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Mirasol VS Ca

The case Mirasol vs CA involves the Mirasols, sugarland owners, challenging the constitutionality of Presidential Decree No. 579, which authorized PNB to manage sugar export proceeds. The court held that Regional Trial Courts have the authority to declare statutes unconstitutional and emphasized the necessity of notifying the Solicitor General in such cases. The ruling clarifies that the mandatory notice requirement applies to all actions, not just those involving declaratory relief.

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0% found this document useful (0 votes)
19 views1 page

Mirasol VS Ca

The case Mirasol vs CA involves the Mirasols, sugarland owners, challenging the constitutionality of Presidential Decree No. 579, which authorized PNB to manage sugar export proceeds. The court held that Regional Trial Courts have the authority to declare statutes unconstitutional and emphasized the necessity of notifying the Solicitor General in such cases. The ruling clarifies that the mandatory notice requirement applies to all actions, not just those involving declaratory relief.

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readsinheels
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CONSTITUTIONAL LAW II DIGEST court.

We must stress that, contrary to petitioners' stand, the


mandatory notice requirement is not limited to actions
involving declaratory relief and similar remedies. The rule
MIRASOL VS CA
itself provides that such notice is required in "any action" and
[351 SCRA 44; G.R. No. 128448; 1 Feb 2001]
not just actions involving declaratory relief. Where there is no
ambiguity in the words used in the rule, there is no room for
Facts:
construction. 15 In all actions assailing the validity of a
statute, treaty, presidential decree, order, or proclamation,
The Mirasols are sugarland owners and planters. Philippine
notice to the Solicitor General is mandatory.
National Bank (PNB) financed the Mirasols' sugar production
venture FROM 1973-1975 under a crop loan financing
Petitioners contend that P.D. No. 579 and its implementing
scheme. The Mirasols signed Credit Agreements, a Chattel
issuances are void for violating the due process clause and
Mortgage on Standing Crops, and a Real Estate Mortgage in
the prohibition against the taking of private property without
favor of PNB. The Chattel Mortgage empowered PNB to
just compensation. Petitioners now ask this Court to exercise
negotiate and sell the latter's sugar and to apply the
its power of judicial review.
proceeds to the payment of their obligations to it.
Jurisprudence has laid down the following requisites for the
President Marcos issued PD 579 in November, 1974
exercise of this power: First, there must be before the Court
authorizing Philippine Exchange Co., Inc. (PHILEX) to
an actual case calling for the exercise of judicial review.
purchase sugar allocated for export and authorized PNB to
Second, the question before the Court must be ripe for
finance PHILEX's purchases. The decree directed that
adjudication. Third, the person challenging the validity of the
whatever profit PHILEX might realize was to be remitted to
act must have standing to challenge. Fourth, the question of
the government. Believing that the proceeds were more than
constitutionality must have been raised at the earliest
enough to pay their obligations, petitioners asked PNB for an
opportunity, and lastly, the issue of constitutionality must be
accounting of the proceeds which it ignored. Petitioners
the very lis mota of the case.
continued to avail of other loans from PNB and to make
unfunded withdrawals from their accounts with said bank.
PNB asked petitioners to settle their due and demandable
accounts. As a result, petitioners, conveyed to PNB real
properties by way of dacion en pago still leaving an unpaid
amount. PNB proceeded to extrajudicially foreclose the
mortgaged properties. PNB still had a deficiency claim.

Petitioners continued to ask PNB to account for the


proceeds, insisting that said proceeds, if properly liquidated,
could offset their outstanding obligations. PNB remained
adamant in its stance that under P.D. No. 579, there was
nothing to account since under said law, all earnings from
the export sales of sugar pertained to the National
Government.

On August 9, 1979, the Mirasols filed a suit for accounting,


specific performance, and damages against PNB.

Issue:

Whether or not the Trial Court has jurisdiction to declare a


statute unconstitutional without notice to the Solicitor
General where the parties have agreed to submit such issue
for the resolution of the Trial Court.

Whether PD 579 and subsequent issuances thereof are


unconstitutional.

Whether or not said PD is subject to judicial review.


Held:

It is settled that Regional Trial Courts have the authority and


jurisdiction to consider the constitutionality of a statute,
presidential decree, or executive order. The Constitution
vests the power of judicial review or the power to declare a
law, treaty, international or executive agreement, presidential
decree, order, instruction, ordinance, or regulation not only in
this Court, but in all Regional Trial Courts.

The purpose of the mandatory notice in Rule 64, Section 3 is


to enable the Solicitor General to decide whether or not his
intervention in the action assailing the validity of a law or
treaty is necessary. To deny the Solicitor General such
notice would be tantamount to depriving him of his day in

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