpretation and application in the decision
of American and English courts of last resort
construing and applying similar legislation in those
countries.
Indeed it is a general rule of statutory construction
that courts may take judicial notice of the original
and history of the statutes which they are called
upon to construe and administer, and of the facts
which affect their derivation, validity and
operation.62
VII. PRESUMPTIONS IN AID OF
CONSTRUCTION AND
INTERPRETATION
General Rule
60
Philippine Global Communications, Inc. v. Relova, et al.,
G.R. No. L-60548, November 10, 1986.
61
G.R. No. L-16696, January 31, 1962
62
United States v. De Guzman, G.R. No. L-9144, March 27,
1915.

 If the law is clear, courts should not resort to
presumptions.
Exception
 If the law is doubtful or unambiguous,
courts will presume that it was the intention
of the legislature to enact a valid, sensible
and just law and one which should change
the prior law no further than may be
necessary to effectuate the specific purpose
of the act in question
1. PRESUMPTION AGAINST
UNCONSTITUTIONALITY
Laws are presumed constitutional. To justify
nullification or unconstitutionality of a law, there
must be a clear and unequivocal breach of the
constitution (not a doubtful and argumentative
implication).
2. PRESUMPTION AGAINST
INJUSTICE
Indispensable part of the legislative intent is to
render justice. The law is applied and interpreted in
consonance with justice (not only independently)
In case of doubt in the interpretation or application
of laws, it is presumed that the law-making body
intended right and justice to prevail.63
A law should not be interpreted as to cause
injustice.64
3. PRESUMPTION AGAINST IMPLIED
REPEALS
It is a well-settled rule of statutory construction that
repeals of statutes by implication are not favored.
The presumption is against inconsistency and
repugnancy for the legislature is presumed to know
the existing laws on the subject and not to have
enacted inconsistent or conflicting statutes.65
An implied repeal predicates the intended repeal
upon the condition that a substantial conflict must
be found between the new and prior laws. In the
absence of an express repeal, a subsequent law
cannot be construed as repealing a prior law unless
an irreconcible inconsistency and repugnancy exists
in the terms of the new and old laws. The two laws
must be absolutely incompatible. There must be
such a repugnancy between the laws that they
cannot be made to stand together.66
63
Salvacion v. Central Bank of the Philippines, G.R. No.
94723, August 21, 1997.
64
Alonzo v. Intermediate Appellate Court, G.R. No. L-72873,
May 28, 1987.
65
Mecano v. Commission on Audit, G.R. No. 103982,
December 11, 1992.
66
Berces v. Guingona, G.R. No. 112099, February 21, 1995.
STATUTORY CONSTRUCTION
When is a law repealed?
 The new law must be so irreconcilable
inconsistent and repugnant with the old law
that they cannot be made to reconcile and
stand together.
 It be shown that the statutes or statutory
provisions deal with:
(a) The same subject matter; and
(b) The latter is inconsistent with the
former law.
 Repugnance is clear and convincing in
character.
4. PRESUMPTION AGAINST
INEFFECTIVENESS
It is presumed that the legislature intends to impart
its enactments such a meaning as will render them
operative and effective,and to prevent persons from
eluding or defeating them.
5. PRESUMPTION AGAINST
ABSURDITY
Statutes should receive a sensible construction, such
as will give effect to the legislative intention and so
as to avoid an unjust or absurd conclusion.67
Statutes are to be construed in the light of the
purposes to be achieved and the evils sought to be
remedied—the court may consider the spirit and
reason of the statute, where a literal meaning would
lead to absurdity, contradiction, injustice, or would
defeat the clear purpose of the lawmakers. There
exists a valid presumption that undesirable
consequences were never intended by a legislative
measure and that a construction of which the statute
is fairly susceptible is favored which will avoid all
objectionable, mischievous, indefensible, wrongful,
evil and injurious consequences.68
6. PRESUMPTION AGAINST
VIOLATION OF
INTERNATIONAL LAW
It is presumed that a statute is in conformity with
the rules and principles of international laws, or
with treaties, in line with section 2, Article II, of the
Constitution.69
Section 2, Article II of the 1987 Constitution
“The Philippines as a democratic and republic state
adopts the generally accepted principles of
international law as part of the law and adheres to
the policy of peace, equality, justice, freedom,
cooperation, and amity with all nations.”
67
Commissioner of Internal Revenue v. Esso Standard Eastern,
Inc., G.R. Nos. 28502-03, April 18, 1989.
68
Ursua v. Court of Appeals, G.R. No. 112170, April 10, 1996.
69
Agustin v. Edu, G.R. No. L-49112, February 02, 1979.
 STATUTORY CONSTRUCTION
VIII. CONSTRUCTION OF CONFLICTING
STATUTES/CONFLICTING  If both, general and special statutes, are
PROVISIONS irreconcilable, the general statute must give
way to the special or particular provisions as
1. GENERAL RULE HARMONIZE an exception to the general
CONFLICTING STATUTES AND/OR provisions(regardless: general statute is a
PROVISIONS later enactment of the legislature)

When Courts are confronted with apparently Exception

conflicting statutes, should endeavor to reconcile
the same instead of declaring outright the invalidity  There is a manifest intent to repeal or alter
of one as against the other.70 the special law
 General law contains a repealing clause
What are Statutes in Pari Meteria? indicating clearly the legislative intent to
repeal ALL PRIOR INCONSISTENT
 Statutes which relate to the same subject, or LAWS on the subject matter
to the same class of persons or things, or
have the same purpose or object; 3. SUBSTANTIVE LAW
 To be construed together; V.
PROCEDURAL LAW
 Each legislative act is to be interpreted with
reference to other acts relating to the same
It is a well-settled rule that a substantive law cannot
matter or subject.
be amended by a procedural law.73
If statutes of equal theoretical application to a
4. EARLIER LAW
particular case cannot be reconciled, the statute of
V.
later date must prevail being a later expression.
LATER LAW

A general law cannot repeal a special law by mere

2. SPECIAL LAW
implication. The repeal must be express and
V.
specific. If a general law wants to repeal a
GENERAL LAW
prior special law, it must do so by stating the repeal
expressly in its provisions.74
Statutes treating a subject in general terms and
another treating a part of the same subject in
The fact that one is special and the other general
particularly detailed manner, must both be given
creates a presumption that the special is to be
effect by the court.
considered as remaining an exception of the
general, one as a general law of the land, the other
A special law prevails over a general law—
as the law of a particular case. However, the rule
regardless of their dates of passage, and the special
readily yields to a situation where the special statute
is to be considered as remaining an exception to the
refers to a subject in general, which the general
general.71
statute treats in particular.75
It is a basic tenet in statutory construction that
5. STATUTE V. ORDINANCE
between a general law and a special law, the special
law prevails. GENERALIA SPECIALIBUS NON
It is a canon of legal hermeneutics that instead of
DEROGANT. Where a later special law on a
pitting one statute against another in an inevitably
particular subject is repugnant to, or inconsistent
destructive confrontation, courts must exert effort to
with, a prior general law on the same subject, a
reconcile them, remembering that both laws deserve
partial repeal of the latter win be implied to the
a becoming respect as the handiwork of a
extent of the repugnancy or an exception grafted
coordinate branch of the Government.76
upon the general law. A special law must be
intended to constitute an exception to the general
General Rule
law in the absence of special circumstances forcing
a contrary conclusion.72

General Rule
73
Philippine National Bank v. Asuncion, G.R. No. L-46095,
70
Gordon v. Veridiano II, G.R. No. L-55230, November 08, November 23, 1977.
74
1988. People of the Philippines v. Palma, G.R. No. L-44113,
71
Lopez Jr. v. Civil Service Commission, G.R. No. 87119, March 31, 1977.
75
April 16, 1991. Bagatsing v. Ramirez, G.R. No. L-41631, December 17,
72
National Power Corporation v. Presiding Judge, Regional 1976.
Trial Court 10th Judicial Region Branch XXV, Cagayan de 76
Magtajas, et al. v. Pryce Properties Corp., G.R. No. 111097,
Oro City, G.R. No. 72477, October 16, 1990. July 20, 1994.
 STATUTORY CONSTRUCTION
 If both the statute and the ordinance can In Statutory construction, penal laws are always to
stand together, effect should be given to be construed strictly against the State and liberally
both. in favor of the accused.80

Exception Not to be EXTENDED or ENLARGED by:

 If there is conflict between an ordinance and 1. Implications;

a state, the ordinance must give away 2. Intendments; or
3. Analogies or equitable considerations;
6. GENERAL PROVISION
OF A SPECIAL LAW Not to be STRAINED by:
V.
PARTICULAR PROVISION 1. Construction to spell out a new offense;
OF A GENERAL LAW 2. Enlarge the field of crime or multiply the
felonies.
In case of conflict between a general provision of a
special law and a particular provision of a general Principle
law, the latter should prevail (particular provision
of a general law prevails over the general provision  Acts in and of themselves innocent and
of a special law) lawful cannot be held to be criminal
UNLESS there is a clear and unequivocal
7. PROVISIO V. BODY expression of the legislative intent to make
them such.
When there is irreconcilable repugnancy between  Whatever is not plainly within the
the proviso and the body of the statute the former is provisions of a penal statute should be
given precedence over the latter on the ground that regarded as without its intendment.
it is the latest expression of intent of the
legislature.77 3. TAX LAWS

IX. STRICT AND LIBERAL General Rule

CONSTRUCTION
AND Tax Statutes Tax Exemptions
INTERPRETATION Must be construed Are construed strict
OF STATUES strictly against the issimijuris against the
government and taxpayer and liberally
1. CONSTITUTION liberally in favor of the in favor of the taxing
taxpayer. authority.
If the law lays down a general principle it is not self
executing, but if it lays down the specific right that Exception
may be enjoyed or protected, it Is self executing.78
 Where the exemption was granted to private
The framers of the 1987 Constitution intended the parties based on material consideration of a
term “initiate” to start with the filing of the mutual nature, which then becomes
contractual and is this cover by the non-
complaint. That is, it should be understood once and impairment clause of the Constitution.
for all that the initiation of impeachment
proceedings starts with the filing of the Section 5, Article X of the 1987 Constitution
complaint, and the vote of one-third of the House in
a resolution of impeachment does not initiate the “Each local government unit shall have the power to
impeachment proceedings which was already create its own sources of revenues and to levy taxes,
initiated by the filing of a verified complaint under fees, and charges subject to such guidelines and
Section 3, paragraph (2), Article XI of the limitations as the Congress may provide, consistent
Constitution."79 with the basic policy of local autonomy. Such taxes,
fees, and charges shall accrue exclusively to the
2. PENAL LAWS local governments.”

Does the rigid rule of construction apply to the

government?
77
Arenas v. City of San Carlos, G.R. No. L-34024, April 05,
1978.
78
Manila Prince Hotel v. GSIS, G.R. No. 122136, February 03,
1997.
79 80
Francisco v. House of Representatives, G.R. No. 160261, Centeno v. Villlalon-Pornillos, G.R. No. 113092, September
November 10, 2003. 01, 1994.

 Rigid rule of construction does not apply: If
the grantee of the exemption is a political
subdivision or instrumentality.
The rule is that in case of doubt, tax statutes are to
be construed strictly against the Government and
liberally in favor of the taxpayer, for taxes, being
burdens, are not to be presumed beyond what the
applicable statute expressly and clearly declares.81
Tax exemptions must be strictly construed against
the taxpayer and liberally in favor of the state.82
4. LOCAL GOVERNMENT
AND
LOCAL AUTONOMY
5. LABOR AND
SOCIAL LEGISLATION
A liberal interpretation should be adopted in favor
of the employee in deciding claims for
compensability, especially where there is some
basis in the facts for inferring a work connection to
the accident because a social legislation is designed
to afford relief to the working men and women in
our society. Moreover, this kind of interpretation
gives meaning and substance to the compassionate
spirit of the law as embodied in Article 4 of the
New Labor Code which states that “all doubts in the
implementation and interpretation of the provisions
of the Labor Code including its implementing rules
and regulations shall be resolved in favor of labor.”
This is in consonance with the avowed policy of the
State to give maximum aid and protection to
labor.83
6. ADOPTION LAWS
One to whom a 3-day old child was given by its
mother who does not wish to be identified may be
considered as the guardian exercising patria
potestas over such abandoned child and competent
to give consent to the adoption of the latter.84
7. NATURALIZATION LAWS
It is settled that naturalization laws should be rigidly
enforced and strictly construed in favor of the
government and against the applicant.85
8. INSURANCE LAW
81
Republic of the Philippines v. Intermediate Appellate Court
and Spouses Pastor, G.R. No. L-69344, April 26, 1991.
82
Misamis Oriental Association of Coco Traders, Inc. v.
Department of Finance, G.R. No. 108524, November 10,
1994.
83
Lazo v. Employees; Compensation Commission, G.R. No. L-
303576, February 10, 1976.
84
Duncan v. Court of First Instance, G.R. No. L-30576,
February 10, 1976.
85
Ong Chia v. Republic of the Philippines, G.R. No. 127240,
March 27, 2000.
STATUTORY CONSTRUCTION
it is well settled that contracts of insurance are to be
construed liberally in favor of the insured and
strictly against the insurer. Thus ambiguity in the
words of an insurance contract should be interpreted
in favor of its beneficiary.86
9. RETIREMENT LAWS
Retirement laws are liberally construed in favor of
the retiree. The intention is to provide for the
retiree’s sustenance and comfort, when he is no
longer in capable of earning his livelihood.87
10. ELECTION LAWS
Statutes providing for election contests are to be
liberally construed to the end that the will of the
people in the choice of public officers may not be
defeated by mere technical objections.88
11. AGRARIAN REFORM LAWS
It is important to note that the Agricultural Tenancy
Act (RA 1199) and the Agricultural Land Reform
Code (RA 3844) have not been entirely repealed by
the Code of Agrarian Reform (RA 6389) even if the
same have been substantially modified by the latter.
However, even assuming such an abrogation of the
law, the rule that the repeal of a statute defeats all
actions pending under the repealed statute is a mere
general principle. Among the established exceptions
are when vested rights are affected and obligations
of contract are impaired.89
12. EXPROPRIATION LAWS
The exercise of the right of eminent domain is
necessarily in derogation of private rights, and the
rule in that case is that the authority must be strictly
construed.90
13. RULES OF COURT
Section 6, Rule 1 of the 1997 Rules of Civil
Procedure
“Construction. – These rules shall be liberally
construed in order to promote their objective of
securing a just, speedy and inexpensive disposition
of every action and proceeding.”
X. PROSPECTIVE AND RETROACTIVE
STATUTES
86
Finman General Assurance Corp. v. Court of Appeals, G.R.
No. 100970, September 02, 1992.
87
Tantuico Jr. v. Domingo, G.R. No. 96422, February 28,
1994.
88
Pahilan v. Tabalba, G.R. No. 110170, February 21, 1994.
89
Guerrero v. Court of Appeals, G.R. No. L-44570, May 30,
1986.
90
City of Manila v. Chinese Community, G.R. No. L-14355,
October 31, 1919.

1. GENERAL PRINCIPLES
Article 4 of the New Civil Code
“Laws shall have no retroactive effect, unless the
contrary is provided.”
What is a prospective statute?
 Statutewhich operates upon acts and
transactions which have not occurred when
the statute takes effect (regulates the future)
What is a retrospective statute?
 Takes away or impairs vested rights
acquired under existing laws
 Creates new obligations and imposes new
duties
 Attaches new disabilities in respect of
transaction already past
General Rule
 Statutes operate prospectively only and
never retrospectively, UNLESS the
legislative intent to the contrary is made
manifest either by the express terms of the
statute or by necessary implication
Exception
 Retrospective statutes prohibited by the
Constitution91;
 No law impairing the obligation of contracts
shall be passed92;
 No ex post facto law or bill of attainder shall
be enacted93.
The question of whether a statute operates
retrospectively or only prospectively depends on the
legislative intent.94
2. PENAL STATUTES
Article 22 of the Revised Penal Code
“Retroactive effect of penal laws. - Penal Laws
shall have a retroactive effect insofar as they
favor the persons guilty of a felony, who is not a
habitual criminal, as this term is defined in Rule 5
of Article 62 of this Code, although at the time of
the publication of such laws a final sentence has
been pronounced and the convict is serving the
same”
Article 366 of the Revised Penal Code
91
Article III, 1987 Constitution
92
Section 10, Article III, 1987 Constitution
93
Section 22, Article III, 1987 Constitution
94
Commissioner of Internal Revenue v. Lingayen Gulf Electric
Power Co., Inc., G.R. No. L-23771, August 03, 1988.
STATUTORY CONSTRUCTION
“Application of laws enacted prior to this Code. -
Without prejudice to the provisions contained in
Article 22 of this Code, felonies and misdemeanors,
committed prior to the date of effectiveness of this
Code shall be punished in accordance with the Code
or Acts in force at the time of their commission”
General Rule
 Penal statutes (RPC) are prospective in
operation in that, felonies and misdemeanors
are punished under the laws in force at the
time of their commission.
Exception
 Penal statutes can be given retroactive effect
IF it is favorable to the accused who is not a
habitual criminal.
3. PROCEDURAL LAWS
Statutes regulating the procedure of the Court will
be construed as applicable to actions pending and
undetermined at the time of their passage
Procedural laws have retroactive application.95
The general rule that statutes are prospective and
not retroactive does not ordinarily apply to
procedural laws. The fact that procedural statutes
may somehow affect the litigants’ rights may not
preclude their retroactive application to pending
actions. The retroactive application of procedural
laws is not violative of any right of a person who
may feel that he is adversely affected. Nor is the
retroactive application of procedural statutes
constitutionally objectionable. The reason is that as
a general rule no vested right may attach to, nor
arise from, procedural laws.96
General Rule
 Procedural Rules are retrospective.
Exception
 If it would result in great injustice and
impair substantive right.
What are curative statutes?
 Undertake to cure errors and irregularities
and administrative proceedings;
 Are designed to give effect to contracts and
other transactions between private parties
which otherwise would fail of producing
their intended consequences by reason of
95
Yakult Philippines v. Court of Appeals, G.R. No. 91856,
October 05, 1990.
96
Tan v. Court of Appeals, G.R. No. 136368, January 16,
2002.
 STATUTORY CONSTRUCTION
some statutory disability or failure to
comply with some technical requirement;
 Retroactive and validly accepted in this
jurisdiction subject to the usual
disqualification against impairment of
vested rights.