REMEDIAL LAW REVIEW G.R. No. 114331 May 27, 1997 (Sorry for the long digest!) [03] VIRATA v. SANDIGANBAYAN a!"#$
Petitio Petitioner ner Cesar E. A. Virata Virata is one of the defendan defendants ts in Civil Civil Case Case No. 0035, entitled entitled Republic Republic of the Philippines Philippines versus versus Benjamin Benjamin (Kokoy) Romualdez, et . al .... he ase, "hih "as filed #y the Presidential Co$$ission on %ood %overn$ent against fifty three &ersons (53) inl'ding Virata, involves the reovery of illgotten "ealth d'ring the reign President aros. he o$&laint against the defendants "as a$ended three ti$es. he last a$ended o$&laint filed "ith the Sandigan#ayan, *no"n as the e+&anded Seond A$ended Co$&laint, states the follo"ing relevant allegations against &etitioner Virata that -efendants en/a$in (o*oy) 1o$'alde2 and 'liette %o$e2 1o$'alde2, in 'nla"f'l onert "ith -efendants 4erdinand E. aros and $elda 1. aros, 'n/'stly enrihed the$selves at the e+&ense of &laintiff and the 4ili&ino &eo&le #y6 78.#.) gave E1A9C: 'nd'e advantage (i) #y effeting the inrease of &o"er rates, and (ii) #y red'ing the eletri franhise ta+ fro$ 5; to <; of gross reei&ts and the tariff d'ty on f'el oil i$&orts #y &'#li 'tilities fro$ <0; to 70;, res'lting in s'#stantial savings for E1A9C: #'t "itho't any signifiant #enefit to the ons'$ers of eletri &o"er. 78.g.) se'red, in a veiled atte$&t to /'stify E1A9C:=s ano$alo's a>'isition of the eletri oo&eratives, the a&&roval #y -efendant 4erdinand E. aros and his a#inet of the soalled ?hree@ear Progra$ for the E+tension of E1A9C:=s Servies to Areas ithin the B0 ilo$eter 1adi's of anila,? "hih re>'ired govern$ent a&ital invest$ent a$o'nting to $i llions of &esos 78.$.) $ani&'lated, "ith the olla#oration of Philg'arantee offiials led #y Chair$an Cesar E. A. Virata, the for$ation of Ereton Doldings, n. "itho't inf'sing additional a&ital solely for the &'r&ose of $a*ing it ass'$e the o#ligation of Eretors nor&orated "ith Philg'arantee in the a$o'nt of P5<,3F,880.7 "ith ins'ffiient Se'ritiesGollaterals /'st to ena#le Eretors n. to a&&ear via#le and to #orro" $ore a&itals. 7. he follo"ing -efendants ated as d'$$ies, no$inees andGor agents #y allo"ing the$selves (i) as instr'$ents in a'$'lating illgotten "ealth thro'gh govern$ent govern$ent &oliies &re/'diial &re/'diial to &laintiff, &laintiff, or (ii) to #e diretors of or&orati or&orations ons #enefiially #enefiially held andGor ontrolled ontrolled #y -efendants 4erdinand E. aros, $elda 1. aros, en/a$in (o*oy) . 1o$'alde2 and 'lliette %o$e2 1a$'alde2 in order (to) oneal and &revent reovery of assets illegally o#tained. Asserting that the foregoing allegations a re vag'e and are not averred "ith s'ffiient definiteness as to ena#le hi$ to effetively &re&are his res&onsive &leading, &etitioner Virata filed a $otion for a #ill of &arti'lars. n a 1esol'tion &ro$'lgated, the Sandigan#ayan &artially granted the said $otion #y re>'iring the 1e&'#li to s'#$it a #ill of &arti'lars onerning the harges against &etitioner Virata stated only in &aragra&h 7 (ating as d'$$y, no$inee andGor agent) and &aragra&h 7F (gross a#'se of a'thority and violation of la"s and the Constit'tion) of the e+&anded Seond A$ended A$ended Co$&laint. Do"ever, as to the other harges, the Sandigan#ayan delared that these a'sations are lear and s&eifi eno'gh to allo" Virata to s'#$it an intelligent res&onsive &leading, hene, the $otion for a #ill of &arti'lars res&eting the foregoing three harges "as denied. n vie" of the Sandigan#ayan=s order of A'g'st 8, 7HH<, the 1e&'#li thro'gh the :ffie of the Soliitor %eneral s'#$itted the #ill of &arti'lars dated :to#er <<, 7HH<, alled as the 9i$ited ill of Parti'lars "hih "as signed #y a ertain 1a$on A. 4eli&e V, "ho "as designated in the #ill of &arti'lars as ?&rivate o'nsel?. ay #a* on Se&te$#er 7, 7HH<, Virata, "ho "as dissatisfied "ith the Sandigan#ayan 1esol'tion of A'g'st 8, 7HH<, filed a &etition for certiorari (%.1. (%.1. No. 70B5<) "ith this Co'rt >'estioning the Sandigan#ayan=s denial of his $otion for a #ill of &arti'lars. he PC%% s'#$itted the #ill of &arti'lars dated Nove$#er 3, 7HH3, "hih "as a&&arently signed #y a ertain 1eynaldo %. 1os, "ho "as na$ed in the #ill of &arti'lars as ?de&'ti2ed &rose'tor? of the PC%%. Virata filed on Nove$#er <3, 7HH3 his o$$ent on the #ill of &arti'lars "ith $otion to dis$iss the e+&anded Seond A$ended Co$&laint. De alleges that #oth the #ills of &arti'lars are pro forma and sho'ld #e stri*en off the reords. Aording to hi$, the #ill of &arti'lars dated Nove$#er 3, 7HH3 is $erely a rehash of the assertions $ade in the e+&anded Seond A$ended Co$&laint. 4'rther$ore, a reading of the 9i$ited ill of Parti'lars sho"s that it alleges ne" i$&'tations "hih are i$$aterial to the harge of #eing a d'$$y, no$inee or agent, and that Virata ated, not as a d'$$y, no$inee or agent of his odefendants as "hat is harged in t he o$&laint, #'t as a govern$ent offier of the 1e&'#li. -issatisfi -issatisfied, ed, Virata Virata filed this instant instant &etition &etition for certiorari 'nder 'nder 1'le 1'le B5 of the 1'les of Co'rt Co'rt to halle hallenge nge the foregoi foregoing ng 1esol' 1esol'tio tion n of the Sandigan#ayan. @es. I##%&$ 7. hether the Sandigan#ayan o$$itted %A- in ad$itting the ill of Parti'lars s'#$itted #y the 1e&''#li. I @es. <. hether the Sol%en and the PC%% are a'thori2ed #y la" to de&'ti2e a o'nsel to file the ill of Parti'lars in #ehalf of the 1e&i#li. No. Ra"'o(a)&$
7. he instant &etition $eritorio's. he r'le is that a o$&laint $'st ontain the 'lti$ate fats onstit'ting &laintiff=s a'se of ation. As long as a a'se of ation e+ists even tho'gh the allegations therein are vag'e, and dis$issal of the ation is not the &ro&er re$edy "hen the &leading is a$#ig'o's #ea'se the defendant $ay as* for $ore &arti'lars.
i*hail %o$e2
Atty. ran>'il Salvador
REMEDIAL LAW REVIEW As s'h, the 1'les of Co'rt &rovide that a &arty $ay $ ove for $ore definite state$ent or for a #ill of &arti'lars of any $atter "hih is not averred "ith s'ffiient definiteness or &arti'larity to ena#le hi$ &ro&erly to &re&are his res&onsive &leading or to &re&are for trial. S'h $otion shall &oint o't the defets o$&lained of and the details desired. Jnder this 1'le, the re$edy availa#le to a &arty "ho see*s larifiation of any iss'e or $atter vag'ely or o#s'rely &leaded #y the other &arty, is to file a $otion, either for a $ore definite state$ent or for a #ill of &arti'lars. An order direting the s'#$ission of s'h state$ent or #ill, f'rther, is &ro&er "here it ena#les the &arty $ovant intelligently to &re&are a res&onsive &leading, or ade>'ately to &re&are for trial. A #ill of &arti'lars is a o$&le$entary &roed'ral do'$ent onsisting of an a$&lifiation or $ore &arti'lari2ed o'tline of a &leading, and #eing in the nat're of a $ore s&eifi allegation of the fats reited in the &leading. t is the offie of the #ill of &arti'lars to infor$ the o&&osite &arty and the o'rt of the &reise nat're and harater of the a'se of ation or defense "hih the &leader has atte$&ted to set forth and there#y to g'ide hi s adversary in his &re&arations for trial, and reasona#ly to &rotet hi$ against s'r&rise at the trial. t gives infor$ation of the s&eifi &ro&osition for "hih the &leader ontends, in res&et to any $aterial and iss'a#le fat in the ase, and it #eo$es a &art of the &leading "hih it s'&&le$ents. t has #een held that a #ill of &arti'lars $'st infor$ the o&&osite &arty of the nat're of the &leader=s a'se of ation or defense, and it $'st f'rnish the re>'ired ite$s of the lai$ "ith reasona#le f'llness and &reision. %enerally, it "ill #e held s'ffiient if it fairly and s'#stantially gives the o&&osite &arty the infor$ation to "hih he is entitled, as re>'ired #y the ter$s of the a&&liation and of the order therefor. t sho'ld #e definite and s&eifi and not ontain general allegations and onl'sions. t sho'ld #e reasona#ly ertain and as s&eifi as the ir'$stanes "ill allo". %'ided #y the foregoing r'les and &rini&les, #oth the #ill of &arti'lars and the 9i$ited ill of Parti'lars are o'hed in s'h general and 'nertain ter$s as "o'ld $a*e it diffi'lt for &etitioner to s'#$it an intelligent res&onsive &leading to the o$&laint and to ade>'ately &re&are for trial. t is a&&arent fro$ the foregoing allegations that the 1e&'#li did not f'rnish Virata the follo"ing $aterial $atters "hih are indis&ensa#le for hi$ to #e &laed in s'h a sit'ation "herein he an &ro&erly #e infor$ed of the harges against hi$6 a) -id Virata, "ho "as only one of the $e$#ers of the oard, at alone in a&&roving the 1esol'tionK ho really a&&roved the 1esol'tion, Virata or the onetary oardK #) hat "ere these o'tstanding loan o#ligations of the three or&orations onernedK ho "ere the reditors and de#tors of these loan o#ligationsK Do" $'h "ere involved in the restr't'ring of the loan o#ligationsK hat $ade the transation a =s"eetheart= or =#ehest= ao$$odationK and ) Do" "as the a>'isition of E1A9C: #y eralo 4o'ndation, n. related to the 1esol'tion restr't'ring the loan o#ligations of the three or&orationsK here are ertain $atters in the foregoing allegations "hih la* in s'#stantial &arti'larity. he follo"ing are the s&eifi $atters "hih the 1e&'#li failed to &rovide, to "it6 a) hat $ade the transation =disadvantageo's= to the govern$entK he allegation that it "as disadvantageo's is a onl'sion of la" that la*s fat'al #asis. Do" did E1A9C: gain the P<0B.< $illionK he 1e&'#li sho'ld have &rovided for $ore s&eifis ho" "as the transation favora#le to E1A9C:K #) hat "ere these foreign o#ligations of E1A9C: "hih "ere ass'$ed #y the govern$entK ho "ere the reditors in these o#ligationsK hen "ere these o#ligations ontratedK Do" $'h "ere involved in the ass'$&tion of foreign o#ligations #y the govern$entK and ) y the &resene of the &rovision of the ontrat >'oted #y the 1e&'#li, "hat $ade the agree$ent a =s"eetheart= dealK he allegation that the agree$ent is a =s"eetheart deal= is a general state$ent that n eeds f'rther a$&lifiation. n li*e $anner, the state$ent of fats fails to &rovide the follo"ing relevant $atters6 a) hat "as this L33.5 $illion &ro&osed #ehest loanK hat "ere its ter$sK ho "as s'&&osed to #e the grantor of this loanK #) hat "ere these short ter$ loansK ho "ere the &arties to these transationsK hen "ere these transatedK Do" "as this L 33.5 $illion #ehest loan related to the short ter$ loansK As learly esta#lished #y the f oregoing dis'ssion, the t"o #ills of &arti'lars filed #y the 1e&'#li failed to &ro&erly a$&lify the harges leveled against Virata #ea'se, not only are they $ere reiteration or re&etition of the allegations set forth in the e+&anded Seond A$ended Co$&laint, #'t, to the large e+tent, they ontain vag'e, i$$aterial and generali2ed assertions "hih are inad$issi#le 'nder o'r &roed'ral r'les. <. he 9i$ited ill of Parti'lars dated :to#er <<, 7HH< signed #y 1a$on 4eli&e V and the ill of Parti'lars dated Nove$#er 3, 7HH3 signed #y 1eynaldo 1os are valid &leadings "hih are #inding '&on the 1e&'#li #ea'se the t"o la"yersignatories are legally de&'ti2ed and a'thori2ed #y the :ffie of the Soliitor %eneral and the Presidential Co$$ission on %ood %overn$ent to sign and file the #ills of &arti'lars onerned. he Ad$inistrative Code of 7HF, "hih virt'ally re&rod'es the &o"ers and f'ntions of the :S% en'$erated in P.-. No. 8F (he 9a" -efining the Po"ers and 4'ntions of the :ffie of the Soliitor %eneral)6 Se. 35. Po"ers and 4'ntions, . . . . t (the :S%) shall have the &o"er to (F) -e&'ti2e legal offiers of govern$ent de&art$ents, #'rea's, agenies and offies to assist the Soliitor %eneral and a&&ear or re&resent the %overn$ent in ases involving their res&etive offies, #ro'ght #efore the o'rts and e+erise s'&ervision and ontrol over s'h legal offiers "ith res&et to s'h ases.M h's, the Soliitor %eneral ated "ithin the legal #o'nds of its a'thority "hen it de&'ti2ed Attorney 4eli&e V to file in #ehalf of the 1e&'#li the #ill of &arti'lars onerning the harges stated in &aragra&h 7 and 7F of the e+&anded Seond A$ended Co$&laint.
i*hail %o$e2
Atty. ran>'il Salvador
