Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

STATUTORY CONSTRUCTION • When the law is examined, the unequivocal intention of the Philippine
FINALS REVIEWER Congress is for the intensification of exploration for petroleum even if no
taxes, both national and local, may be collected from the industry.

CHAPTER 7 • Republic Act No. 1394 or the Special Import Tax indicates in its title that it
is repealing six prior statues. It is apparent that RA No. 387, the Petroleum
EXTRINSIC AIDS IN CONSTRUCTION AND INTERPRETATION
Act, has been spared from the enumeration.

CASE NO 7.01
Statutory Construction Rule: EXTRINSIC AIDS

Commissioner of Customs vs. ESSO Standard Eastern Inc.

• It is a well-appreciated principle that where a statute is ambiguous, courts
may examine both the printed pages of the published Act as well as those
Facts:
extrinsic matters that may aid in construing the meaning of the statute.

• ESSO is a holder of Refining Concession No. 2 issued by the Secretary of

• Extrinsic Aids, such as the history of the enactment of the statute, the
Agriculture and Natural Resources and operates a petroleum refining plant
reason for the passage of the bill, and purposes to be accomplished by
in Limay, Bataan.

the measure, may be used to determine the true intent of the law making
body.

• Article 103, Republic Act No. 387 (Petroleum Act of 1949)

“During the 5 years following the granting of any concession, the

concessionaire may import free of customs duty, all machinery,
material, instruments, supplies and accessories.”

• Respondent imported materials and supplies for which it was assessed to

pay the special import tax.

• ESSO paid the said import tax under protest.

• Collector of Customs - Dismissed the protest and held that ESSO was
subject to the payment of the special import tax.

• Commissioner of Customs - Affirmed the decision of the Collector of

Customs.

• Court of Tax Appeals - On appeal, the decision was reversed and a

refund was ordered in favor of ESSO in the amount of Php 775.62.

Issue:
• Whether or not the exemption enjoyed by ESSO from customs duties
under the Petroleum Act of 1949 also covers the special import tax
imposed by the Special Tax Law.

Ruling:
• The title of the Petroleum Act of 1949 and the provisions of its three
articles Art. 102, 103, and 104 give a clue to the intent of the Philippine
Legislature, which is to encourage the exploitation and development of the
petroleum resources of the country.

Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

CASE NO 7.02 CASE NO 7.03

Misael P. Vera vs. Fair Trade Board
Facts:
• Commissioner of Internal Revenue ordered the withdrawal from the market
all filled milk products of the respondent which do not bear the inscription
required by Sec. 169 of the Tax Code within 15 days from receipt of the
Philippine Association of Free Labor Unions (PAFLU) vs. Bureau of
Labor Relations
Facts:
• Respondent NAFLU obtained 429 votes as against the 414 votes of
petitioner PAFLU in a certification election.

order.
• Rules and Regulations implementing the present Labor Code: A majority
of the valid votes cast suffice fro certification of the victorious labor union
• Section 169 of the Tax Code provides:
as the sole and exclusive bargaining agent. Thus, Carmelo C. Noriel
certified that NAFLU is the executive bargaining agent of all the employees
“Section 169 - Inscription to be placed on skimmed milk.
in the Philippines Blooming Mills Co., Inc.

This milk is not suitable for nourishment for infants less than one
• Petiotioner objected and relied upon the case of Allied Workers
year of age, or with other equitable words.”
Association vs. CIR which held that spoiled ballots should be counted in
determining the valid votes cast.

• Respondent Court issued a decision restraining the defendant, CIR from • Since there were 17 spoiled ballots, it is the contention that there was
requiring the inscription.
grave abuse of discretion on the part of the respondent Director.

Issue: Issue:
• Whether or not skimmed milk is different from filled milk.
• Whether or not the spoiled ballots must be counted.

Ruling: Ruling:
• Skimmed milk is different from filled milk. According to the Definitions, • Implicit in the comment of the respondent Director of the Labor Relations,
Standards of Purity, Rules and Regulations of the Bureau of Food considered as a new answer, is the controlling weight to be accorded in
Inspection, skimmed milk is milk in in whatever form from which the fatty implementing the rule-above cited, no inconsistency being shown
part has been removed. Filled milk is any milk to which has been added between such rules and the present Labor Code. Under such a view, the
blended or compounded with any fat or oil other than milk fat, so that the ruling in the Allied Workers Association case that arose during the period
resulting product is an imitation or semblance of milk cream or skimmed when it was the Industrial Peace Act that was in effect and not the present
milk.
law, no longer possesses relevance. It cannot and should not be applied.

• The difference therefore, between skimmed milk and filled milk is that in
the former the fatty part has been removed while in the latter the fatty part Statutory Construction Rule: EXTRINSIC AIDS

has been likewise removed but is substituted with refined coconut oil or • Assuming ambiguity in the applicable statute, it must receive a
corn oil or both. It cannot the be readily or safely assumed that Section construction in accordance with and not in disregard of the cardinal
169 of the Tax Code applies both to skimmed milk and filled milk.
postulate of a public office being a public trust.

• The Board of Food Inspection rendered an opinion in 1961 that filled milk • Contemporaneous construction placed upon the statute by executive
does not come within the purview of Section 169, it being a product officers charged with implementing and enforcing the provisions of the
distinct from those specified in the said Section.
statutes should be given controlling weight, unless such interpretation is
clearly erroneous.

Statutory Construction Rule: EXTRINSIC AIDS

• Opinions and rulings of officials of the government called upon to execute

or implement administrative laws command such respect and weight.

Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

CASE NO 7.04 CASE NO 7.05

Cecilio S. De Villa vs. Court of Appeals National Police Commission vs. Honorable Judge Salvador De Guzman

Facts: Facts:
• Cecilio S. De Villa was charged before the Regional Trial Court of the • Sec. 39, RA No. 6975 mandated the implementation of the compulsory
National Capital Region Judicial Region with violation of Batas Pambansa retirement of PNP officers. The law provided for a uniform retirement
Bilang 22.
system for the PNP members.

• The check in question was executed and delivered by the De Villa to the • Sec. 39 places the compulsory retirement age at fifty-six years old.

private respondent in Makati, Metro Manila.

• The National Police Commission sent notices to the respondents who are
• Petitioner argues that check in question was drawn against a dollar all members of the defunct Philippine Constabulary and have reached the
account with a foreign bank of the petitioner and is not covered by BP Blg. age of fifty-six.

22.
• Respondents argued that the age of retirement set at fifty-six by Section
39 of RA 6975 cannot be applied to them since they are also covered by
Issue: Sec. 89 thereof (INP).

• Whether or not a dollar account is covered by BP Blg 22.

• Respondents argue that the four year transition period in Sec. 89 applies
both to former members of the Philippine Constabulary and the the
Ruling: Integrated National Police Force.

• The records of the Batasan, Volume III, unmistakably show the intention of • The Petitioners believe otherwise. They aver that Sec. 89 only applies to
the lawmakers to apply the law to whatever currency may be the subject the local police force and that the retirement age for the PC has already
thereof.
been set at 56 under AFP Law.

• RTC Ruled in favor of the private respondents.

Statutory Construction Rule: EXTRINSIC AIDS

• Courts may avail themselves of the actual proceedings of the legislative Issue:
body to assist in determining the construction of the statue of doubtful • Whether or not RA. No. 6975 distinguishes INP from PC.

meaning.

Ruling:
• The use of the term INP is not synonymous with PC. The law itself
distinguishes INP from the PC and it cannot be construed that “INP” as
used in Sec. 89 includes the members of the PC.

Statutory Construction Rule: EXTRINSIC AIDS

• In case of doubt as to what a provision of a statue means, the meaning

put to the provision during the legislative deliberations may be adopted.

• Courts should not give a literal interpretation to the letter of the law if it
runs counter to the legislative intent.

Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

CASE NO 7.06
Casco Philippine Chemical Co., Inc. vs. Hon. Pedro Gimenez
Facts:
• Casco Philippines Chemical Co., Inc. engaged in the manufacture of
synthetic resin glues bought foreign exchange for the importation of urea
and formaldehyde which are main raw materials in the production of resin
CASE NO 7.07
Municipality of Nueva Era, Ilocos Norte vs. Municipality of Marcos
Facts:
• The Municipality of Nueva Era was created by virtue of Executive Order
No. 66, uniting the rancherias forming said municipality.

glues and paid the corresponding margin fees imposed by the Central • The Municipality of Marcos was created pursuant to RA No. 3753.

Bank.
• Based on the first paragraph of Section 1 of RA No. 3753, it is clear that
• Casco sought the refund of these margin fees relying upon Resolution No. the Municipality of Nueva Era or any of its barangays was not mentioned.
1529 of the Monetary Board of the Central Ban, declaring the separate Hence, it is not a source of territory of Marcos.

importation of urea and formaldehyde.

• The problem lies in the description of Marcos’ boundaries claiming that
• The auditor refused to pass in audit and approve the refund upon the the middle area of Nueva Era as a part thereof.

ground that the exemption is not in accord with Sec. 2, Par. XVIII of RA. • Marcos submitted its claim to the Sangguniang Panlalawigan of Ilocos
No. 2609.
Norte which the same dismissed ruling in favor of Nueva Era.

• Sec. 2, Par. XVIII of RA. No. 2609 provides:

Issue:

• Whether or not the eastern boundary of Marcos extends over and covers a
“XVIII. Urea formaldehyde for the manufacture of plywood and portion of Nueva Era.

hardboard when imported by and for the exclusive use of end-users.”

Ruling:
Issue: • Upon examination of the explanatory note, only Dingras is specifically
• Whether or not urea and formaldehyde are exempt by law from the named by law as source of territory of Marcos. Hence, the said description
payment of the aforesaid margin fee.
of boundaries of Marcos is descriptive only of the listed barangays of
Dingras as a compact and contiguous territory.

Ruling:
• Urea and Formaldehyde are the principal raw materials in the manufacture Statutory Construction Rule: EXTRINSIC AIDS

of synthetic resin glue. Urea formaldehyde is a finished product which is • Where there is ambiguity in a statue, as in the case, courts may resort to
patently distinct and different from urea and formaldehyde, as separate the explanatory note to clarify the ambiguity and ascertain the purpose
articles used in the manufacture of the synthetic resin known as urea and intent of the statue.

formaldehyde.

• The petitioner’s contention that members of the congress intended to

exempt urea and formaldehyde as separate elements and not urea
formaldehyde as a finished product due to statements made during the
consideration of the bill before the Senate is untenable.

• Furthermore, it is well-settled that the enrolled bill is conclusive upon the

courts as regards to the tenor of the measure passed by Congress and
approved by the President.

• Applying the rules of statutory construction, individual statements by

members of the Congress on the floor do not necessarily reflect legislative
intent.

Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

CHAPTER 8 CASE NO 8.02

STRICT AND LIBERAL CONSTRUCTION AND INTERPRETATION Cesario Ursua vs. Court of Appeals
OF STATUTES
Facts:
CASE NO 8.01 • Atty. Palmones, counsel for the petitioner Cesario, wrote to the Office of
Martin Centeno vs. Hon. Victoria Villalon-Pernillos the Ombudsman requesting that he be furnished with a copy of the
complaint against his client.

Facts: • Upon instruction by Palmones, Ursua brought the letter-request to the

Office of the Ombudsman because his law firm’s messenger Oscar Perez
• Samahang Katandaan ng Nayon ng Tikay launched a fund drive fro the
purpose of renovating the chapel of Barrio Tikay, Malolos, Bulacan.
has to attend to some personal matters.

• Petitoner Centeno together with Vicente Yco approached Judge • Instead of writing his name in the vistor’s logbook and receipt of
Adoracion G. Angeles and solicited from her a contribution of Php 1,500.
acknowledgement (from the Chief of the Administrative Division Loida
Kahulugan), Ursua wrote the name of Oscar Perez.

• It is admitted that the solicitation was made without permit from the
Department of Social Welfare and Development.
• Loida Kahulugan reported the matter to the Deputy Ombudsman.

• Judge Aggeles filed an information against petitioner fro violation of PD • Petitioner filed a demurrer to evidence alleging that his supposed alias
No. 1564 or the Solicitation Permit Law.
was different from his registered name in the local civil registrar and was
fatal to its cause, a sine qua non requirement for the validity of conviction.

• Petitioner argues that the facts alleged do not constitute an offense

because only solicitation made for charitable or public welfare purposes,
but not for religious purposes, are covered by said decree.
Issue:
• The trial court finding accused Centeno and Yco guilty beyond reasonable • Whether or not the use of a different name belonging to another in an
doubt sentencing them to pay a fine of Php 200 each.
isolated transaction falls within the prohibition of C.A. No. 142 or the Anti-
Alias Law.

• On appeal, the RTC affirmed the decision of the lower court but modified
the penalty to 6 months of imprisonment and a fine of Php 1000.

Ruling:
Issue: • The use of fictitious name or a different name belonging to another person
in a single isolated transaction without intention to be known by that name
• Whether or not the phrase “charitable purposes” should be construed in
its broadest sense so as to include a religious purpose.
from that day forth does not violate the Anti -Alias Law.

Ruling: Statutory Construction Rule:

• The term “charitable” shall be strictly construed so as to exclude • Chapter 5 (Presumptions) Statutes should be construed with reference to
solicitations for “religious” purposes. Thereby, we adhere to the the intended scope and purpose. Fraud and confusion in business
fundamental doctrine underlying virtually all penal legislations that such transactions, not present in this case.

interpretation should be adopted as would favor the accused.

• Chapter 8 (Pena Statues) Penal Statues should be construed liberally in
favor of the accused.

Statutory Construction Rule:

• Penal Statutes should be construed strictly against the State and in favor
of the accused.

Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

CASE NO 8.03 CASE NO 8.04

People vs. Walpan Ladjaalam Commissioner of Internal Revenue vs. La Todeña Distillers, Inc.

Facts: Facts:
• Walpan Ladjaalam was charged and convicted of the crime Direct Assault • La Toñdena Distillers, Inc. entered into a merger with Sugarland Beverage
with Multiple Attempted Homicide for firing on an unlicensed M-14 rifle at Corporation (SBC), SMC Juice Inc. (SMCJI), and Metro Bottle Water
several policemen who were about to enter his house to serve a search Corporation (MBWC) changing its corporate name to Ginebra San Miguel,
warrant.
Inc. (GSMI).

• Ladjaalam was likewise convicted of Illegal Possesion of Firearm and • As a result of the merger, the assets and liabilities of the absorbed
Ammunition penalized under PD. 1866, as amended by RA. No. 8294.
corporations were transferred to respondent, the surviving corporation.

• Under Section 196 of the NIRC, transfer of assets, such as real properties,
Issue: shall be subject to documentary stamp tax.

• Whether or not the accused appellant can be convicted of Illegal • Respondent paid to BIR the DST in the amount of Php 14,140,980.00.

Possession of Firearm under RA. 8294 when he used said firearm in the • Respondent filed with the CIR a claim for tax refund or tax credit in the
commission of another crime.
same amount, representing the DST erroneously paid.

• The 2nd Division of the CTA ruled in favor of the respondents. Sec. 196,
Ruling: NIRC does not apply because there is no purchaser or buyer in the case of
• Section 1, RA. No. 8294 provides:
a merger.

• On appeal, CTA En Banc affirmed the decision.

“Provided, that no other crime was committed.

Issue:
If homicide or murder is committed with the use of an unlicensed • Whether or not property absorbed by the surviving corporation in amerger
firearm, such use of an unlicensed firearm shall be considered as an is exempt from the payment of DST.

aggravating circumstance.”

• A simple reading thereof shows that if an unlicensed firearm is used in the
commission of any crime, there can be no separate offense of simple
illegal possession of firearms. Hence, if the other crime is murder or
homicide, illegal possession of firearms becomes merely an aggravating
Ruling:
• Sec. 129 of the NIRC does not include the transfer of real property from
one corporation to another pursuant to a merger. A perusal of the subject
provision would clearly show it pertains only to sale transactions where
real property is conveyed to a purchaser for a consideration.

circumstance - not a separate offense.

• The law is clear, the accused can be convicted of simple illegal possession
• In this case, the appellant cannot be convicted of two separate offense of of firearms, provided that no other crime was committed by the person
illegal possession of firearms and direct assault with attempted homicide. arrested.

Moreover, since the crime committed was direct assault and not homicide • In a merger, the real properties are not deemed “sold” to the surviving
or murder, illegal possession of firearms cannot be deemed an aggravating corporation and the latter could not be considered a “purchaser”, real
circumstance.
properties subject of the merger are deemed absorbed by the surviving
• The law is clear, the accused can be convicted of simple illegal possession corporation by operation of law. Hence, Sec. 196 of the Tax Code is
of firearms, provided that no other crime was committed by the person inapplicable and the respondent is not liable for DST.

arrested.

Statutory Construction Rule:

• Taxes must not be imposed beyond what the law expressly and clearly
Statutory Construction Rule:
declares as tax laws must be construed strictly against the state and
• Penal laws are contrued liberally in favor of the accused.
liberally in favor of the taxpayer.

Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

CASE NO 8.05 CASE NO 8.06

Republic of the Philippines vs. Intermediate Appellate Court and Sps. Acting Commissioner of Customs v. Manila Electric Company and CTA
Antonio and Clara Pastor
Facts:
Facts: • Meralco imported insulating oil for use in its plant operations.

• BIR commenced an action to collect from the spouses Antonio Pastor and • Meralco imported insulating oil for use in its plant operations.

Clara Pastor deficiency income taxes for the years 1955 to 1959.
• Acting Commissioner of Customs Norberto Romualdez held that these
• The spouses filed a motion to dismiss the complaint which was denied.
insulating oils are subject to a special import tax, in which Meralco had to
• Spouses contended that they availed of the tax amnesty under PD Nos. pay P995, under protest.

23, 213, and 370 and had paid the corresponding amnesty taxes.
• Meralco claims that the insulating oils are exempt by virtue of:

• Consequently, by accepting the payment of the amnesty income taxes, o Sec. 6 of RA No. 1394 – exempts equipment and spare
the Government waived its right to further recover deficiency income taxes parts for use in industries from the special import tax

from the defendants. The Government is estopped to demand and compel o Par. 9, Part Two of Meralco’s Franchise – expressly
further payment of income taxes.
exempts insulators from taxes of whatever kind and
nature in consideration for the payment of the percentage
Issue: tax on its gross earnings

Ruling: • The Court of Tax Appeals (CTA) reversed the holding of the
• The Pastor spouses have already paid almost the equivalent amount of the Commissioner of Customs. Citing Gregory J. Brady’s Materials
deficiency to the Government by way of amnesty taxes under PD. No. Handbook, it considered insulating oils as insulator because insulating
213, and were granted not merely an exemption but an amnesty, for their oils are used for cooling as well as for insulating. It also cited the use
past tax failings. Hence, the Government is estopped.
of Meralco for said oils, in oil circuit breakers where they are required
• A tax amnesty being a general pardon or intentional overlooking by the to maintain insulation between the contacts inside the tank and the
State, partakes of an absolute forgiveness or waiver by the Government of tank itself.

its right to collect what otherwise would be due to it.

Issue: Whether or not the claim for exemption from the tax statute be strictly
Statutory Construction Rule:
construed against the respondent Meralco.

• As a rule, 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.
provision should be construed strictissimi juris. Regarding the construction
Ruling:
• The law frowns on exemption from taxation, hence, an exempting
of tax statutes and citing JBL Reyes in Republic Flour Mills v CIR, “"It is
true that in the construction of tax statutes tax exemptions are not favored
in the law, and are construed strictissimi juris against the taxpayer.
However, it is equally a recognized principle that where the provision of the
law is clear and unambiguous, so that there is no occasion for the court's
seeking the legislative intent, the law must be taken as it is, devoid of
judicial addition or subtraction.”

Statutory Construction Rule:

• Tax exemption must be strictly construed against the taxpayer and

liberally in favor of the state. 

Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

CASE NO 8.07 CASE NO 8.08

Misamis Oriental Association of Coco Traders, Inc. vs. Department of Resins, Incorporated vs. Auditor General of the Philippines and Central
Finance Secretary Bank of the Philippines

Facts: Facts:
• Petitioner Misamis Oriental Association of Coco Traders, Inc. is a domestic • Resins Inc. is a manufacturer of synthetic glue.

corporation whose members, individually or collectively, are engaged in • Petitioner Resins, Inc., seeks a refund from the respondent Central Bank
the buying and selling of copra in Misamis Oriental.
on the claim that it was exempt from the margin fee under RA. No. 2609
• Petitioners alleged that prior to the issuance of Revenue Memorandum for the importation of urea and formaldehyde, as separate units, used for
Circular 47-91, which implemented VAT Ruling 190-90, copra was the importation of synthetic glue.

classified as agricultural food product under Sec. 103 (a) of the National
Internal Revenue Code and therefore exempt from VAT at all stages of Issue: Whether or not the refund can be granted.

production or distribution.

• Sec. 103 (b), NIRC provides that the sale of agricultural non-food products Ruling:
in their original state is exempt from VAT only if the sale is made by
primary producer or owner of the land from which the same are produced. • The specific language of the Act speaks of “urea formaldehyde” and
Hence, sale made by any other person of agricultural non-food products is petitioner admittedly imported urea and formaldehyde separately. Hence,
not exempt from tax.
it cannot be granted any refund.

• The reclassification had the effect of denying to ten petitioner the • As a refund undoubtedly partakes of a nature of an exemption, it cannot
exemption it previously enjoyed when copra was classified as an be allowed unless granted in the most explicit and categorical language.

agricultural food product under Sec. 103 (b) of the NIRC.

Statutory Construction Rule:

Issue: Whether or not copra is an agricultural food or non-food product.

• Exemption from taxation is not favored and is never presumed, so that if
granted it must be strictly construed against the taxpayer.

Ruling: • An exempting provision should be construed strictissimi juris. 


• In interpreting Section 103 (a) and (b) of the NIRC, the Commissioner of
Internal Revenue gave a strict construction consistent with the rule that
tax exemptions must be strictly construed against the taxpayer and
liberally in favor of the state.

• Copra per se is not food, that is, it is not intended for human consumption.

Statutory Construction Rule:

• Tax exemption must be strictly construed against the taxpayer and

liberally in favor of the state.

Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

CASE NO 8.09 CASE NO 8.10

Rhom Apolo Semiconductor Philippines vs. CIR Ong Chia vs. Republic of the Philippines

Facts: Facts:
• Petitioner Rhom Apollo is a domestic Corporation registered with the • Petitioner was born in Amoy, China. In 1932, when he was nine years old,
Securities and Exchange Commission and the Philippine Economic Zone he arrived at the port of Manila.

Authority.
• Since then he has stayed in the Philippines, has been employed and
• Rhom Apollo is in the business of manufacturing semi-conductor products eventually started his own business, married a Filipina and begot four
at the People’s Technology Complex - Special Economic Zone, Carmona children.

Cavite.
• At the age of 66 he filed a verified petition to be admitted as a Filipino
• Rhom Apollo engaged the services of Shimizu Philippine Contractors, Inc. citizen by virtue of C.A. No. 473 or the Revised Naturalization Law.

for the construction of a factory.

• The trial court granted the petition and admitted petitioner to Philippine
citizenship.

Issue: • The State, through the OSG, appealed contending that the petitioner:

1. Failed to state all the names by which he is or had been known.

Ruling: 2. Failed to state all his former places of residence. (Sec. 7)

3. Failed to conduct himself in a proper and irreproachable manner

during his entire stay in the Philippines. (Sec. 2)

4. Has no known lucrative trade of occupation and his previous

incomes have been insufficient or misdeclared (Sec. 2)

5. Failed to support his petition with the appropriate documentary

evidence.

• The CA reversed the decision of the trial court.

Issue: Whether or not the documents annexed by the State to its appellant’s
brief without having been presented and formally offered as evidence under
Rule 132, Section 34 of the Revised Rules on Evidence justified the reversal
of the Trial Court’s decision.

Ruling:
• A final favorable judgement does not preclude the State from later on
moving for a revocation of the grant of naturalization on the basis of the
same document.

• It is settled that naturalization laws should be rigidly enforced and strictly

construed in favor of the government and against the applicant. As noted
by the State, C.A. No. 473, Sec. 7 clearly provides that the applicant for
naturalization shall set forth in the petition his present and former places of
residence. On this ground alone, the instant petition ought to be denied.

Statutory Construction Rule:

Naturalization laws should be rigidly enforced and strictly construed in favor
Statutory Construction Rule:
of the government and against the applicant.

Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

CASE NO 8.11 CASE NO 8.12

Finman General Assurance Corporation vs. CA Government Service Insurance System vs. Marian T. Vicencio

Facts: Facts:
• Deceased Carlie Surposa was insured with the petitioner Finman General • Judge Vicencio died due to Cardiopulmonary Arrest and Fatal Arrhythmia.

Assurance Corporation.
• Judge Vicencio was survived by his wife Mrs. Vicencio and daughter Mary
• Carlie Suposa died as a result of a stab wound inflicted by one of the three Joy.

unidentified men without provocation and warning on the part of the • Mrs. Vicenio applied for the death benefits of her late husband with GSIS
former as he nad his cousin were waiting fir a ride on their way home after but her application was denied on the ground that the illness that caused
attending the Maskarra Annual Festival.
the death is not an occupational disease and is not work-related.

• Private respondent and other beneficiaries filed a written notice of the • Motion of reconsideration was also denied.

claim with Finman.

• Finman denied said claim contending that murder and assault are not Issue: Whether or not Mrs. Vicencio’s claim for death benefits under PF No.
within the scope of the coverage of the insurance policy.
626 is compensable.

• RTC and CA ruled in favor of the private respondent.

• Finman argued that in a personal accident policy since death resulting
from murder and/or assault are impliedly excluded in said insurance policy
considering that the cause of death of the insured was not accident but
rather a deliberate and intentional act pf the assailant in killing the former.
disability, illness, and other contingencies resulting in the loss of income.
Ruling:
• PD. No. 626 is a social legislation whose primordial purpose is to provide
meaningful protection to the working class against the hazards of

• There should be liberal attitude in favor of the employee in deciding claims

Issue: Whether or not death resulting from assault or murder is deemed for compensability especially where there is some basis in the facts for
included in the terms “accident’ and “accidental”.
inferring a work-connection with the illness or injury, as the case may be.

• Cardiopulmonary Arrest and Fatal Arrhythmia should be considered as a

Ruling: cardiovascular disease - a listed disease under Annex “A” of the Amended
• Yes. It cannot be pretended that Carlie Surposa died in the course of an Rules on Employees Compensation.

assault or murder as a result if his voluntary act of considering the very • What the law requires is a reasonable work connection and not a direct
nature of these crimes.
casual relation.

• The fact remains that the happening was a pure accident on the part of the • Probability, not certainty, is the touchstone.

victim, without his foresight or expectation.

• Furthermore, the personal accident insurance policy involved only 10 Statutory Construction Rule:

enumerated circumstances wherein no liability should attach to the • Doubts in interpretation of Workmen’s Compensation and Labor Code
insurance company. Murder and assault, not having been expressly should be resolved in favor of the worker - Art. 4, New Labor Code.

included therein, cannot discharge the insurance company from liability.

Statutory Construction Rule:

• 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 beneficiaries.

Bullet Reviewer Statutory Construction Malaluan | UST Law 1-A

CASE NO 8.13 CASE NO 8.14

Maria Manahan vs. Employees Compensation Commission and GSIS Salvador Lazo vs. Employees Compensation Commission and GSIS

Facts: Facts:
• Nazario Manahan Jr. was employed as a classroom teacher in Ls Pinas • Salvador Lazo is a security guard of Central Bank Malate, Manila. His
Municipal High School, Las Pinas, Rizal when he died due to Enteric regular tour of duty is from 2:00 - 10:00 pm.

Fever.
• On June 18, 1986, he rendered overtime duty up to 5:00 pm as the
• Maria Manahan, wife of the deceased, filed a claim the the GSIS for death security guard who was to relieve him failed to arrive.

benefit under PD. No. 626. Claim was denied on the ground that typhoid • On his way home at about 6:00 the following morning, he met an accident
fever is not an occupational disease.
as the passenger jeep he road suddenly turned turtle.

• Motion for reconsideration on the ground that deceased was in perfect • As a result he sustained injuries and was taken to the Angono Emergency
health when admitted to service. Denied.
Hospital for treatment.

• For injuries he sustained, petitioner filed a claim for disability benefits

Issue: Whether or not Maria Manahan’s claim for death benefits under PF under PD. 626, as amended.

No. 626 is compensable.

• Claim was denied for the reason that he was not at his workplace
performing his duty when the incident occurred.

Ruling: • Petitioner contends that the injuries were sustained as arising out of or in
• The medical record shows that the deceased has a hostory of ulcer-like the course of employment and thus, compensable.

symptoms. Manahan was treated for epigastric pain probably due to

hyperacidity. Epigastric pain is a symptom of ulcer, and ulcer is a common Issue: Whether or not Lazo entitled to disability benefits.

complication of typhoid fever.

• The illness that claimed the life of the deceased could have had its onset Ruling:
months before December 10, 1974. Such being the case his cause of • There is no evidence on record that petitioner deviated from his usual,
action accrued before December 10, 1974.
regular, homeward route or that interruption occurred in the journey.

• In any case, we have always maintained that in case of doubt, the same • Liberality of the law in general in favor of the workingman especially where
should be resolved in favor of the worker and that social legislation should there is some basis in the facts for inferring a work connection to the
be liberally construed to attain their laudable objective.
accident.

• There is no reason, in the principle, why employees should not be

Statutory Construction Rule:
protected for a reasonable period of time prior to or after working hours
• Doubts in interpretation of Workmen’s Compensation and Labor Code and a reasonable distance before reaching or after leaving the employer’s
should be resolved in favor of the worker - Art. 4, New Labor Code.
premises.

Statutory Construction Rule:

• The sympathy of the law on social security is towards its beneficiaries and
the law by its own terms, requires a construction of utmost liberality in
their favor.