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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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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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
A Short View of the Laws Now Subsisting with Respect to the Powers of the East India Company
To Borrow Money under their Seal, and to Incur Debts in
the Course of their Trade, by the Purchase of Goods on
Credit, and by Freighting Ships or other Mercantile
Transactions