Republic vs. Sandiganbayan (152154) 406 SCRA 190 (2003)

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SUPREM SUPREME E COU COURT RT REPOR REPORTS TS ANNOT NNOTATED  Republic vs. Sandiganbayan Sandiganbayan

G. R.No.152154.Jul y15,2003 . REPUB UBLI C OF THE HE PHI HI LI PPI NES, pe t i t i oner , v s . HONO NORABLE SANDI DI GANB NBAYAN ( SPECI AL FI RST DI VI SI ON) , FERD DI I NAND ND E. MA MARCOS OS ( REPRESENT NTED BY HI S ESTATE/ HEI RS:I MELDA R.MARCOS OS,MARI A I MELDA [ I MEE] MA MARCOS OSMANO NOTOC, FERDI NAND ND R. MARCOS, JR. AND I RENE MARCOSARANETA) AND I MELDA ROMUALDE DEZMA MARCOS,r es po ndent s . *

 Ac t i o ns ;Pl e adi ngsand Pr ac t i c e ;Appe al s ;Ce r t i or ar i ;No r mal l y ,de c i s i o nsoft heSandi g anbay an ar e broughtbef or et heSupre meCourtunderRul e45,notRul e65,butwher et hec asei sundeni abl yi ngrai ned wi t hi mme n s ep ub l i ci nt e r e s t ,pub l i c po l i c ya nd de e p hi s t o r i c alr e p e r c u s s i o ns ,c e r t i o r a r ii sa l l o we d no t wi t hs t andi ngt hee x i s t e n c eand a v ai l ab i l i t yo ft her e me me d yo fa pp e al . —Att heout se t ,wew wo oul dl i ket o s t r e s st hat ,wear et r e at i ngt hi sc a s easa ne x c e pt i o nt ot hege ne r alr ul ego v er ni ngpe t i t i o nsf o rc e r t i o r ar i . Norm ma al l y,deci si onsoft heSandi ganbayanarebroughtbef or et hi sCourtunderRul e45,notRul e65.But wheret hecasei sundeni abl yi ngrai nedwi t hi mmensepubl i ci nt eres t ,publ i cpol i cyanddeep hi st ori cal r e p e r c us s i o ns ,c e r t i o r a r ii sal l o we dno t wi t hs t a ndi ngt hee xi s t e nc eanda v ai l a bi l i t yo ft her e me me dyo fa ppe al . Same ;Sa me me ;Sa me me ;Same ;Pub l i cOffic e r s ;I l l Go t t e nWe a l t h;I na l lt heal l e g e di l l g o t t e nwe a l t hc a s e s  fil e dbyt hePCGG,t heSupr e meCo ur thass e e nfitt os e tas i det e c hni c al i t i e sandf o r mal i t i e st hatme r e l y  s e r v et ode l ayo ri mpe dej udi c i o usr e s o l ut i on . —I nal lt heal l e ge di l l g o t t e nwe al t h _ _ _ _ _ _ __ _ _ _ _ _ _ _   ENBANC.

*

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VOL. 406, JULY 15, 2003  Republic vs. Sandiganbayan Sandiganbayan

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cas esfil ed by t hePCGG,t hi sCourthasseen fitt ose tasi de t ec hni cal i t i esand f orm ma al i t i est hat me r e l ys e r v et od e l a yori mpe dej udi c i o usr e s o l ut i o n.Thi sCo ur tpr e f e r st oha v es uc hc a s e sr e s o l v e do nt he meri t satt heSandi ganbayan.Buts ubst ant i alj ust i cet otheFi l i pi nopeopl eandt oal lpart i esconcer ned, notme mer el egal i sms msorperf ec t i on off or m,shoul d now ber el ent l es sl y and fir ml y pur sued.Al mos tt wo de c a de sha v epa s s e ds i nc et heg o v er nme nti ni t i a t e di t ss e a r c hf o ra ndr e v e r s i o no fs uc hi l l g o t t e nwe al t h. Thedefini t i veres ol ut i on ofsuch caseson t hemeri t si st husl ong overdue.I ft herei sproofofi l l egal a c qui s i t i o n,a c c umul a t i o n,mi s a ppr o p r i a t i o n,f r a udo ri l l i c i tc o nduc t ,l e ti tb eb r o ug hto utno w.Le tt he owners hi poft hesef undsandot herasset sbefinal l ydet erm mi i nedandres ol vedwi t hdi spat ch,f reef rom al l t hede l a yi ngt e c hni c a l i t i e sa nda nno y i ngpr o c e d ur a ls i de t r a c k s . Same me ;Same me ;Summ mmar yJudgme me nt ;Wor dsand Phras e s ; Summ mmar yj udgme me nthasbe e ndes c r i be dasa  j udgme ntwhi c h ac o ur tmay r e nde rbe f or et r i albutaf t e rbo t h par t i e shav epl e ade d . —We hol dt hat re spondentMa Marc ose sf ai l ed t or ai seany genui nei ss ue off acti nt hei rpl eadi ngs.Thus,on mot i on of o fAuma man peti t i onerRepubl i c,sum mm maryj udgmentshoul dt akepl aceasam ma att erofri ght .I nt heearl ycase v s .Es t e nz o ,summ mmaryj udgme mentwasdesc r i bedasaj udgme mentwhi c hac ourtmayre nderbe f or et r i albut af t erbothpart i eshavepl eaded.I ti sorderedbyt hecourtuponappl i cat i on byonepart y,support edby affid ffidavi t s,deposi t i onsorot herdoc ument s,wi t h not i c eupon t headvers epart ywhomayi nt urnfil ean opposi t i onsupport edal sobyaffid ffidavi t s,deposi t i onsorot herdocument s.Thi si saf t ert hecourtsum mm mari l y hearsbot h part i eswi wi t ht hei rres pect i vepro of sandfindst hatt her ei snogenui nei ss uebet weent hem. m.

Summaryj udgmenti ssanct i oned i nt hi sj uri sdi ct i on bySect i on 1,Rul e35oft he1997Rul esofCi vi l Summ mmar yj udgme me ntf orc l ai mant Pr oc edur e:SECTI ON 1. . —A part ys ee ki ng t or ec ov erupon a c l ai m, c o unt e r c l a i m,o rc r o s s c l a i mo rt oo bt a i nade c l a r at o r yr e l i e fma y ,a ta nyt i me ,a f t e rt hepl e adi ngi na ns we r t her et o hasbeen se rv ed,movewi wi t h suppor t i ng affid ffidavi t s,deposi t i ons oradmi mi ss i ons f ora summ mmary  j udgmenti nhi sf avoruponal loranypar tt her e of .Summar yj udgmenti spr operwhent her ei sc l e ar l yno genui nei ss ueast oanymat er i alf acti nt heact i on.Thet heor yofs ummaryj udgmenti st hat ,al t houghan answerma may on i t sf ace appeartot ender i ss uesrequi ri ng t ri al ,i fi ti sdemo monst r ate d by affid ffidavi t s, de po s i t i o nso ra dmi s s i o nst ha tt ho s ei s s u esa r eno tg e nui nebuts ha mo rfic t i t i o us ,t heCo ur ti sj us t i fie di n di spensi ngwi t hthet ri alandrenderi ngsumm mmaryj udgme mentf orpeti t i onerRepubl i c. Same me;Same me; Same me;Same me; A ge nui nei ss uei san i ss ueoff actwhi c h cal l sf ort hepre se nt at i on of  e vi de nc easdi s t i ngui s he df r o m ani s s uewhi c hi sfic t i t i ousandc o nt r i v e d,s e tupi nbadf ai t ho rpat e nt l y l ac k i ngi ns ub s t anc es oasno tt oc o ns t i t ut ea g e nui nei s s uef o rt r i a l —r —r e s p o nde nt s ’de f e ns e so f“ l ac ko f  kno wl e dg ef o rl ac ko fpr i vi t y”or“ ( i nabi l i t yt o)r e c al lbe c aus ei thappe ne dal o ngt i meago ”o r ,o nt hepar to f  Mr s .Mar c o s ,t hatt he“ f undswe r el awf ul l yac qui r e d”ar ef ul l yi ns uffic i e ntt ot e nde rge nui nei s s ue s . —Upo n car ef ulperusalo ft hef or egoi ng,t heCourtfindsthatre spondentM Mr rs .Marc osandt heM Ma arc osc hi l dren i ndubi t abl yf ai l e dt ot e nde rg enui nei s s ue si nt he i ra ns we rt ot h epe t i t i o nf o rf o r f e i t ur e .Ag enui nei s s uei s an i ssue off actwhi ch cal l sf ort hepres ent ati on ofevi denceasdi st i ngui shed f rom an i ssue whi c hi s fict i t i ousand contr i ved,se tup i n bad f ai t h orpatentl yl acki ngi n subst ancesoasnott oconst i t ut ea g enui nei s s uef o rt r i al .Re s po nde nt s ’de f e ns e so f“ l ac ko fkno wl e dg ef o rl ac ko fp r i v i t y ”o r“ ( i nabi l i t yt o ) rec al lbecausei thappenedal ongti meago”or ,ont hepartofMrs .Marcos ,t hat“ t hef undswerel awf ul l y acqui re d”aref ul l yi nsuffi ffic ci entt ot endergenui nei ss ues.RespondentMa Marc oses ’def enseswer easham and evi dent l ycal i bratedtoc omp mpoundandconf uset hei ss ues. Same me;Same me; Same me;Speci ficDeni al s; Thepur poseofre qui ri ngre s pondent st oma makeaspe ci ficdeni al i st omaket he m di s c l o s ef ac t swh whi c hwi l ldi s p r o v et heal l e g at i o nso fp e t i t i o ne ratt het r i al ,t o g e t he rwi t ht he ma t t e r st he yr e l yupo ni ns u pp or to fs u c hde n i a l . —Thepurposeofre qui ri ngres pondent st oma makeaspec i fic de ni ali st oma maket h em di s c l o s ef ac t swhi c hwi l ldi s pr o v et heal l e gat i o nso fpe t i t i o ne ra tt het r i al ,t o ge t h er wi t ht hema matt erst heyrel yupon i nsupportofsuchdeni al .Ourj uri sdi ct i onadherest othi srul etoavoi d andpreventunnec ess aryexpensesandwast eoft i mebyc omp mpel l i ngbot hpart i est ol aythei rcar dsont he o ns ov s .Vi l l amor t a bl e ,t husr e d uc i ngt h ec o nt r o v e r s yt oi t st r uet e r ms ms .Ase x pl a i ne d A i nl ,A l i t i gat i o ni s notagame meoft echni cal i t i esi nwhi chone,moredeepl yschool edandski l l edi nt hesubt l eartofmovem me ent andposi t i on,ent rapsanddest ro ystheot her .I ti sratheracontes ti nwhi c heachcontendi ngpart yf ul l y a ndf a i r l yl a y sb e f o r et hec o ur tt hef a c t si ni s s ueandt he n,b r us hi nga s i deaswh who l l yt r i v i a la ndi nd ec i s i v e al li mperf ect i onsoff orm and t echni cal i t i esofproc edure,asksthatj ust i cebe done upon t he meri t s. La ws ui t s ,unl i k edue l s ,a r eno tt ob ewo nb yar api e r ’ st hr us t . Same me;Same me; Same me;Same me; I l l Got t en Weal t h;For f ei t ur e Pr oc ee di ngs; Ge n e r a l ,s e l f s e r v i ng c l ai m o f i g no r anc eo ft hef ac t sal l e g e di n a pe t i t i o nf o rf o r f e i t ur ei si ns uffic i e ntt or a i s ean i s s ue . —Res pondent s ’ deni al si nt hei r ans werat t he Sandi ganbayan wer e base d on t hei r al l ege dl ac k ofknowl edge or i nf o r ma mat i o ns uffic i e ntt of o r m abe l i e fast ot h et r ut ho ft heal l e gat i o nso ft hepe t i t i o n.I ti st r uet h ato neo f t hemo modesofspeci ficdeni alundert herul esi sadeni alt hroughast atem me entt hatt hedef endanti swi t hout knowl edge ori nf or mat i on suffic ffic i entt of or m a bel i efast ot het rut h oft he mat er i alave rme menti nt he comp mpl ai nt .Thequest i on,however ,i swhet hert heki ndofdeni ali nres pondent s’answerqual i fiesasthe al e sv s .Co ur to fAppe al s s p e c i ficd eni e dc a l l e df o rb yt her ul e s .Wedono tt hi nks o . Mo I n r ,t hi sCo ur tr ul e d t hati fanal l egat i ondi rec t l yandspeci fical l ychargesapart ywi t hhavi ngdone,perf orm me edorc omm mmi t t eda pa r t i c ul a rac twhi c ht h el a t t e rd i dno ti nf a c td o,pe r f o r mo rc o mmi mm t ,ac at e g or i c a la nde x pr e s sd eni a lmus t be made.Her e,despi t ethe ser i ousand spec i fical l egat i onsagai nstt hem, m,t heMa Marc osesr esponded by si mpl ysayi ngt hatt heyhadnoknowl edgeori nf orm ma ati onsuffi ffic ci entt of orm abel i efast ot het ruthofsuc h

Summaryj udgmenti ssanct i oned i nt hi sj uri sdi ct i on bySect i on 1,Rul e35oft he1997Rul esofCi vi l Summ mmar yj udgme me ntf orc l ai mant Pr oc edur e:SECTI ON 1. . —A part ys ee ki ng t or ec ov erupon a c l ai m, c o unt e r c l a i m,o rc r o s s c l a i mo rt oo bt a i nade c l a r at o r yr e l i e fma y ,a ta nyt i me ,a f t e rt hepl e adi ngi na ns we r t her et o hasbeen se rv ed,movewi wi t h suppor t i ng affid ffidavi t s,deposi t i ons oradmi mi ss i ons f ora summ mmary  j udgmenti nhi sf avoruponal loranypar tt her e of .Summar yj udgmenti spr operwhent her ei sc l e ar l yno genui nei ss ueast oanymat er i alf acti nt heact i on.Thet heor yofs ummaryj udgmenti st hat ,al t houghan answerma may on i t sf ace appeartot ender i ss uesrequi ri ng t ri al ,i fi ti sdemo monst r ate d by affid ffidavi t s, de po s i t i o nso ra dmi s s i o nst ha tt ho s ei s s u esa r eno tg e nui nebuts ha mo rfic t i t i o us ,t heCo ur ti sj us t i fie di n di spensi ngwi t hthet ri alandrenderi ngsumm mmaryj udgme mentf orpeti t i onerRepubl i c. Same me;Same me; Same me;Same me; A ge nui nei ss uei san i ss ueoff actwhi c h cal l sf ort hepre se nt at i on of  e vi de nc easdi s t i ngui s he df r o m ani s s uewhi c hi sfic t i t i ousandc o nt r i v e d,s e tupi nbadf ai t ho rpat e nt l y l ac k i ngi ns ub s t anc es oasno tt oc o ns t i t ut ea g e nui nei s s uef o rt r i a l —r —r e s p o nde nt s ’de f e ns e so f“ l ac ko f  kno wl e dg ef o rl ac ko fpr i vi t y”or“ ( i nabi l i t yt o)r e c al lbe c aus ei thappe ne dal o ngt i meago ”o r ,o nt hepar to f  Mr s .Mar c o s ,t hatt he“ f undswe r el awf ul l yac qui r e d”ar ef ul l yi ns uffic i e ntt ot e nde rge nui nei s s ue s . —Upo n car ef ulperusalo ft hef or egoi ng,t heCourtfindsthatre spondentM Mr rs .Marc osandt heM Ma arc osc hi l dren i ndubi t abl yf ai l e dt ot e nde rg enui nei s s ue si nt he i ra ns we rt ot h epe t i t i o nf o rf o r f e i t ur e .Ag enui nei s s uei s an i ssue off actwhi ch cal l sf ort hepres ent ati on ofevi denceasdi st i ngui shed f rom an i ssue whi c hi s fict i t i ousand contr i ved,se tup i n bad f ai t h orpatentl yl acki ngi n subst ancesoasnott oconst i t ut ea g enui nei s s uef o rt r i al .Re s po nde nt s ’de f e ns e so f“ l ac ko fkno wl e dg ef o rl ac ko fp r i v i t y ”o r“ ( i nabi l i t yt o ) rec al lbecausei thappenedal ongti meago”or ,ont hepartofMrs .Marcos ,t hat“ t hef undswerel awf ul l y acqui re d”aref ul l yi nsuffi ffic ci entt ot endergenui nei ss ues.RespondentMa Marc oses ’def enseswer easham and evi dent l ycal i bratedtoc omp mpoundandconf uset hei ss ues. Same me;Same me; Same me;Speci ficDeni al s; Thepur poseofre qui ri ngre s pondent st oma makeaspe ci ficdeni al i st omaket he m di s c l o s ef ac t swh whi c hwi l ldi s p r o v et heal l e g at i o nso fp e t i t i o ne ratt het r i al ,t o g e t he rwi t ht he ma t t e r st he yr e l yupo ni ns u pp or to fs u c hde n i a l . —Thepurposeofre qui ri ngres pondent st oma makeaspec i fic de ni ali st oma maket h em di s c l o s ef ac t swhi c hwi l ldi s pr o v et heal l e gat i o nso fpe t i t i o ne ra tt het r i al ,t o ge t h er wi t ht hema matt erst heyrel yupon i nsupportofsuchdeni al .Ourj uri sdi ct i onadherest othi srul etoavoi d andpreventunnec ess aryexpensesandwast eoft i mebyc omp mpel l i ngbot hpart i est ol aythei rcar dsont he o ns ov s .Vi l l amor t a bl e ,t husr e d uc i ngt h ec o nt r o v e r s yt oi t st r uet e r ms ms .Ase x pl a i ne d A i nl ,A l i t i gat i o ni s notagame meoft echni cal i t i esi nwhi chone,moredeepl yschool edandski l l edi nt hesubt l eartofmovem me ent andposi t i on,ent rapsanddest ro ystheot her .I ti sratheracontes ti nwhi c heachcontendi ngpart yf ul l y a ndf a i r l yl a y sb e f o r et hec o ur tt hef a c t si ni s s ueandt he n,b r us hi nga s i deaswh who l l yt r i v i a la ndi nd ec i s i v e al li mperf ect i onsoff orm and t echni cal i t i esofproc edure,asksthatj ust i cebe done upon t he meri t s. La ws ui t s ,unl i k edue l s ,a r eno tt ob ewo nb yar api e r ’ st hr us t . Same me;Same me; Same me;Same me; I l l Got t en Weal t h;For f ei t ur e Pr oc ee di ngs; Ge n e r a l ,s e l f s e r v i ng c l ai m o f i g no r anc eo ft hef ac t sal l e g e di n a pe t i t i o nf o rf o r f e i t ur ei si ns uffic i e ntt or a i s ean i s s ue . —Res pondent s ’ deni al si nt hei r ans werat t he Sandi ganbayan wer e base d on t hei r al l ege dl ac k ofknowl edge or i nf o r ma mat i o ns uffic i e ntt of o r m abe l i e fast ot h et r ut ho ft heal l e gat i o nso ft hepe t i t i o n.I ti st r uet h ato neo f t hemo modesofspeci ficdeni alundert herul esi sadeni alt hroughast atem me entt hatt hedef endanti swi t hout knowl edge ori nf or mat i on suffic ffic i entt of or m a bel i efast ot het rut h oft he mat er i alave rme menti nt he comp mpl ai nt .Thequest i on,however ,i swhet hert heki ndofdeni ali nres pondent s’answerqual i fiesasthe al e sv s .Co ur to fAppe al s s p e c i ficd eni e dc a l l e df o rb yt her ul e s .Wedono tt hi nks o . Mo I n r ,t hi sCo ur tr ul e d t hati fanal l egat i ondi rec t l yandspeci fical l ychargesapart ywi t hhavi ngdone,perf orm me edorc omm mmi t t eda pa r t i c ul a rac twhi c ht h el a t t e rd i dno ti nf a c td o,pe r f o r mo rc o mmi mm t ,ac at e g or i c a la nde x pr e s sd eni a lmus t be made.Her e,despi t ethe ser i ousand spec i fical l egat i onsagai nstt hem, m,t heMa Marc osesr esponded by si mpl ysayi ngt hatt heyhadnoknowl edgeori nf orm ma ati onsuffi ffic ci entt of orm abel i efast ot het ruthofsuc h

al l e gat i o ns .Suc hag ene r al ,s e l f s e r vi ngc l ai mo fi gno r anc eo ft hef ac t sal l e ge di nt hepe t i t i o nf o rf o r f e i t ur e wasi nsuffici entt orai seani ssue.RespondentMarcos ess houl dhaveposi t i vel yst atedhow i twast hatt hey we r es u pp os e d l yi g no r a nto ft hef a c t sa l l e g e d. Same me; Same me ;Same me; Same me ;Neg at i vePr e gnant ;Wor dsand Phr ase s;A ne gat i vepre gnanti sa deni al  pr e gnantwi t ht headmi s s i ono ft hes ubs t ant i alf ac t si nt hepl e adi ngr e s po nde dt owhi c har eno ts quar e l y de n i e d,i ne ffe c tanadmi s s i o no ft hea v e r m me e nt si twasdi r e c t e dat ;Ane g a t i v ep r e g nanti saf o r mo fne g a t i v e  e x pr e s s i on whi c hc ar r i e swi t hi tan affir mat i o no ratl e as tan i mpl i c at i o no fs omeki nd f av o r abl et ot he adv e r s epar t y . —Evi dent l y,t hi spart i cul ardeni alhadt heearma markofwhati scal l edi nt hel aw onpl eadi ngs i v epr e g nant ,t asanegat hati s,a deni alpregnantwi wi t ht he admi ss i on oft he subst ant i alf act si nt he pl eadi ngrespondedt owh whi c harenotsquar el ydeni ed.I twasi neffec tanadmi ss i onoft heaverm me ent si twas di r e c t e da t .St a t e do t he r wi s e ,ane g at i v epr e g na nti saf o r mo fne g at i v ee xpr e s s i o nwhi c hc ar r i e swi t hi ta n affir ffirma mati onoratl eastani mpl i cat i onofsom me eki ndf avorabl et ot headvers epart y.I ti sadeni alpregnant wi t ha na dmi s s i o no ft hes ub s t a nt i a lf a c t sa l l e g e di nt hepl e adi ng .Whe r eaf a c ti sa l l e g e dwi t hq ua l i f y i ng orm mo odi f yi ngl anguageandt hew wo ordsoft heal l egat i onassoqual i fiedorm mo odi fiedarel i t eral l ydeni ed,i t ha sbe e nhe l dt ha tt heq ua l i f y i ngc i r c ums t a nc e sa l o near ed e ni e dwhi l et hef a c ti t s e l fi sa dmi t t e d. Same me ;Same me ;Same me ;Same me ;Same me ;When mat t e r sr e gar di ng whi c hr e s pondent sc l ai m t o have no  kno wl e dg eo ri nf o r mat i on s uffic i e ntt of o r m abe l i e far epl ai nl yand ne c e s s ar i l ywi t hi nt he i rkno wl e dge , t he i ral l e g e di g no r a nc eo rl ac ko fi nf o r ma mat i o n wi l ln o tb ec o n s i de r e das p e c i ficde n i al —a p r o f e s s i o no f i gnor anceabouta f actwhi c hi spat ent l y and nec es sar i l y wi t hi nt hepl eader ’ sknowl e dgeormeansof  kno wi ngi sasi ne ffe c t i v easnode ni alatal l ;Thef o r mo fde ni albas e do ni gno r anc eo rl ac ko fi nf o r mat i o n mus tb ea v ai l e do fwi t hs i nc e r i t yand i ng o o df a i t h,and c e r t a i nl yno tf o rt hepur p o s eo fc o nf us i ngt he adv e r s ep ar t yast owh whatal l e g a t i o nso ft hepe t i t i o nar er e a l l ybe i ngc h al l e n ge d ,no rs ho ul di tb ema madef o r t he pur pose ofdel ay . —When mat t er sre gar di ng whi c hr es pondent scl ai m t o haveno kno wl edgeor i nf orma mati on suffic ffici entt of orm abel i efarepl ai nl yandneces sari l ywi t hi nt hei rknowl edge,t hei ral l eged i gnor anc e orl ack ofi nf orm ma at i on wi l lnotbe co nsi dered a spec i ficdeni al .An unexpl ai ned deni alof i nf o r ma ma t i o nwi t hi nt hec o nt r o lo ft hepl e ade r ,o ri sr e a di l ya c c e s s i b l et ohi m,i se v as i v ea ndi si ns uffic i e nt wi t h t oco nst i t ut ean effec t i vedeni al .Thef orm ofdeni aladoptedby re spondent smu mustbe avai l ed of  s i nc e r i t yand i n go o df ai t h,and c e r t ai nl yno tf ort hepur po s eo fc o nf us i ngt headv e r s epar t yast owhat al l e g at i o nso ft hepe t i t i o nar er e a l l ybe i ngc hal l e ng e d;no rs ho ul di tbema madef o rt hep ur p os eo fde l a y . I nt he i nst antcase ,t heMarc osesdi d notonl ypres entunsubst ant i at ed asse rt i onsbuti nt rut h at t emp mpt ed t o mi sl eadanddecei vethi sCourtbypres ent i ngan obvi ousl ycont ri veddef ense.Si mpl yput ,aprof essi onof i gnor anc eaboutaf actwhi c hi spat ent l y and nec ess ari l ywi t hi nt hepl eader’ sknowl edge orme meansof ne ffe c t i v easnode ni alatal l knowi ngi sasi .Re s po nd ent s ’i ne ffe c t i v ede ni a lt husf a i l e dt opr o p er l yt e nde r an i ssueandt heaverm me ent scontai nedi nt hepet i t i on f orf orf ei t ureweredeem me edj udi ci al l yadmi t t edby t hem. Same ;Sa me me ;Sa me me ;Pr e Tr i alBr i e f s ;I ti sunq ue s t i o nab l y wi t hi nt hec o u r t ’ sp o we we rt or e q ui r et he  par t i e st os ubmi tt he i rpr e t r i albr i e f sand t os t at et henumbe ro fwi t ne s s e si nt e nde dt obec al l e dt ot he  s t and,and a br i e fs ummar yo ft hee vi de nc ee ac ho ft he mi se x pe c t e dt ogi v easwe l last odi s c l o s et he numb e ro fdo c u me me n t st ob esub mi mi t t e dwi wi t hade s c r i p t i o no ft hen at ur eo fe a c h . —I ti sunquest i onabl ywi t hi n t he c ourt ’ spowert o re qui r et he part i est o submi tt hei rpret ri albri ef sand t o st at et he numberof wi t nessesi nt endedt obecal l edt ot hest and,andabri efsum mm maryoft heevi denceeachoft hem i sexpect ed t ogi veaswel last odi sc l oset henumberofdocument st obesubmi t t edwi t hadesc ri pti onoft henatureof each.Thet enorandcharact eroft het est i monyoft hewi t nessesandoft hedocument st obededucedatt he t ri alt husma madeknown,i naddi t i ont othepart i cul ari ssuesoff actandl aw,i tbecom me esapparenti fgenui ne i s s u esar ebe i ngputf o r wa r dne c e s s i t a t i ngt heho l di ngo fat r i a l .Li k e wi wi s e ,t hepa r t i e sar eo bl i g e dno to nl y

t omakeaf ormali dent i ficat i onandspeci ficat i onoft hei ssuesandt hei rproof s,andt oputt hesematt ersi n wri t i ngandsubmi tt hem t ot hecourtwi t hi nt hespeci fiedperi odf ort hepromptdi sposi t i onoft heact i on. Same;Same; Same;Theabse nceofoppos i ngaffidavi t s,depos i t i onsandadmi s si onst ocont r adi ctt he  s wo r n de c l ar at i o nsi n a mo t i o nf ors ummar yj udgme nto nl y de mons t r at e st hatt heav e r me nt st os uc h o ppo s i t i o n ar en o tg e n ui nea ndt he r e f o r eu nwo r t h yo fb e l i e f . —Theoppos i t i onfil edbyMr s.Marc ost ot he mot i onf ors ummaryj udgmentdat edMar c h 21,2000ofpet i t i onerRepubl i cwasmer el yadopt edbyt he Marc osc hi l drenast hei rown opposi t i ont ot hesai dmot i on.However ,i twasagai n notacc ompani edby affidavi t s,deposi t i ons oradmi ss i ons as r equi r ed by Sec t i on 3,Rul e 35 oft he 1997 Rul eson Ci vi l Proc edure:xxxTheadvers epart ymayserveopposi ngaffidavi t s,deposi t i ons,oradmi ssi onsatl eastt hree ( 3)daysbef oreheari ng.Af t erheari ng,t hej udgments oughts hal lberenderedf ort hwi t hi ft hepl eadi ngs, support i ngaffidavi t s,deposi t i ons,andadmi ss i onsonfil e,show t hat,exc eptast ot heamounto fdamages, t herei snogenui nei ssueast oanymater i alf actandt hatt hemovi ngpart yi sent i t l edt oaj udgmentasa mat t erofl aw.Theabsenceofo pposi ngaffidavi t s,deposi t i onsand admi ss i onstocont r adi ctt hesworn decl arat i onsi nt heRepubl i c’ smot i on onl y demonst r at ed t hatt he averment sofs uc h opposi t i on wer e  g nui ne no te   a ndt he r e f o r eunwo r t h yo fb el i e f . Same;Same; Same;Mer edeni al s,i funaccompani edbyanyf actwhi c hwi l lbeadmi ss i bl ei ne vi dence a tahe a r i ng ,a r eno ts u ffic i e n tt or a i s eg e nui nei s s ue so ff a c ta ndwi l lno tde f e a tamo t i o nf o rs u mmar y  j udgme nt . —I nsum,mer edeni al s,i funacc ompani edbyanyf actwhi c hwi l lbeadmi ss i bl ei nevi denceata hear i ng,arenots uffic i entt or ai segenui nei ss ues off actand wi l lnotdef eata mot i on f orsummary  j udgment .A s ummar yj udgmenti sonegr ant eduponmo t i onofapar t yf orane xpedi t i ouss e t t l ementof t he cas e,i tappeari ng f r om t he pl eadi ngs,deposi t i ons,admi ss i onsand affidavi t sthatt her e areno i mport antquest i onsori ss uesoff actposedand,t here f or e,t hemovanti sent i t l ed t oaj udgmentasa mat t erofl aw.A mot i onf ors ummaryj udgmenti spremi se dont heass umpt i ont hatt hei ss uespr es ente d ne e dno tb et r i e dei t he rb e c a us et he s ea r epa t e nt l yde v o i dofs ub s t a nc eo rt ha tt he r ei sn oge nui nei s s u eas t oan yp er t i ne ntf a c t .I ti same t ho ds a nc t i o ne db yt heRul e so fCo ur tf o rt hepr o mp td i s p os i t i o no fac i v i l act i onwheret hereexi st snoseri ousc ont ro vers y.Summaryj udgmenti saproceduraldevi cef ort heprompt di s p os i t i o no fa c t i o nsi nwhi c ht hepl e adi ng sr a i s eo nl yal e g ali s s u e,no tag e nui nei s s u ea st oa nyma t e r i a l f act .Thet heor yofsummaryj udgmenti st hat ,al t houghananswermayoni t sf aceappeart ot enderi ss ues r e q ui r i ngt r i al ,i fi ti se s t abl i s he db yaffida vi t s ,de po s i t i o nso ra dmi s s i o nst hatt ho s ei s s ue sar eno tg enui ne butfict i t i ous,t heCourti sj ust i fiedi n di spensi ngwi t ht het r i aland re nderi ngsummaryj udgmentf or pe t i t i o ne r . Same;Same; Same;Di l at oryTact i cs ;Ti meandagai n,t heSupre meCourthasencount er edcase sl i ke t hi swhi c har ee i t he ro nl yhal f he ar t e dl yde f e nde do r ,i ft hes e mbl anc eo fade f e ns ei si nt e r p o s e data l l ,i ti s o nl yt ode l a ydi s p o s i t i o nandg ai nt i me . —Ti meandagai n,t hi sCourthasencount er edcas esl i kethi swhi c h ar ee i t he ro nl yhal f he ar t e dl yde f e nde do r ,i ft hes e mbl anc eo fade f e ns ei si nt e r po s e data l l ,i ti so nl yt o de l a ydi s p o s i t i o na ndg ai nt i me .I ti sc e r t a i nl yno ti nt hei nt e r e s to fj us t i c et oa l l o wr e s p o nde ntMa r c o s e s t oav ai lo ft heappe l l a t er e me di e sac c o r d e db yt heRul e so fCo ur tt ol i t i g ant si ng o odf a i t h,t ot h epr e j udi c e of t he Republ i c and ul t i mat el y of t he Fi l i pi no peo pl e. Fr om t he be gi nni ng, a c andi d f demonst r at i ono   r espondent s’ goodf ai t hshoul dhavebeenmadet ot hecourtbel ow.Wi t houtt hedecepti ve reasoni ngandargument ati on,t hi sprot ract edl i t i gati oncoul dhaveendedal ongti meago. Same; Same ;Same; Same ;Si nce 1991,whe nt he pet i t i on f orf or f e i t urewas fir s tfil e d,up t ot he  pr e s e nt ,al lr e s po nde nt shav eo ffe r e dar ef o x yr e s pons e sl i ke“ l ac kofs uffic i e ntkno wl e dg eo rl ac kofpr i vi t y ” o r“ t he yc a nno tr e c a l lb e c aus ei thappe ne dal o ngt i mea go ”o r ,ast oMr s .Ma r c o s ,“ t hef undswe r el a wf ul l y ac q ui r e d. —Si nce1991,whent hepeti t i onf orf orf ei t urewasfirs tfil ed,upt othepresent ,al lres pondent s haveofferedaref oxyres ponsesl i ke“ l ackofsuffici entknowl edgeorl ackofpri vi t y”or“ t heycannotr ecal l becausei thappened al ongt i meago”or ,astoMrs .Marc os,“ t hef undswer el awf ul l yacqui re d. ”But ,

wheneveri tsui t st hem,t heyal socl ai m owners hi pof90% oft hef undsandal l eget hatonl y10% bel ongst o t heMarcosest ate.I thasbeenani ncr edi bl echaradef rom begi nni ngt oend. Same; Same ;Same; Nofixe dr eg l e me nt aryper i odi spr ovi de dbyt heRul e sf ormovi ngf ors ummary  j udgme nt ;Si nc enol o c alj ur i s pr ude nc eo raut ho r i t at i v ewor khast o uc he dupo nt hei s s ueast owhe nt ofil ea mo t i o nf o rs ummar yj udg me n t ,a ne x a mi na t i o no ff o r e i g nl a wsa ndj ur i s p r u de n c e ,p ar t i c u l ar l yt ho s eo ft he Uni t e dSt at e swhe r ema nyo fo url a wsa ndr u l e swe r ec o p i e d ,i si no r de r . —Undert herul e,t hepl ai nt i ffcan . e . , movef orsummaryj udgment“ atanyt i meaf t ert hepl eadi ngi nanswert her et oi (   i nanswert ot hecl ai m, count erc l ai m orc ros scl ai m)hasbeenserved. ”Nofixedregl ement aryperi odi sprovi dedbytheRul es.How el sedoesoneconst ruethephrase“ anyti meaf t ert heanswerhasbeenserved?”Thi si ssuei sact ual l yone offirs ti mpres si on.Nol ocalj uri sprudenceoraut hori t ati vewor khastouchedupont hi smatt er .Thi sbei ng so,anexami nati onoff orei gnl awsandj uri sprudence,part i cul arl ythoseoft heUni t edSt ateswheremany o fo url a wsa ndr ul e swe r ec o p i e d,i si no r d e r . Same ;Sa me ;Sa me ;Wo r d sandPhr a s e s ;Ag r e e i ngt opr o c e e dt ot r i aldur i ngt hep r e t r i a lc o nf e r e n c e , doe snotamountt oawai ve roft her i ghtt osummar yj udgment ;Thephras e“ anyt i meaf t ert hepl e adi ngi n a ns we rt he r e t ohasb e e ns e r v e d ”i nSe c t i o n1 ,Rul e3 5o ft heRul e so fCi v i lPr o c e d ur eme a ns“ a ta nys t a geo f t hel i t i gat i o n. ” —I nt hecaseatbar ,peti t i onermovedf orsummaryj udgmentaf t erpret ri alandbef orei t s sc hedul eddat ef orpresentat i onofevi dence.RespondentMarcos esarguet hat,byagreei ngtoproceedto t ri alduri ngt hepret ri alc onf erence,peti t i oner“ wai ved”i t sri ghtt osummaryj udgment .Thi sargument mustf ai li nt hel i ghto ft he New Yor k SupremeCourtrul i ngwhi c h weappl ybyanal ogytot hi scas e.  E ke r I nc ,t hedef endantopposedt hemot i onf ors ummaryj udgmentonagro undsi mi l art ot hatr ai se dby t heMarcos es,t hati s,“ t hatpl ai nt i ffhadwai vedherr i ghtt osummaryj udgment ”byheractofproc eedi ng t ot ri al .I f ,ascorr ect l yrul edbytheNew Yorkcourt ,pl ai nt i ffwasal l owedt omovef ors ummaryj udgment t e r evenaf   t ri alandsubmi ssi onoft hecasef orres ol ut i on,moresoshoul dwepermi ti ti nt hepres entc ase b e f o r et wher e pet i t i onermov ed f ors ummar yj udgment ri al .Theref ore,t he phrase“ anyti me af t ert he pl eadi ngi nanswert her et ohasbeenser ved”i nSec t i on1,Rul e35ofourRul esofCi vi lProc eduremeans “ a tan ys t ag eo ft hel i t i g at i o n. ”Whe ne v e ri tb e c o me se vi de nta ta nys t a geoft hel i t i g at i o nt ha tnot r i a bl e i ssueexi st s,ort hatt hedef ensesrai sedbyt hedef endant ( s)aresham orf ri vol ous,pl ai nt i ffmaymovef or s ummary j udgment .A c ont r ary i nt er pre t at i on woul d go agai nstt he ver y obj ec t i ve oft he Rul e on SummaryJudgmentwhi c hi st o“ weedouts ham c l ai mso rdef ensest her ebyavoi di ngt heexpenseandl os s o ft i mei nv ol v edi nat r i al . ” Same ;Sa me ;Sa me ;Di l a t o r yTac t i c s ;I nc a s e swi t hp o l i t i c a lunde r t o ne sl i k et heo neatb ar ,adv e r s e  par t i e swi l lof t e n doal mos tany t hi ngt ode l ayt hepr o c e e di ngsi nt heho pet hataf ut ur eadmi ni s t r at i o n  s y mpat he t i ct ot he m mi ghtbeabl et oi nflue nc et heo ut c o meoft hec as ei nt he i rf av or . —I nc aseswi t h pol i t i calundert onesl i ke t he one atbar,advers e part i eswi l lof t en do al mostanyt hi ng t o del ay t he proc eedi ngsi nt hehopethataf ut ureadmi ni st r at i onsympat het i ct ot hem mi ghtbeabl et oi nfluencet he o ut c o meo ft hec as ei nt he i rf a v o r .Thi si sr a nki nj us t i c ewec anno tt o l e r a t e . Same ;Sa me ;Sa me ;Thef a c tt hatt heRe p ub l i ca g r e e dt opr o c e e dt ot r i a ldi dno ti nan ywa ypr e v e n ti t  f r o m mo vi ng f o rs ummar yj udgme nt ,asi nde e d no g e nui nei s s ue o ff ac twas e v e rv al i dl yr ai s e d by r e s ponde ntMarc os e s . —The l aw l ooks wi t h di sf avoron l ong,prot r act ed and expensi ve l i t i gati on and enco ur agest hespeedyandpromptdi sposi t i onofcase s.Thati swhyt hel aw andt herul esprovi def ora numberofdevi ce st oensuret hespeedydi sposi t i onofcas es.Summaryj udgmenti soneoft hem.Fai t hf ul t her ef or et ot hespi ri toft hel aw onsummaryj udgmentwhi c hseekst oavoi dunnec ess aryexpenseandl oss oft i mei nat ri al ,weher ebyrul ethatpet i t i onerRepubl i cco ul dval i dl ymovef orsummaryj udgmentany t i meaf t e rt her e s p o nde nt s ’a ns we rwa sfil e do r ,f o rt ha tma t t e r ,a ta nys ub s e que nts t a geo ft hel i t i g at i o n. Thef actt hatpet i t i oneragreedt oproc eedt ot ri aldi dnoti nanywaypreventi tf rom movi ngf ors ummary  j udgment ,asi nde ednogenui nei s s ueoff ac twase verval i dl yr ai s edbyr es pondentMar c os es .

Same ;Sa me ;Sa me ;Lac he s ;Es t o p pe l ;Wo r dsa ndPhr a s e s ; Es t o p pe lb yl a c he si st hef a i l ur eo rne g l e c t  f o ranunr e as o nabl eo rune x pl ai ne dl e ngt ho ft i met odot hatwhi c h,bye x e r c i s i ngduedi l i g e nc e ,c o ul do r  s ho ul d havebe e n do nee ar l i e r ,war r ant i ng a pr e s umpt i o nt hatt hepe r s o n hasabando ne d hi sr i ghto r de c l ai ne dt oas s e r ti t . —Res pondent sf ur t heral l eget hatt hemot i onf ors ummaryj udgmentwasbase don re spondent s’ answerandot herdocument st hathadl ongbeeni nt herec or dsoft hecase.Thus,bythet i me t hemot i on wasfil edon Marc h 10,2000,es t oppelbyl acheshad al r eady s eti n agai nstpet i t i oner .We di s a gr e e .Es t o ppe lb yl a c he si st hef a i l ur eo rne g l e c tf o ra nunr e a s o na bl eo rune x pl a i ne dl e ng t ho ft i met o do t hat whi c h,by ex er c i si ng due di l i gence,c oul d or shoul d have been done ear l i er ,warr ant i ng a presumpti on t hatt heperson hasabandoned hi sri ghtordecl i ned t oasserti t .I n effect ,t heref ore,t he pri nci pl eofl achesi soneofes t oppelbecause“ i tpreventspeopl ewhohavesl epton t hei rl i ght sf rom pr e j udi c i ngt her i g ht so ft hi r dp ar t i e swhoha v epl a c e dr e l i a nc eo nt hei na c t i o no ft heor i g i na lp ar t i e sand t he i rs uc c e ss o r si ni nt e r e s t . ” Same ;Same ;Same ;Same ;Same ;The doc t r i ne ofes t oppe l or l ac hes doe s not appl y when t he  go v e r nme nts ue sasa s o v e r e i gn o ras s e r t sgo v e r nme nt alr i ght s . —Butev en as s umi ng f ort he s akeof argumentt hatl acheshad al re ady se ti n,t hedoc t ri neofes t oppelorl achesdoesnotappl y when t he gover nments uesasasov er ei gn orasser t sgovernment alri ght s.Norc an est oppelval i dat ean actt hat c o nt r a v e ne sl a wo rpub l i cpo l i c y . Same; Same ;Same; Same ;I tmus tbee mphasi ze dt hatl achesi snotame r eque s t i onoft i mebuti s  pr i nc i pal l yaque s t i o no ft hei ne qui t yo runf ai r ne s so fpe r mi t t i ngar i ghto rc l ai mt obee nf o r c e do ras s e r t e d . —Asafinalpoi nt ,i tmustbeemphasi zedt hatl achesi snotamer equest i onoft i mebuti spri nci pal l ya quest i on oft hei nequi t yorunf ai rnessofpermi t t i ngari ghtorcl ai mt obeenf orc edorasser t ed.Equi t y demands t hatpet i t i onerRepubl i cshoul d notbe barr ed f r om pur sui ng t he peopl e’ sc aseagai nstt he Mar c os es . Same ;Pub l i c Offic e r s ;I l l Go t t e n We a l t h;Fo r f e i t ur ePr o c e e di ng s ;Pr e s u mp t i o ns ;The l a w r a i s e st he  pr i maf ac i epr e s umpt i o nt hatapr o pe r t yi sunl awf ul l yac qui r e d,he nc es ubj e c tt of or f e i t ur e ,i fi t samo unto r v a l uei smani f e s t l ydi s p r o p o r t i o na t et ot heo ffic i als a l a r yando t he rl a wf uli nc o meo ft hepub l i co ffic e rwho ownsi t  p i maf ac i e . —Thel aw r ai se st h er   pres umpti ont hatapropert yi sunl awf ul l yacqui red,hencesubj ect t of o r f e i t ur e ,i fi t samo unto rv a l uei sma ni f e s t l ydi s p r o po r t i o na t et ot heoffic i a ls a l ar yando t he rl a wf ul i nc omeoft hepubl i coffic erwhoownsi t .Hence,Sec t i ons2and6ofRA 1379pro vi de:xxxxxxSec t i on  F l i ngo fpe t i t i o n. 2 .i —Whenev eranypubl i coffic ero rempl oy eehasac qui r edduri ng hi si ncumbencyan amountorpr opert ywhi c hi smani f est l youtofproport i ont ohi ssal aryassuc hpubl i coffice rorempl oyee andt ohi sot herl awf uli ncomeandt hei ncomef rom l egi t i matel yacqui redpropert y,sai dpropert yshal lbe  p i maf ac i e  J nt pr es ume dr   t ohavebeenunl awf ul l yacqui red.xxxxxxSec. 6.udgme —I ft heres pondenti s una bl et os h o wt ot h es at i s f a c t i o no ft hec o ur tt ha theha sl a wf ul l yac q ui r e dt hepr o p er t yi nq ue s t i o n,t he n t hec o ur ts ha l lde c l a r es uc hp r o pe r t yi nq ue s t i o n,f o r f e i t e di nf a v oro ft heSt a t e ,a ndb yv i r t ueo fs uc h  P o vi de d,  j udgmentt hepr oper t yaf or es ai ds hal lbec omet hepr oper t yoft heSt at e.r   Thatnoj udgments hal l be r enderedwi t hi n si xmont hsbef oreany gener alel ec t i on orwi t hi nt hre emont hsbef or eany speci al el ect i on.The Courtmay,i n addi t i on,re f erthi scas et ot he co rr espondi ng Exec ut i veDepart mentf or admi ni s t r a t i v eo rc r i mi nalac t i o n,o rb o t h. Same;Same; Same;Same; Requi si t esf orForf ei t ureor Sei zureoft he Swi ssDe posi t s . —Fr om t he abovequot ed pro vi si onsoft hel aw,t hef ol l owi ngf act smustbe est abl i shed i n ordert hatf orf ei t ureor sei zureoft heSwi ssdeposi t smaybeeffec t ed:( 1)o wner shi pbyt hepubl i coffice rofmoneyorpr opert y acqui re dduri nghi si ncumbency ,whet heri tbei nhi snameorot herwi se,and( 2)t heext entt owhi c ht he i . e . , amountoft hatmoneyorpropert yexc eeds,   i sg r os s l ydi s pr o po r t i o nat et o ,t hel e gi t i mat ei nc o meo ft he publ i cofficer .

Same; Same ;Same; Same ;Admi s s i ons;Pl e adi ngsandPr act i c e ; Judi c i aladmi s s i onmaybemade( a) i nt hepl e a di ng sfil e db yt hepar t i e s ,( b )i nt hec o ur s eo ft het r i ale i t he rb yv e r b alo rwr i t t e nmani f e s t at i o ns o rs t i pul at i o ns ,o r( c )i no t he rs t ag e sofj udi c i alpr o c e e di ngs ,asi nt hepr e t r i alo ft hec as e . —Pre sc i ndi ng c i al f r o mt hea f o r e s a i da dmi s s i o ns ,Se c t i o n4 ,Rul e1 29oft heRul e so fCo ur tp r o vi de st ha t :Se c t i o n J 4 .udi admi s s i ons —An admi ss i on,ver balo rwr i t t en,madebyapart yi nt hecours eoft heproc eedi ngsi nt he samecasedoesnotr equi r epr oof .Theadmi ss i onmaybecont r adi c t edonl ybyshowi ngt hati twasmade t hro ughpal pabl emi st akeort hatnosuchadmi ss i onwasmade.I ti sse t t l edt hatj udi ci aladmi ss i onsmay b ema de :( a )i nt hepl e adi ng sfil e db yt hepar t i e s ;( b )i nt hec o ur s eo ft het r i a le i t he rb yv e r b alo rwr i t t e n mani f e s t a t i o nsors t i pul at i o ns ;o r( c )i no t h ers t a g eso fj udi c i alpr o c e e di ng s ,a si nt hepr e t r i alo ft hec a s e. Thus,f act spl eadedi nt hepet i t i onandanswer ,asi nt hecaseatbar ,aredeemedadmi ssi onsofpeti t i oner andres pondent s,res pect i vel y,whoarenotpermi t t edt ocont radi ctt hem orsubsequent l ytakeaposi t i on contr aryt oori nconsi st entwi t hsuchadmi ssi ons. Same;Same; Same;Same; Same;Same; I ti snotf ort heRepubl i ct o es t abl i sh t heMarc os es ’ot her l a wf uli nc o meo ri nc o mef r o ml e g i t i ma t e l yac q u i r e dp r o pe r t yf o rt hepr e s u mp t i o nt ha tt hepr o p e r t ys o ug ht t obef o r f e i t e di sunl awf ul l yac q ui r e dt oa ppl ybe c a us e ,asb e t we e nt heRe p ub l i ca ndt heMar c o s e s ,t hel at t e r ar ei nab e t t e rp o s i t i o nt okno wi ft he r ear es uc ho t he rs o u r c e so fl a wf uli nc o me . —Res pondent sar guet hat i maf ac i e pe t i t i o ne rwa sno ta b l et oe s t a bl i s h p ar   c a s ef o rt hef o r f e i t ur eo ft heSwi s sf undss i nc ei tf ai l e dt o provet heessenti alel ement sunderSect i on3,paragraphs( c) ,( d)and( e)ofRA 1379.Ast heActi sapenal st atute,i t spro vi si onsaremandat oryand shoul dt husbeconst rued st ri ct l yagai nstt hepet i t i onerand l i b er a l l yi nf a v o ro fr e s po nd entMa r c o s e s .Weho l dt ha ti twa sno tf o rpe t i t i o ne rt oe s t a bl i s ht heMa r c o s e s ’ ot herl awf uli ncomeori ncomef rom l egi t i matel yacqui redpropert yf ort hepres umpti ont oappl ybecause, asbet ween peti t i onerandres pondent s,t hel att erwerei n abett erposi t i on t oknow i ft hereweresuch ot hers ourc esofl awf uli ncome.Andi fi ndeedt herewassuc hot herl awf uli ncome,res pondent ss houl dhave speci fical l yst atedt hesamei nt hei ranswer .I nsof araspet i t i onerRepubl i cwasconcerned,i twasenough t ospeci f yt heknownl awf uli ncomeofres pondent s. Same;Same; Same;Same; Same;St at ementofAss e t sandLi abi l i t i es( SAL) ;Thef ai l ureoft heMarc os c o upl et ofil et he i rSALwasi ni t s e l fav i o l at i o no fl a w andt oal l o wt he mt os uc c e s s f ul l yas s ai lt heRe p ub l i c  f o rno tpr e s e nt i ngt he i rSAL wo ul dr e war dt he mf o rt he i rvi o l at i on o ft hel aw. —Sec t i on9oft hePCGG  p i maf ac i e Rul esandRegul ati onsprovi dest hat,i ndet ermi ni n gr   e vi de nc eo fi l l g o t t e nwe al t h,t heval ueof t heacc umul at edasse t s,propert i esandot hermat eri alposs ess i onsoft hosecover edbyExec ut i veOr der  k wnl awf uli nc o me Nos.1and2mustbeputofproport i ont ot h e no ofsuchpers ons.Ther espondentMarc os co upl edi d notfil eany St at ementofAss et sandLi abi l i t i es( SAL)f ro m whi c ht hei rnetwort hc oul dbe de t e r mi ne d.The i rf a i l ur et ofil et h e i rSALwa si ni t s e l favi o l a t i o no fl a wa ndt oal l o wt he mt os uc c e s s f ul l y assai lt heRepubl i cf ornotpresent i ngthei rSALwoul drewardt hem f ort hei rvi ol ati onoft hel aw. Same; Same ;Same; Same ;Same; Compromi s eAgre e me nt s; Re s ponde nt s’wi l l i ngne s st o agre et o an a mi c a b l es e t t l e me n twi t ht heRe p ub l i co n l yaffir me dt he i ro wne r s h i po ft heSwi s sde p o s i t sf o rt hes i mpl e r e as o nt hatnope r s o nwo ul dac q ui e s c et oanyc o nc e s s i o no v e rs uc hhug edo l l arde p o s i t si fhedi dno ti nf ac t ownt hem. —Thest i pul ati onss etf ort hi nt heGeneralandSuppl ement alAgreement sundeni abl yi ndi cat ed t hemani f esti nt entofr espondent st oent eri nt oacompromi sewi t h peti t i oner .Corol l ari l y,res pondent s’ wi l l i ngnesst oagreet oan ami cabl eset t l ementwi t ht heRepubl i conl yaffirmedt hei rowner shi p oft he Swi ssdeposi t sf ort hesi mpl ereasont hatnopers on woul dacqui esc etoany co nce ss i on overs uc h huge do l l a rde po s i t si fhedi dno ti nf a c to wnt he m. Same;Same; Same;Same; Same;Same; Ther e asonsre l i eduponbyt heCourti ndec l ari ngt henul l i t y o ft hea gr e e me nt se n t e r e di nt obyt heMar c o s e swi t ht heRe p ub l i cne v e ri nt hel e a s tb i te v e nt o uc h e do nt he v e r ac i t yandt r ut hf ul ne s so ft heMar c o s e s ’admi s s i o nwi t hr e s p e c tt ot he i ro wne r s h i po ft heSwi s sf unds . — Res pondent smakemuc hc api t aloft hepro nouncementbyt hi sCourtt hatt heGener alandSuppl ement al

 Agr eement swer enul landvoi d.The yi ns i s tt hatno t hi ngi nt hos eagr eement sc oul dt husbeadmi t t edi n evi denc eagai nstt hem bec auset heyst oodont hesamegroundasan acc ept edofferwhi c h,underSect i on 27,Rul e130oft he1997Rul esofCi vi lProc edure,pro vi dest hat“ i nci vi lcases,anofferofcompromi sei s notanadmi ssi onofanyl i abi l i t yandi snotadmi ssi bl ei nevi denceagai nstt heofferor . ”Wefindnomeri ti n t hi sc o nt e nt i o n.Thede c l a r at i o no fnul l i t yo fs a i da gr e e me nt swa spr e mi s e do nt hef o l l o wi ngc o ns t i t ut i o na l andst atutor yi nfirmi t i es:( 1)t hegrantofcr i mi nali mmuni t ytot heMarcoshei rswasagai nstt hel aw;( 2) t hePCGG’ sc ommi t mentt oexemptf r om al lf or msoft axest heproper t i est ober et ai nedbytheMarc os hei rswasagai nstt heConst i t ut i on;and( 3)t hegovernment ’ sundert aki ngt ocauset hedi smi ss alofal l c asesfil edagai nstt heMarc os espendi ngbef or et heSandi ganbayan andot hercourt senc r oac hedont he Ther e a s o nsr e l i e dup o nb yt heCo ur tne v e ri nt hel e a s tb i te v e nt o uc he do nt he po we r so ft hej udi c i ar y . ve r aci t y and t rut hf ul nes s ofre spondent s’admi ss i on wi t hr es pec tt ot hei r owner shi p oft he Swi ss  f unds .   Bes i des,havi ngmadec er t ai nadmi ss i onsi nt hoseagr eement s,r es pondent scannotnow denyt hat t heyvol unt ari l yadmi t t edowni ngthesubj ectSwi ssf unds,not wi t hst andi ngt hef actt hatt heagreement s t hemsel veswerel aterdecl arednul landvoi d. Same; Same ;Same; Same ;Same; A wr i t t e ns t at e me nti snone t he l e s sc ompet e ntasanadmi s s i one ve n i fi ti sc o nt ai ne di nado c ume ntwhi c hi sno ti t s e l fe ffe c t i v ef o rt hepur p o s ef o rwhi c hi ti smade ,e i t he rb y r eas on ofi l l e g a l i t y ,o ri nc o mpe t e nc yo fa par t yt he r e t o ,o rb yr e as o no fno tb e i ng s i g ne d,e x e c ut e do r de l i v e r e d. —A wri t t en st ate menti snonet hel essc ompet entasan admi ss i on eveni fi ti scont ai nedi na do c ume ntwhi c hi sno ti t s e l fe ffe c t i v ef o rt hepur p o s ef o rwhi c hi ti sma de ,e i t he rb yr e a s o no fi l l e g al i t y ,o r i ncompetencyofapart yt here t o,orby reason ofnotbei ng si gned,exec ut ed ordel i vered.Acc ordi ngl y, co nt r act shavebeenhel dascompet ente vi denceofadmi ss i ons,al t hought heymaybeunenf or ce abl e. Same;Same; Same;Same; Same;Admi ss i onsofapart yi nhi st es t i monyarer ec ei vabl eagai ns thi m. —Fer di nand Jr . ’ s pronounc ements ,t aken i nc ont ext and i nt hei r ent i r et y,wer ea c onfirmat i on of re spondent s’re co gni t i on oft hei rowner shi p oft heSwi ssbank deposi t s.Admi ss i onsofapart yi n hi s t e s t i mo nyar er e c e i v abl eag ai ns thi m.I fapar t y ,asawi t ne s s ,de l i be r at e l yc o nc e de saf ac t ,s uc hc o nc e s s i o n ha st h ef o r c eo faj udi c i a la dmi s s i o n.I ti sa ppa r e ntf r o m Fe r d i na ndJr . ’ st e s t i mo nyt h att heMa r c o sf a mi l y agre edt onegot i at ewi t ht hePhi l i ppi negovernmenti nt hehopeoffinal l yput t i nganendt ot hepr obl ems beset t i ngt heMarc osf ami l yregardi ngtheSwi ssac co unt s.Thi swasdoubt l ess l yan acknowl edgmentof owners hi pont hei rpart .Therul ei st hatt het est i monyont hewi t nesss t andpart akesoft henatureofa f ormalj udi ci aladmi ssi on when apart yt est i fiescl earl yandunequi vocal l yt oaf actwhi c hi specul i arl y wi t hi nhi so wnknowl edge. Same; Same ;Same; Same ;Same; Thef ai l ur eofI me l da Marc ost os pec i fical l y deny t hee xi s t e nc e , muc hl e s st heg e nui ne n e s sa ndduee x e c ut i o n,o ft hei ns t r u me n t sb e a r i nghe rs i g na t ur e ,wa st a nt amo untt o aj udi c i a la dmi s s i o no ft heg e n ui ne n e s sa ndduee x e c u t i o no fs a i di ns t r u me n t s . — Res pondent s’owner shi p oft heSwi ssbankacc ount sasborneoutbyMrs .Marc os’mani f est at i oni sasbri ghtassunl i ght .Andher c l ai m t hatshe i smer el y a benefic i ary oft he Swi ssdepos i t si sbel i ed by herown si gnat ur eson t he appended c opi esoft he doc ument ssubs t ant i at i ng her owners hi p oft he f unds i nt he name oft he f oundat i ons.Asal ready ment i oned,s hef ai l ed t ospeci fical l ydeny underoatht heaut hent i ci t yofsuch document s,espec i al l yt hosei nvol vi ng “ Wi l l i am Saunders ”and “ JaneRyan”whi c h act ual l yre f er redt o Ferdi nandMarcosandImel daMarcos ,res pect i vel y.Thatf ai l ureofI mel daMarcost ospeci fical l ydenyt he exi st ence ,muc hl esst hegenui nenessanddueexec ut i on,oft hei nst rument sbeari nghersi gnat ure ,was t ant amountt oa j udi c i aladmi ss i on oft he genui nenes s and due exe c uti on ofs ai di ns t ruments ,i n accor dancewi t hSect i on8,Rul e8oft he1997Rul esofCi vi lProc edure. Same;Same; Same;Same; Same;Owi ngt ot hef ar r e achi nghi s t ori caland pol i t i cali mpl i cat i onsof t hi sc a s e ,t heCo ur tc o ns i de r e dande x ami ne d,i ndi v i dual l yandt o t al l y ,t hee v i de nc eo ft hepar t i e s ,e v e ni fi t mi g htha v eb o r de r e do nf a c t uala dj udi c a t i o n whi c h,b ya ut ho r i t yo ft her u l e sa nd j ur i s p r u de n c e ,i sno t

us ual l ydonebyt heSupre meCourt . —Al lt o l d,t hef o r e g o i ngdi s q ui s i t i o nne g at e st h ec l a i mo fr e s p o nde nt s t hat“ pet i t i onerf ai l ed t oprovet hatt heyacqui re d orown t heSwi ssf unds”and t hat“ i twasonl y by arbi t r ari l yi sol at i ng and t aki ng c ert ai n st at ement smade by pri vat er espondent soutofc ont extt hat peti t i onerwasabl et ot reatt heseasj udi ci aladmi ssi ons. ”TheCourti sf ul l y awareoft herel evance, mater i al i t yandi mpl i cat i onsofeverypl eadi nganddocuments ubmi t t edi nt hi scase.Thi sCourtcaref ul l y sc ruti ni zedt heproof spresentedbythepart i es.Weanal yzed,assess edandwei ghedt hem t oasc ert ai ni f each pi eceofevi denceri ght f ul l y qual i fied as an admi ssi on.Owi ng t ot he f arreac hi ng hi st ori caland po l i t i c a li mpl i c a t i o nso ft hi sc as e ,wec o ns i de r e da nde x ami ne d,i ndi v i dua l l ya ndt o t a l l y ,t hee v i de nc eo f t hepart i es,eveni fi tmi ghthaveborderedonf act ualadj udi cat i onwhi c h,byaut hori t yoft herul esand  j ur i s pr udenc e,i sno tus ual l ydonebyt hi sCour t .Ther ei snodoubti nourmi ndt hatr es pondentMa r c os es admi t t edowners hi poft heSwi ssbankdeposi t s. Same; Same ;Same; Same ;Same; Anadmi s s i onmadei nt hepl e adi ngsc annotbec ont r ove r t e dbyt he  par t y maki ng s uc h admi s s i o n and be c ome sc onc l us i v eon hi m,and t hatal lpr o o f ss ubmi t t e d byhi m c o nt r a r yt he r e t oo ri nc o ns i s t e ntt he r e wi t hs ho ul db ei g no r e d,whe t he ra no b j e c t i o ni si nt e r po s e db yt he adve r separt yornot . —Wehaveal waysadher edtot hef ami l i ardoc t r i net hatanadmi ss i onmadei nt he pl eadi ngsc annotbecont ro vert edbythepart ymaki ngsuchadmi ss i onandbec omesc oncl usi veonhi m,and t hatal lproof ssubmi t t edbyhi m contr aryt heret oori nconsi st entt herewi t hshoul d“ bei gnored,whet heran o bj e c t i o ni si nt e r p os e dbyt h ea dv e r s epa r t yo rno t .Thi sd o c t r i nei se mb odi e di nSe c t i o n4 ,Rul e12 9o ft he c i aladmi s s i ons Rul esofCourt :SEC. J 4. udi . —Anadmi ss i on,ver balo rwr i t t en,madebyapar t yi nt he courseoft heproc eedi ngsi nt hesamecase,doesnotrequi reproof .Theadmi ss i onmaybecontr adi ct edonl y byshowi ng t hati twasmade t hrough pal pabl emi st akeort hatno suc h admi s si on wasmade.I nt he absenceofacompel l i ngreasont othecontr ary,res pondent s’j udi ci aladmi ssi onofowners hi poft heSwi ss deposi t si sdefini t el ybi ndi ngont hem. Same ;Same ;Same ;Same ;Same ;The dec l ar at i ons ofa per s on ar e admi s s i bl e agai nsta part y whe ne v e ra “ pr i v i t yo fe s t at e ”e x i s t sbe t we e nt hede c l ar a nta nd t hepar t y ,t het e r m“ pr i v i t yo fe s t at e ”  ge ne r al l yde no t i ngas uc c e s s i o ni nr i ght s . —Thedecl arat i onsofaper sonareadmi ss i bl eagai nstapart y whenevera “ pri vi t yofest ate”e xi st sbet ween t hedecl arantand t hepart y,t het erm “ pri vi t yofes t ate” g e ne r a l l yde no t i ngas uc c e s s i o ni nr i g ht s .Co ns e q ue nt l y ,a na dmi s s i o no fo nei npr i v i t ywi t hapa r t yt ot he rec ordi sc ompetent.Wi t houtdoubt,pri vi t yexi st samongtherespondent si nt hi sc ase.Andwheres everal c o par t i e st ot her e c o r dar ej o i nt l yi nt e r e s t e di nt hes ubj e c tmat t e ro ft hec o nt r o v e r s y ,t headmi s s i o no fo ne i sc o mpe t e nta g ai ns ta l l . Same ;Same ;Same ;Same ;Pr e s umpt i ons;El e me nt soft hePr i maFac i ePr e s umpt i onUnde r§2ofRA 1379. —Sect i on2ofRA 1379expl i ci t l yst at est hat“ wheneveranypubl i coffic erorempl oyeehasacqui re d duri nghi si ncumbencyanamountofpropert ywhi c hi smani f est l youtofproport i ont ohi ssal aryassuc h publ i coffic erorempl oy eeand t ohi sot herl awf uli nc omeand t hei nc omef r om l egi t i mat el y acqui r ed  p i ma f ac i et propert y,sai d propert y shal lbe presume d r o havebeen unl awf ul l y acqui r ed.x x x”The  p i maf ac i e el ement swhi c h mustc oncurf ort h i sr   pres umpti on t oappl yare:( 1)t heoffenderi sa publ i c offic erore mpl oy ee;( 2)hemusthaveac qui r edac onsi derabl eamountofmoneyorpro pert ydur i ng hi s i ncumbency;and( 3)s ai damounti smani f est l youtofpr oport i on t ohi ssal aryassuc h publ i coffice ror empl oyeeandtohi sot herl awf uli ncomeandthei ncomef rom l egi t i matel yacqui redpropert y. Same;Same; Same;Same; Same;Apre sumpt i oni spri maf aci epr oofoft hef actpre sumedand,unl es s t hef ac tt huspr i ma f a c i ee s t ab l i s h e db yl e g a lp r e s u mp t i o ni sdi s p r o v e d ,i tmus ts t a nd a spr o v e d . —The bur den ofproo fwason t heres pondent st odi sputet hi spr es umpt i onandshow byc l earandc onvi nc i ng evi dencet hatt heSwi ssdeposi t swer el awf ul l yacqui re d and t hatt heyhad ot herl egi t i matesourc esof i ma f ac i eproo  p i ma i ncome.A pre sumpt i on  p i sr foft he f actpre sumed and,unl es st he f actt hu sr  f ac i e   e s t a bl i s he db yl e g alpr e s u mp t i o ni sd i s p r o v e d,i tmus ts t a ndasp r o v e d.

Same ;Par t i e s ; I ndi s p e ns a bl ePar t i e s ;Fai l ur et oj o i nani ndi s p e ns a bl epar t ydo e sno td i v e s tt hec o ur t o fj ur i s di c t i o ns i nc et her u l er e g a r di ngi ndi s p e ns a bl ep ar t i e si sf o unde do ne q ui t ab l ec o ns i de r a t i o nsa ndi s no tj ur i s d i c t i o na l —t hec o u r ti sno td i v e s t e do fi t sp o we rt or e nde ra de c i s i o ne v e ni nt hea bs e nc eo f i ndi s p e n s ab l ep ar t i e s ,t ho ug hs u c hj udg me n ti sno tb i ndi ngo nt heno nj o i ne dpa r t y . —TheCour tfindst hat peti t i onerRepubl i cdi dnoterri nnoti mpl eadi ngt hef orei gn f oundat i ons.Sect i on7,Rul e3oft he1997 Rul esofCi vi lProc edure,t akenf rom Rul e19boft heAmeri canFederalRul esofCi vi lProc edure,provi des f ort hecompul sor yj oi nderofi ndi spensabl epart i es.General l y,ani ndi spensabl epart ymustbei mpl eaded f o rt hec o mpl e t ede t e r mi na t i o no ft hes ui t .Ho we v e r ,f a i l ur et oj o i na ni ndi s p ens a bl epa r t ydo e sno tdi v e s t t he c ourtof j uri sdi ct i on si nce t he rul e regar di ng i ndi spensabl e part i es i sf ounded on equi t abl e c o ns i de r a t i o nsandi sno tj ur i s d i c t i o na l .Thus ,t hec o ur ti sno td i v e s t e do fi t spo we rt or e nde rade c i s i o n eveni nt heabsenceofi ndi spensabl epart i es,t houghsuc hj udgmenti snotbi ndi ngont henonj oi nedpart y. Same;Same; Same;Es se nt i alTes t sofan I ndi spensabl ePart y;Wor dsand Phr ases ;“ I ndi spensabl e  Par t y , ”De fine d. —Ani ndi spensabl epart yhasbeendefinedasone:[ who]musthaveadi re cti nt er esti nt he l i t i g at i o n;andi ft hi si nt e r e s ti ss uc ht hati tc a nno tb es e par a t e df r o mt hato ft hepar t i e st ot hes ui t ,i ft he courtcannotr enderj ust i cebet weent hepart i esi nhi sabsence,i ft hedecr eewi l lhavean i nj uri ouseffect up onhi si nt e r e s t ,o ri ft hefina ld e t e r mi na t i o no ft hec o nt r o v e r s yi nhi sab s e nc ewi l lb ei nc o ns i s t e ntwi t h equi t yand good consci ence.Therearetwoess ent i alt est sofan i ndi spensabl epart y:( 1)can rel i efbe affordedt hepl ai nt i ffwi t houtt hepres enceoft heot herpart y?and( 2)cant hecasebedeci dedoni t smeri t s wi t houtprej udi ci ngtheri ght soft heot herpart y?Therei s,however ,nofixedf ormul af ordet ermi ni ngwho i sa ni ndi s p e ns a bl epa r t y ;t hi sc a no nl ybede t e r mi ne di nt hec o nt e x ta ndb yt hef a c t so ft hepa r t i c u l a rs ui t o rl i t i gat i o n. Same; Same ;Same; Admi s s i ons;Theadmi s s i onbyre s ponde ntI me l daMarc ost hats hewast hes ol e b e ne fi c i a r yo f9 0% o ft hes u bj e c tma t t e ri nc o n t r o v e r s ywi t ht her e ma i ni ng1 0% b e l o ng i ngt ot hee s t at eo f  Fe r di nandMar c o so nl yc onfir me dwhatwasal r e adyg e ne r al l ykno wn—t hatt hef or e i gnf o undat i o nswe r e  e s t abl i s he dpr e c i s e l yt ohi det hemo ne ys t o l e nbyt heMar c o ss po us e sf r o mt heRe publ i c ,ne gat i ngwhat e v e r i l l us i o nt he r ewas ,i fan y ,t hatt hef o r e i g nf o undat i o nso wne de v e nano mi nalpar to ft heas s e t si nq ue s t i o n . —I nt he pr es entc as e,t her e wasan admi s s i on by r es pondentI mel da Mar c osi n herMay26,1998 Mani f est ati onbef or etheSandi ganbayant hatshewasthesol ebenefici aryof90% oft hesubj ec tmat t eri n co nt ro ver sywi t ht heremai ni ng10% bel ongi ngtot heest ateofFer di nandMarc os.Vi ewedagai nstt hi s ti admi ss i on, t he f or ei gn f oundati ons wer eno ndi spensabl e part i es.Thei r nonpart i ci pat i on i nt he proceedi ngsdi d notpreventthecourtf rom deci di ngt hecaseon i t smeri t sandaccor di ngf ul lrel i eft o pet i t i onerRepubl i c.Thej udgmentor deri ngt here t urnoft he$356mi l l i on wasnei t heri ni mi calt ot he f oundat i ons’i nt er est snori nco nsi st entwi t h equi t y and good c onsc i ence.Theadmi ss i on ofr espondent I mel daMarc osonl yc onfirmedwhatwasal r eadygener al l yknown:t hatt hef oundati onswer eest abl i shed prec i sel yt ohi det hemoneyst ol enbyt heMarc osspousesf r om pet i t i onerRepubl i c.I tnegat edwhat ever i l l us i o nt he r ewa s ,i fa ny ,t ha tt hef o r e i g nf o unda t i o nso wne de v e nano mi na lpa r to ft heas s e t si nq ue s t i o n. Same; Same ;Same; Same ;I nasmuc h ast heowne r s hi poft hef or e i gn f oundat i onsi nt heas s e t swas r epudi at ed by I mel da Marc os ,t he y co ul d no l onge rbeconsi der ed as i ndi spe nsabl epart i esand t hei r  par t i c i pat i o ni nt hepr oc e e di ngsbe c ameunne c e s s ar y . —Therul i ngsoft heSwi ssc ourtt hatt hef oundat i ons, as f or malowners ,mustbe gi ve n an oppor t uni t yt o part i c i pat ei nt he pro c ee di ngs hi nged on t he assumpt i ont hatt heyownedanomi nalshareoft heasset s.Butt hi swasal r eadyref ut edbynol esst han Mr s.Marc osher se l f .Thus,shec annotnow argue t hatt her ul i ng oft he Sandi ganbayan vi ol at ed t he c o ndi t i o nss e tb yt heSwi s sc o ur t .Thedi r e c t i v egi v e nb yt heSwi s sc o ur tf o rt hef o unda t i o nst opar t i c i pa t e i nt heproceedi ngswasf ort hepurposeofprot ect i ngwhatevernomi nali nt eres tt heymi ghthavehadi nt he ass et s as f or malo wners .Buti nasmuch as t hei rowners hi p was s ubs equent l yr epudi at ed by I mel da

Marc os,t hey co ul d no l onger be co nsi dered as i ndi spensabl e part i es and t hei rpart i ci pat i on i nt he proc eedi ngsbecameunnec ess ary. Same;Same; Same;I mpl e adi ngt hefirmswhi c haret her esoft heact i oni sunnec es sary  R publ i c . —I n e vs .Sandi ganbayan,t e soft hi s Courtr ul ed t hati mpl eadi ng t he firmswhi c h ar et her he act i on was unneces sary:“ Andast ocorporati onsorgani zedwi t hi l l got t en weal t h,butarenott hemsel vesgui l t yof mi sappropri ati on,f raudorot heri l l i ci tc onduct —i n ot herwords,t hecompani est hemsel vesarenott he e s o bj e c to rt h i ngi nv o l v e di nt hea c t i o n,t her   t her eof —t her ei snoneedt oi mpl eadt hem ei t her .I ndeed, t hei ri mpl eadi ngi snotproperon t hest rengt h al oneoft hei rhavi ngbeen f ormedwi t hi l l got t en f unds, absentanyot herpart i cul arwr ongdoi ngont hei rpart...Suc hshowi ngofhavi ngbeenf ormedwi t h,or ha v i ngr e c e i v e di l l g o t t e nf unds ,ho we v e rs t r o ngorc o n v i nc i ng ,do e sno t ,wi t ho utmo r e ,wa r r a nti de nt i f y i ng t he c or por at i onsi n quest i on wi t ht he per so n who f or med ormade use oft hem t o gi vet he c ol oror a ppe ar a nc eo fl a wf ul ,i nno c e nta c qui s i t i o nt oi l l e g al l yama s s e dwe al t h—a tt hel e as t ,no ts oa spl a c eo nt he Go ve r nment t heonusofi mpl eadi ng t he f or mer wi t ht he l at t er i n act i ons t or ec ove r such weal t h. Di st i ngui shed i nt erms ofj uri di calpers onal i t y and l egalcul pabi l i t yf rom t hei r err i ng membersor s t o c k ho l de r s ,s a i dc o r p o r a t i o nsar eno tt he ms e l v e sgui l t yo ft hes i nso ft hel a t t e r ,o ft hee mb e z z l e me nt , asport ati on,et c. ,t hat gave ri se t ot he Government ’ s cause ofact i on f orrec overy;t hei rcr eati on or organi zati onwasmerel yt heres ul toft hei rmembers’( ors t oc khol ders’ )mani pul ati onsandmaneuverst o r e s c o nc e a lt hei l l e galo r i g i nso ft heas s e t so rmo ni e si nv e s t e dt he r e i n.I nt hi sl i g ht ,t he yar es i mpl yt he i n t hea c t i o nsf o rt her e c o v e r yo fi l l e g al l ya c qui r e dwe al t h,a nd t he r ei s ,i n pr i nc i pl e ,n oc a us eo fa c t i o n agai nstt hem andnogroundt oi mpl eadt hem asdef endant si nsai dact i ons. ”Justl i kethecor porat i onsi n t heaf o r e me nt i o ne dc a s e ,t hef o r e i g nf o unda t i o nshe r ewe r es e tupt oc o nc e a lt hei l l e g al l yac q ui r e df undso f e s t heMarc oss pouses .Thus,t heywer esi mpl yt her   i nt heac t i o nf o rr e c o v er yofi l l g o t t e nwe al t handdi d nothavet obei mpl eadedf orl ackofcauseofact i onorgroundtoi mpl eadt hem. Same ;Sa me ;Sa me ;Ev e ni ft hef o r e i g nf o undat i o nswe r ei ndi s p e n s ab l epa r t i e s ,t hef ai l ur eo ft he  Re publ i ct oi mpl e ad t he mi sa c ur abl ee r r o r . — As s umi ngarguendo,   however ,t hatt hef oundat i onswer e i ndi spensabl e part i es,t he f ai l ureofpet i t i onertoi mpl ead t hem was a curabl e err or ,as hel di nt he publ i cv s .Sandi g anbay an:“ pr e v i o us l yc i t e dc a s e R o fe Eveni nt hosec aseswher ei tmi ghtr easonabl ybe arguedt hatt hef ai l ureoft heGovernmentt oi mpl eadt hesequest eredcorporat i onsasdef endant si si ndeed a proc eduralaberrat i on,as wher e sai d firmswereal l egedl y used,and act i vel y co operat ed wi t ht he de f e nda nt s ,a si ns t r ume nt so rc o ndui t sf o rc o n ve r s i o no fpub l i cf undsa ndpr o p er t yori l l i c i to rf r a udul e nt o bt e nt i o no ff a v o r e dg o v er nme ntc o nt r a c t s ,e t c . ,s l i g htr e fle c t i o nwo ul dne v e r t he l e s sl e adt ot hec o nc l us i o n  e g. t hatt hede f e c ti sno tf at al ,buto nec o r r e c t i bl eunde rappl i c a bl eadj e c t i v er ul e s —. ,Se c t i o n10,Rul e5o f t heRul esofCourt[ spec i f yi ngt heremedyofamendmentduri ngt ri alt oaut hor i zeort oconf orm t ot he evi dence] ;Sect i on 1,Rul e20 [ governi ng amendment sbef oretr i al ] ,i n rel ati on t ot he rul eres pect i ng o mi s s i o no fs o c a l l e dne c e s s a r yo ri ndi s p e ns a bl epa r t i e s ,s e to uti nSe c t i o n1 1,Rul e3o ft heRul e so fCo ur t . I ti srel evanti nt hi scont extt oadvertt ot heol df ami l i ardoct ri nest hattheomi ss i on t oi mpl ead suc h part i es“ i s a mer et ec hni c aldef ec twhi c hc an be c ur ed atany st age oft he proc eedi ngs eve n af t er  j udgment ” ;and t hat ,par t i c ul ar l yi nt he c as e of i ndi s pens abl e par t i es ,s i nc et hei r pr es enc e and part i ci pati on i sessenti alt otheveryl i f eoft heact i on,f orwi t houtt hem noj udgmentmayberendered, amendment soft hecompl ai nti nor dert oi mpl eadt hem shoul dbef re el yal l owed,evenonappeal ,i nf act evenaf t errendi t i onofj udgmentbyt hi sCourt ,wherei tappearst hatt hecompl ai nto t herwi sei ndi cat es t he i ri de nt i t ya ndc h ar a c t e rass uc hi ndi s p ens a bl epar t i e s . ” Same ;Sa me ;Sa me ;Theb e t t e rv i e wi st hatno nj o i nde ro fi ndi s p e n s ab l ep ar t i e si sno tag r o u nd t o di s mi s st hesui to rannult hej udgme nt . — Al t hough t her earedeci ded cas eswher ei nt henonj oi nderof i ndi spensabl epart i esi nf actl edt othedi smi ssaloft hesui tort heannul mentofj udgment ,suchcasesdo notj i bewi t ht hematt erathand.Thebet t ervi ew i st hatnonj oi nderi snotagroundt odi smi sst hesui tor

a nnult hej udg me nt .Ther ul eo nj o i nde ro fi ndi s p ens a bl epa r t i e si sf o unde do ne qui t y .Andt h es p i r i to ft he l a wi sr e fle c t e di nSe c t i o n1 1,Rul e31o ft he19 97Rul e so fCi v i lPr o c e d ur e .I tp r o hi b i t st hedi s mi s s a lo fa sui tont hegr oundofnonj oi nderormi sj oi nderofpart i esandal l owst heamendmento ft hecompl ai ntat a nys t a geo ft hepr o c e e d i ng s ,t hr o ug hmo t i o no ro no r d e ro ft hec o ur to ni t so wni ni t i a t i v e . Same; Same ;Same; The c ourthasj ur i s di c t i on t or e nde rj udgme ntwhi c h,e ve ni nt he abse nc eof i ndi s p e ns a bl ep ar t i e s ,i sb i ndi ngonal lt hep ar t i e sb e f o r ei tt ho ug hno to nt hea bs e ntpar t y . —Jur i spr udenc e ont heFederalRul esofProc edure,f rom whi chourSect i on7,Rul e31oni ndi spensabl epart i eswascopi ed, al l owst hej oi nderofi ndi spensabl epart i esevenaf t erj udgmenthasbeenent eredi fsuchi sneededt oafford t hemovi ngpart yf ul lrel i ef .Meredel ayi n fil i ngt hej oi ndermot i on doesnotneces sari l yres ul ti nt he wai veroft heri ghtasl ongast hedel ayi sexcusabl e.Thus,res pondentMrs .Marcosc annotcor rec t l yargue t hatt he j udgmentrender ed by t he Sandi ganbayan was vo i d due t ot he nonj oi nderoft he f or ei gn f oundat i ons.Thecourthad j uri sdi ct i ont orenderj udgmentwhi c h,eveni nt heabsenceofi ndi spensabl e pa r t i e s ,wa sb i ndi ngo na l lt hepa r t i e sbe f o r ei tt ho ug hno to nt heab s e ntp ar t y .I fs her e al l yf e l tt ha ts he coul dnotbegrant edf ul lrel i efduetot heabsenceoft hef orei gnf oundat i ons,sheshoul dhavemovedf or t hei ri ncl usi on,whi c hwasal l owabl eatanyst ageoft heproceedi ngs.Sheneverdi d.I nst eadsheassai l ed t hej udgmentr ender ed.  I l l Go t t e nWe al t h;Fo r f e i t ur ePr o c e e di ngs ;TheSwi s sde po s i t ss houl dbec o ns i de r e di l l go t t e nwe al t h a nd f o r f e i t e di nf a v o ro ft he St at e . —I nt he f ac e ofundeni abl ec i r c ums t anc esand t he aval anc he of document ary evi denceagai nstt hem,re spondentMarc osesf ai l ed t oj ust i f yt hel awf ulnatureoft hei r acqui si t i on oft he sai d asset s.Hence,t he Swi ssdeposi t sshoul d be consi dered i l l got t en weal t h and nt f or f ei t ed i nf avoroft he St at ei n acc or danc e wi t h Sec t i on 6 ofRA 1379:SEC. J 6.udgme . —I ft he r e s p o nde nti suna bl et os ho wt ot hes a t i s f a c t i o no ft hec o ur tt ha theha sl a wf ul l yac q ui r e dt h epr o p e r t yi n q ue s t i o n,t he nt hec o ur ts ha l lde c l a r es uc hpr o p er t yf o r f e i t e di nf a v oro ft heSt a t e ,a ndb yv i r t ueofs uc h  j udgmentt hepr o per t yaf or es ai ds hal lbec omepr oper t yoft heSt at exxx.  Judgme nt s ;Do c ume nt ar y Evi de nc e ;For e i gn Judgme nt s ;The pr e s e nt at i o n o ft he aut he nt i c at e d t r a ns l at i o nso ft heo r i g i na lc o p i e so ft heSwi s sd e c i s i o ni sno tder i g ue u rf o rt heSandi g a nb ay a nt omak e  findi ngs o ff ac t and r e ac hi t sc o nc l us i o ns —t he Sandi ganbay an’ s de c i s i on i s no t de pe nde nt o nt he de t e r mi nat i o no ft heSwi s sc o ur t s ,andne i t he ri st heSupr e meCo ur t ’ s . —Whi l ewear ei nre al i t yperpl exed bysuc hani ncomprehensi bl echangeofheart ,t heremi ghtnevert hel essnotbeanyrealneedtobel abort he i s s u e.Thepr e s e nt a t i o no ft heaut he nt i c a t e dt r a ns l a t i o nso ft heo r i g i na lc o pi e so ft heSwi s sd e c i s i o nwa s gueur notderi   f ort hepubl i cres pondentt omakefindi ngsoff actandreachi t sconcl usi ons.I nshort,t he Sandi ganbayan’ sdeci si onwasnotdependentont hedet ermi nat i onoft heSwi ssc ourt s.Fort hatmat t er , nei t heri st hi sCourt ’ s.Therel easeoft heSwi ssf undshel di nesc ro wi nt hePNBi sdependentsol el yont he de c i s i o no ft hi sj ur i s d i c t i o nt ha ts a i df undsb el o ngt ot h epe t i t i o ne rRe pub l i c .Wha ti si mpo r t a nti so uro wn assess mentoft hesuffici encyoft heevi dencet orul ei nf avorofei t herpeti t i onerRepubl i corres pondent Ma r c o s e s .I nt hi si ns t a nc e ,de s p i t et h ea bs e nc eo ft heaut he nt i c a t e dt r a ns l a t i o nso ft heSwi s sd e c i s i o ns , t hee vi de nc eo nhandt i l t sc o n vi nc i ng l yi nf a v oro fpe t i t i o ne rRe publ i c .

SPECI ALCI VI LACTI ON i nt heSupr emeCour t .Cer t i or ar i . Thef a c t sa r es t a t e di nt heo pi ni o no ft heCo ur t . TheSo l i c i t o rGe n e r a l   f o rpe t i t i o ne r .   an d c f o rF. R.Ma r c o s ,J r .  Bal do me r oS. P.Gat bont o n,Jr .  Mi he l l eLaz ar o   f orI mel daR.Marc os.  Po nc eEnr i l e ,Re y e s& Manal as t as f orI meeR.Marc os Manot oc .  Ro be r tA. C.Si s o n 

Sa l e s ,De Le o n ,Te c s o n   an  D d e s i de r i of orFer di nand R.Mar c os ,Jr .and I mel da ( I mee ) Mar c os Manot oc . CORONA ,. :  J Thi si sape t i t i o nf o rc e r t i o r a r iunde rRul e65o ft heRul e so fCo ur ts e e ki ngt o( 1 )s e ta s i det he Reso l ut i ondat edJanuary31,2002i ss uedbyt heSpeci alFi r stDi vi si onoft heSandi ganbayan i nCi v i lCa s eNo .0 14 1e nt i t l e d e . ,and  R publ i coft hePhi l i ppi ne sv s .Fe r di nandE.Mar c os ,e tal ( 2 )r e i ns t at ei t se ar l i e rde c i s i o nda t e dSe pt e mbe r19,2000whi c hf o r f e i t e di nf a vo ro fp e t i t i o ne r Republ i coft hePhi l i ppi nes( Republ i c)t heamounthel di n esc r ow i nt hePhi l i ppi neNat i onal Bank( PNB)i nt heaggre gat eamountofUS$658, 175, 373. 60aso fJanuary31,2002.  BACKGROUND OFTHECASE

On Dec ember17,1991,pet i t i onerRepubl i c ,t hr ough t he Pr es i dent i alCommi ss i on on Good Gover nment( PCGG) ,r epres ent edbyt heOffic eoft heSol i ci t orGener al( OSG) ,fil edapet i t i on f o rf o r f e i t ur eb e f o r et heSa ndi g anb ay an,do c k e t e da sCi v i lCa s eNo .0 141e nt i t l e de  R publ i co ft he  Phi l i ppi ne sv s . Fe r di nand E. Mar c os ,r e pr e s e nt e d by hi s Es t at e /He i r s and I me l da R.   pur s uantt oRA1379i nr e l a t i o nt oEx e c ut i v eOr d e rNo s .1 ,2,14  and14A.  Mar c o s , 1

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_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   AnActDec l ari ngForf ei t ureI nFavoroft heSt at eAnyPr opert yToHaveBeenUnl awf ul l yAcqui r edByAnyPubl i c

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Office ro rEmpl oye eandPro vi di ngFort hePro ce dureTheref or . 2   E. O.No .1 —p r o mul g a t e do nFe b r u ar y2 8 ,1 98 6 ,o nl yt wo( 2 )d a y saf t e rt heMa r c o s e sfl e dt hec o u nt r y ,c r e a t i ngt he PCGG whi c h waspri mari l yt askedt oass i stt hePre si denti nt her ec over yofvastgov ernmentres ourc esal l egedl y a ma s s e dbyf o r me rPr e s i d entMa r c o s , hi si mme d i a t ef a mi l y ,r e l a t i v e s ,a ndc l o s ea s s o c i a t e s , b o t hhe r ea ndab r o a d. 3   E. O.No .2 —i s s u e dt we l v e( 1 2)d a ysl a t e r ,wa r ni ngal lp e r s o nsa nde nt i t i e swhoha dk no wl e dg eo fp o s s e s s i o no fi l l g o t t e na s s e t sandp r o pe r t i e sund erpa i no fp ena l t i e spr e s c r i b e db yl a w,p r o hi b i t i ngt he mf r o mc o n c e a l i ng ,t r a ns f e r r i ng o rd i s s i p at i ngt h e mo rf r o mo t he r wi s ef r u s t r a t i ngo ro bs t r u c t i ngt h er e c o v e r ye ffo r t so ft heg o v e r nme nt . 4   E. O.No.14—Ser i esof1986,asamendedbyE. O.No.14A. Al s os e r i e so f1 98 6,v e s t e d Sa nd i g anb a ya nt hee x c l us i v ea ndo r i g i na lj ur i s d i c t i o no v e rc a s e s ,whe t he rc i v i lo r c r i mi na l ,t obefil e db yt hePCGG wi t ht heas s i s t a nc eo ft heOffic eo ft heSo l i c i t o rGe ne r a l .Thel a wa l s od e c l a r e dt h a t 5

t hec i v i la c t i o nsf o rt h er e c o v e r yo fu nl a wf ul l ya c q ui r e dp r o pe r t yund e rRe p ub l i cAc tNo .1 37 9o rf o rr e s t i t ut i o n, r e p a r at i o no fd ama ge s ,o ri nd e mni fic a t i o nf o rc o ns e q ue nt i a la ndo t h e rd ama ge so ra nyo t he rc i v i la c t i o nund e rt heCi v i l Co d eoro t he re x i s t i ngl a wsfi l e dwi t ht he 209

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I nsai dcase,pet i t i onersoughtt hedecl arat i onoft heaggregat eamountofUS$356mi l l i on( now est i matedt obemoret hanUS$658mi l l i oni ncl usi veofi nt eres t )deposi t edi nesc ro wi nt hePNB, asi l l got t enweal t h.Thef undswerepre vi ousl yhel dbyt hef ol l owi ngfiveacc ountgroups,usi ng v ar i o usf o r e i g nf o unda t i o nsi nc e r t a i nSwi s sb a nks : ( 1)Azi oVers oVi burFoundat i onacc ount s; ( 2)XandyWi nt rop:Chari sScol ari Val amoSpi nusAvert i naFoundati onacc ount s; ( 3)Tr i ni dadRaybyPal myFoundat i onac c ount s;

( 4)Ros al ys Aguami naFoundat i onacc ount sand ( 5)Mal erFoundat i onac c ount s. I n addi t i on,t hepet i t i on soughtt hef orf ei t ureofUS$25mi l l i onandUS$5mi l l i on i nt reasury not eswhi c hexc eededt heMarc oscoupl e’ ssal ari es,ot herl awf uli nc omeaswel lasi ncomef rom l egi t i mat el y acqui re d propert y.The t r easury not es are f r ozen att he Cent r alBank oft he Phi l i ppi nes,now BangkoSent ralngPi l i pi nas,byvi rt ueoft hef reez eorderi ss uedbythePCGG. On Oc t obe r18,1993,r es pondent sI mel daR.Mar c os ,Mar i aI mel daM.Manot oc ,I r eneM.  Ar ane t aandFer di nandR.Mar c os ,Jr .fil edt hei rans wer . Bef or et he c as e was s e tf or pr et r i al , a Gener al Agr ee ment and t he Suppl ement al  Agr eement s  dat edDec ember28 ,1993wer eex ec ut edbyt heMar c osc hi l dr enand t hen PCGG Chai rman Magt anggolGuni gundof oragl obalse t t l ementoft heass et soft heMar c osf ami l y. Subs equent l y ,r es pondentMar c oschi l dr en fil ed a mot i on dat ed Dec ember7,1995 f ort he appro valofsai dagreement sandf ort heenf orc ementt her eof . The Gener alAgre ement / Suppl ement alAgre ement ss oughtt oi dent i f y,c ol l at e,c auset he i nvent oryofanddi st ri but eal lasse t spres umedt obeownedbyt heMarc osf ami l yundert he condi t i onsc ont ai nedt herei n.Theaf orement i onedGeneralAgreementspeci 6

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _  e Sandi ganbayanagai nstFer di nandMarc os , tal . ,ma ypr o c e e di nd e pe nd e nt l yo fa nyc r i mi na lp r o c e e d i n gsa ndma y b epr o v e dbypr e p o n de r a n c eo fe v i d e nc e . 6  Fr anc i s c oI .Chav e zv s .PCGG and Dec l are dnul landvoi dbythi sCourto n Dec ember9,1998 i nt hecaseof  Magt anggolGuni gundo , ”d o c k e t e dasG. R.No .1 3 07 16 . 210

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fiedi n oneofi t spr emi sesor“ whereascl auses ”t hef actt hatpet i t i oner“ obtai nedaj udgment f r om t he Swi s sFeder alTr i bunalo n Dec ember21,1990,t hatt he Thre e Hundr ed Fi f t ys i x Mi l l i o n U. S.do l l a r s( US$ 35 6 mi l l i o n)b el o ng si n pr i nc i pl et ot heRe pub l i co ft hePhi l i ppi ne s pr o v i de dc e r t a i nc o ndi t i o na l i t i e sa r eme txxx . ”Thes a i dde c i s i o no ft heSwi s sF ede r a lSupr e me Courtaffirmedt hedeci si onofZuri c hDi st ri ctAt t orneyPet erConsandey,grant i ngpet i t i oner’ s r e q ue s tf o rl e g alas s i s t a nc e .Consandey dec l ar ed t he var i ous depos i t si nt he name oft he enumerat edf oundat i onst obeofi l l egalprovenanceandorderedt hatt heybef roz ent oawai tt he finalv er di c ti nf a vo roft hepar t i e sent i t l e dt or e s t i t ut i o n. Hear i ngs wer e c onduct ed by t he Sandi ganbay an on t he mo t i on t o appr o ve t he Gener al / Suppl ement alAgree ment s.RespondentFer di nand,Jr .waspr es ent edaswi t nessf ort he pur p o s eo fe s t a bl i s hi ngt hep ar t i a li mpl e me nt a t i o no fs a i dag r e e me nt s . On Oc t ober18,1996,pet i t i onerfil edamot i onf ors ummaryj udgmentand/ orj udgmenton t hepl eadi ngs.RespondentMr s.Marc osfil edheropposi t i ont her et owhi c hwasl at eradopt edby r espondent sMrs .Manot oc ,Mr s.Ar anet aandFer di nand,Jr . 7

I ni t sres ol ut i ondat edNovember20,1997, t heSandi ganbayandeni edpet i t i oner’ smot i onf or summaryj udgmentand/ orj udgmentont hepl eadi ngso nt hegr oundt hatt hemot i ont oappr ov e t hec ompromi seagreement“ ( t ook)prec edenc eo vert hemot i onf orsummaryj udgment . ” Res pondentMr s.Marc osfil edamani f es t at i ononMay26,1998c l ai mi ngshewasnotapart y t ot hemot i onf orappr ovaloft heCompromi s eAgre ementandt hats heowned90% oft hef unds wi t ht her emai ni ng10% bel ongi ngt ot heMarc oses t at e. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   I nApri l1986,purs uantt oE. O.No.2,t heRepubl i coft hePhi l i ppi nesthrough t hePCGG fil edare questf or

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mutualass i st ancewi t ht he Swi ssFeder alPol i ceDepart ment ,undert he proc edure soft he I nter nat i onalMut ual  As s i s t anc ei nCr i mi nalPr o c e edi ngs( I MAC)t of r e ez et hebankde pos i t soft heMar c os e sl o c at e di nSwi t z er l and. I MAC i sa d o me s t i cs t a t u t eo fS wi t z e r l a nd whi c hg e ne r a l l ya ffo r d sr e l i e ft ot hek i nd o fr e q u e s tf r o mf o r e i g n g o v e r n me nt so re n t i t i e sa sa ut ho r i z e dund e rE. O.No .2 . Thev ar i o usSwi s sl o c a la ut ho r i t i e sc o n c e r n edg r a nt e dt her e q ue s to fp e t i t i o ne rRe pub l i c ,a ndo r d e r e dt h eSwi s s d e po s i t st obe“ b l o c k e d”u nt i lt hec o mp e t e n tPhi l i p pi nec o ur tc o u l dd e c i d eo nt hema t t e r . 211

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Meanwhi l e,on Augus t 10,1995,pet i t i oner fil ed wi t ht he Di s t r i c t At t or ney i n Zur i c h, Swi t zer l and,an addi t i onalr equestf ort he i mmedi atetr ansf eroft he deposi t stoan esc ro w acc ounti nt hePNB.Ther equestwasgr ant ed.Onappealbyt heMar c os es ,t heSwi ssFeder al Supre me Court ,i n a dec i si on dat ed Dec ember10,1997,uphel dt he rul i ng oft he Di s t r i c t  At t or ne yofZur i c hgr ant i ngt her eques tf ort het r ans f eroft hef unds .I n1998,t hef undswer e remi t t edt ot hePhi l i ppi nesi nesc ro w.Subsequent l y,res pondentMarc osc hi l drenmovedt hatt he f undsbepl acedi nc us t o di al e g i sbec auset hedeposi ti n es c r ow i nt hePNB wasal l egedl yi n dangerofdi ss i pati on bypet i t i oner .TheSandi ganbayan,i ni t sres ol ut i on dat edSeptember8, 1998,grant edt hemot i on.  Af t ert hepr et r i alandt hei s s uanc eoft hepr et r i alor derands uppl ement alpr et r i alor der dat ed Oct ober28,1999 and January 21,2000,r espect i vel y,t hecasewassetf ort ri al .Af t er se ver alr ese t t i ngs,pet i t i oner ,onMarc h 10,2000,fil edanot hermot i onf orsummaryj udgment “ pe r t a i ni ngt ot hef o r f e i t ur eo ft heUS$ 35 6mi l l i o n,b as e do nt hef o l l o wi ngg r o unds : I THE ESSENTI ALFACTSWHI CH WARRANTTHEFORFEI TURE OFTHEFUNDSSUBJECTOFTHE PETI TI ON UNDER R. A.NO.1379AREADMI TTED BYRESPONDENTSI N THEI RPLEADI NGSAND OTHERSUBMI SSI ONSMADE I N THE COURSEOFTHEPROCEEDI NG. I I RESPONDENTS’ADMI SSI ON MADEDURI NGTHEPRETRI ALTHATTHEYDO NOTHAVEANY I NTEREST OR OWNERSHI P OVER THE FUNDS SUBJECT OF THE ACTI ON FOR FORFEI TURE TENDERS NO GENUI NE I SSUE OR CONTROVERSY AS TO ANY MATERI AL FACT I N THE PRESENTACTI ON,THUSWARRANTI NG THERENDI TI ON OFSUMMARYJUDGMENT. 8

Pe t i t i o ne rc o nt e nde dt ha t ,af t e rt he pr e t r i a lc o nf e r e nc e ,c e r t a i nf a c t s we r ee s t a bl i s he d, warr ant i ngasummaryj udgmentont hef undss oughtt obef orf ei t ed. Res pondent Mr s .Mar c os fil ed her oppos i t i on t ot he pet i t i oner ’ s mot i on f or s ummary  j udgment ,whi c hoppos i t i onwasl at eradopt ed _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Vo l umeI I I , Ro l l o ,p .2 19 5.

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byherc ore spondent sMr s.Manot oc ,Mrs .Ar anet aandFer di nand,Jr . OnMar c h24,2000,ahear i ngont hemo t i onf ors ummaryj udgmentwasc onduc t ed. I nade c i s i o n  dat edSept ember19,2000,t heSandi ganbayangrant edpet i t i oner’ smot i onf or s ummar yj udgment : 9

CONCLUSI ON The r ei snoi s s ueo ff ac twhi c hc al l sf o rt hepr e s e nt at i o no fe v i de nc e . TheMot i onf orSummaryJudgmenti sher ebygr ante d. The Swi ss ,depos i t swhi c h wer et r ans mi t t ed t oand now hel di n es c r ow att he”PNB ar edee med unl a wf ul l yac q ui r e dasi l l g o t t e nwe al t h. DI SPOSI TI ON “ WHEREFORE,j udgmenti shere byre ndere di nf avoroft heRepubl i co ft hePhi l i ppi nesandagai nst t herespondent s,decl ari ngt heSwi ssdeposi t swhi c hwer etr ansf err edt oandnow deposi t edi nesc ro w at t hePhi l i ppi neNat i onalBanki nt heto t alaggr egateval ueequi val entt oUS$627, 608, 544. 95asofAugust 31 ,2000t o g e t he rwi t ht hei nc r e me nt st he r e o ff o r f e i t e di nf a vo ro ft heSt at e . ” 10

RespondentMr s.Marc osfil edamot i onf orr ec onsi derat i ondat edSept ember26,2000.Li kewi se, Mr s.Manot ocandFer di nand,Jr .fil edt hei rown mot i on f orr ec onsi derat i on dat edOct ober5, 2000.Mr s .Ar anet a fil ed a mani f es t at i on dat ed Oc t ober4,2000 adopt i ng t he mot i on f or rec onsi derati onofMrs .Marc os,Mrs .Manot ocandFerdi nand,Jr . Subs e que nt l y ,pe t i t i o ne rfil e di t so ppo s i t i o nt he r e t o . I nar e s o l ut i o n  dat edJanuary31,2002,t heSandi ganbayanr ever se di t sSept ember19,2000 deci si on,t husdenyi ngpet i t i oner’ smot i onf ors ummaryj udgment : 11

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Pe nne db yJ us t i c eCa t a l i n oR.Ca s t a ñe d a,J r .a ndc o n c u r r e di nb yPr e s i d i ngJus t i c eFr a n c i sE.Ga r c hi t o r e n aa nd  As s oc i at eJus t i c eGr ego r yS.Ong. 9

  Vo l umeI I I , Ro l l o ,p.2 21 8. 11   P e nne db yPr e s i d i ngJus t i c eFr a nc i sE.Ga r c h i t o r e n awi t ht hes e p ar a t ec o n c ur r i ngo pi ni o nso fAs s o c i a t eJ us t i c e Ni c o d e moT.Fe r r e ra ndAs s o c i a t eJ us t i c eGr e g o r yS.Ong .As s o c i a t eJ us t i c e sCa t a l i noR. 10

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 Republic vs. Sandiganbayan CONCLUSI ON “ I nsum,t heevi denc eoffer edf ors ummaryj udgmentoft hec asedi dnotpro vet hatt hemoneyi nt heSwi ss Banksbel ongedt ot heMarc osspousesbec ausenol egalproofexi st si nt herec or dast ot heowner shi pby t heMarc os eso ft hef undsi nes c r owf r om t heSwi ssBanks. Thebasi sf ort hef orf ei t urei nf avoroft hegovernmentcannotbedeemedtohavebeenest abl i shedand ourj udgmentt hereon,perf orc e,mustal sohavebeenwi t houtbasi s. WHEREFORE,t hedeci si onoft hi sCourtdate dSept ember19,2000i sr ec onsi dere dandsetasi de,and t hi sc a s ei sno wb ei ngs e tf o rf ur t he rpr o c e e di ng s . ” 12

Hence,t hei nst antpet i t i on.I n fil i ngt hesame,pet i t i onerarguest hatt heSandi ganbayan,i n re vers i ngi t sSeptember19,2000 deci si on,commi t t edgraveabuseofdi sc re t i on amount i ngto l ac ko re xc e s so fj ur i s di c t i o nc o ns i de r i ngt hat — I PETI TI ONER WAS ABLE TO PROVE I TS CASE I N ACCORDANCE WI TH THE REQUI SI TES OF SECTI ONS2AND 3OFR. A.NO.13 79 :  A. PRI VATE RESPONDENTS CATEGORI CALLY ADMI TTED NOT ONLY THE PERSONAL CI RCUMSTANCES OF FERDI NAND E.MARCOS AND I MELDA R.MARCOS AS PUBLI C OFFI CI ALSBUTALSO THE EXTENTOFTHEI R SALARI ESASSUCH PUBLI C OFFI CI ALS, WHO UNDER THE CONSTI TUTI ON, WERE PROHI BI TED FROM ENGAGI NG I N THE MANAGEMENTOFFOUNDATI ONS. B. PRI VATE RESPONDENTS ALSO ADMI TTED THE EXI STENCE OF THE SWI SS DEPOSI TS  AND THEI ROWNERSHI PTHEREOF: 1. ADMI SSI ONSI N PRI VATERESPONDENTSANSWER; 2. ADMI SSI ON I N THE GENERAL/ SUPPLEMENTAL AGREEMENTS THEY SI GNED AND SOUGHTTO I MPLEMENT; 3. ADMI SSI ON I N A MANI FESTATI ON OF PRI VATE RESPONDENT I MELDA R.MARCOS  RESI ALEGI S;ND  AND I N THEMOTI ON TO PLACETHE N CUSTODI  A _ _ _ _ _ _ __ _ _ _ _ _ _ _ Ca s t a ñe d a,J r . a ndFr a nc i s c oH.Vi l l a r uz ,J r . b o t hwr o t et h e i rr e s p e c t i v edi s s e nt i ngo pi ni o ns .   Vo l umeI , Ro l l o ,p p.1 45 1 4 6.

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4. ADMI SSI ON I N THE UNDERTAKI NG TOPAYTHE HUMAN RI GHTSVI CTI MS. C. PETI TI ONERHASPROVED THE EXTENTOFTHE LEGI TI MATEI NCOMEOFFERDI NAND E.MARCOSAND I MELDA R.MARCOSASPUBLI COFFI CI ALS. MA FACI EPRESUMPTI D. PETI TI ONER HAS ESTABLI SHED  P A RI ON OF UNLAWFULLY  ACQUI RED WEALTH.

I I SUMMARY JUDGMENT I S PROPER SI NCE PRI VATE RESPONDENTSHAVE NOT RAI SED ANY GENUI NEI SSUEOFFACTCONSI DERI NGTHAT:  A. PRI VATE RESPONDENTS’ DEFENSE THAT SWI SS DEPOSI TS WERE LAWFULLY  ACQUI RED DOESNOTONLYFAI LTO TENDERAN I SSUEBUTI SCLEARLYASHAM;AND B. I N SUBSEQUENTLY DI SCLAI MI NG OWNERSHI P OF THE SWI SS DEPOSI TS,PRI VATE RESPONDENTS ABANDONED THEI R SHAM DEFENSE OF LEGI TI MATE ACQUI SI TI ON,  AND THI SFURTHERJUSTI FI ED THERENDI TI ON OFASUMMARYJUDGMENT. I I I THEFOREI GN FOUNDATI ONSNEEDNOTBEI MPLEADED. I V THE HONORABLE PRESI DI NG JUSTI CE COMMI TTED GRAVE ABUSE OF DI SCRETI ON I N REVERSI NG HI MSELF ON THE GROUND THAT ORI GI NAL COPI ES OF THE AUTHENTI CATED SWI SS DECI SI ONS AND THEI R “ AUTHENTI CATED TRANSLATI ONS” HAVE NOT BEEN SUBMI TTED TO THE COURT, WHEN EARLI ER THE SANDI GANBAYAN HAS QUOTED EXTENSI VELYAPORTI ON OFTHETRANSLATI ON OFONEOFTHESESWI SSDECI SI ONSI N HI S  P A” DATED JULY 29,1999 WHEN I “ ONENCI T DENI ED THE MOTI ON TO RELEASE ONE HUNDRED FI FTY MI LLI ON USDOLLARS( $150, 000, 000. 00)TO THEHUMAN RI GHTSVI CTI MS.  V PRI VATE RESPONDENTS ARE DEEMED TO HAVE WAI VED THEI R OBJECTI ON TO THE  AUTHENTI CI TYOFTHESWI SSFEDERALSUPREMECOURTDECI SI ONS . 13

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Vo l umeI ,Ro l l o ,p p.6 06 2.

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Pe t i t i o ne r ,i nt hema i n,a s s e r t st ha tno whe r ei nt her e s p o nde nt s ’ mo t i o nsf o rr e c o ns i de r a t i o na nd suppl ement almot i on f orrec onsi derat i on weretheaut hent i ci t y,acc uracyand admi ss i bi l i t yof t heSwi s sd e c i s i o nse v e rc ha l l e ng e d.Ot he r wi s es t a t e d ,i twa si nc o r r e c tf o rt heSa ndi g anb ay ant o us et hei s s u eo fl a c ko fa ut he nt i c a t e dt r a ns l a t i o nso ft hede c i s i o nso ft heSwi s sFe de r a lSupr e me Co ur ta st heba s i sf o rr e v e r s i ngi t s e l f n b e c a us er e s p o nde nt st he ms e l v e sne v e rr a i s e dt hi si s s uei t hei rmot i onsf orrec onsi derat i on and suppl ement almot i on f orrec onsi derati on.Furt hermore, t hi s part i cul ar i ss ue rel ati ng t ot he t ransl at i on oft he Swi sscourtdeci si ons coul d notbe res urr ect edanymorebecauses ai ddeci si onshadbeenprevi ousl yut i l i zedbyt heSandi ganbayan i t s e l fi nr e so l vi nga“ de ci s i v ei s s ue ”be f o r ei t .

Pe t i t i o ne rf a ul t st heSa ndi g anb ay anf o rq ue s t i o ni ngt h eno npr o d uc t i o no ft heaut he nt i c a t e d t ransl ati onsoft heSwi ssFederalSupremeCourtdeci si onsast hi swasamargi nalandtec hni cal mat t ert hatdi dnotdi mi ni shbyanymeasuret heco nc l usi venessands t re ngt hofwhathadbeen pro ven and admi t t ed bef or et he Sandi ganbayan,t hati s,t hatt he f unds deposi t ed by t he Ma r c o s e sc o ns t i t ut e di l l g o t t e nwe al t ha ndt husbe l o ng e dt ot h eFi l i pi nope o pl e . I ncompl i ancewi t ht heor deroft hi sCourt ,Mrs .Marc osfil edherc ommentt ot hepet i t i onon May22,2002.Af t ers ever almot i onsf ore xt ensi onwhi c hwer eal lgrant ed,t hecommentofMrs . Manot ocandFer di nand,Jr .andt hesepar at ec ommentofMr s .Ar anet awer efil edonMay27, 2002. Mrs .Marc osasser t st hatt hepet i t i onshoul dbedeni edont hef ol l owi nggrounds:  A. PETI TI ONERHASAPLAI N,SPEEDY,ANDADEQUATEREMEDYATTHESANDI GANBAYAN. B. THE SANDI GANBAYAN DI D NOT ABUSE I TS DI SCRETI ON I N SETTI NG THE CASE FOR FURTHER PROCEEDI NGS. 14

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Vo l umeI V ,Ro l l o ,p .2 60 5.

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Mr s.Marc osc ont endst hatpet i t i onerhasapl ai n,speedyandadequat eremedyi nt heordi nary courseofl aw i nvi ew oft heres ol ut i onoft heSandi ganbayandatedJanuary31,2000di rec t i ng pe t i t i o ne rt os ubmi tt heaut he nt i c a t e dt r a ns l at i o nso ft heSwi s sde c i s i o ns .I n s t e a do fa vai l i ngo f sai dr emedy,pet i t i onernow el evat est hemat t ert ot hi sCourt .Acc or di ng t oMrs .Marc os,a pet i t i on f or c er t i or ariwhi c h does notc ompl y wi t ht he r equi r ement s oft he rul es may be di s mi s s e d .Si nc epe t i t i o ne rha sapl a i n,s p e edya nda de q ua t er e me dy ,t ha ti s ,t opr o c e e dt ot r i a l a nds ub mi ta ut he nt i c a t e dt r a ns l a t i o nso ft heSwi s sd e c i s i o ns ,i t spe t i t i o nb ef o r et hi sCo ur tmus t b e di s mi s s e d .Co r o l l a r i l y ,t heSa ndi g anba y an’ sr ul i ngt os e tt hec a s ef o rf ur t he rpr o c e e di ng s cannotandshoul dnotbeconsi deredacapri ci ousandwhi msi calexer ci seofj udgment . Li kewi se,Mrs .Manot ocandFerdi nand,Jr . ,i nt hei rc omment ,prayedf ort hedi smi ss aloft he pe t i t i o no nt hegr o undst hat : ( A) BYTHETI MEPETI TI ONERFI LEDI TSMOTI ON FORSUMMARYJUDGMENTON 10MARCH 2000, I TWASALREADYBARRED FROM DOI NG SO. ( 1)The Mo t i on f or Summar y Judgment was bas e do n pr i vat er es ponde nt s ’Answer and o t her document st hathadl ongbeeni nt here co r dsoft hecase .Thus,byt het i met heMot i onwasfil edon 10Marc h2000,est oppelbyl acheshadal readyseti nagai nstpeti t i oner .

( 2)Byi t sposi t i veact sandexpr es sadmi ss i onspr i ort ofil i ngt heMot i onf orSummaryJudgmenton 1 0 Ma r c h1 99 0,pe t i t i o ne rha dl e g al l yb oundi t s e l ft og ot ot r i a lo nt heba s i so fe x i s t i ngi s s u es . Thus,i tcl earl ywai vedwhat everri ghti thadt omovef ors ummaryj udgment . ( B) EVEN ASSUMI NG THAT PETI TI ONER WAS NOT LEGALLY BARRED FROM FI LI NG THE MOTI ON FOR SUMMARY JUDGMENT,THE SANDI GANBAYAN I S CORRECT I N RULI NG THAT MAFACI E  PETI TI ONER HASNOTYETESTABLI SHED P A RI CASEFORTHEFORFEI TURE OFTHE SWI SSFUNDS. ( 1 )Re pub l i cAc tNo .1 37 9,t heappl i c a bl el a w,i sape na ls t a t ut e .Ass uc h ,i t spr o v i s i o ns ,p ar t i c ul ar l y t heess ent i alel ement sst ate di n sec t i on 3 t her eof ,aremandat oryi n nat ure .Thoseshoul d be s t r i c t l yc o ns t r ue dag ai ns tp e t i t i o ne randl i be r a l l yi nf a vo ro fp r i v at er e s po nde nt s . ( 2 )Pe t i t i o ne rha sf a i l e dt oe s t a bl i s ht het hi r dandf o ur t he s s e nt i a le l e me nt si nSe c t i o n3o fR. A.1 37 9 wi t hr e s p e c tt ot hei de nt i fic a t i o n,o wn217

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er shi p,andapproxi mat eamountoft hepro pert ywhi c ht heMarc osc oupl eal l egedl y“ac qui re dduri ng t hei ri ncumbency” . ( a)Pet i t i onerhasf ai l edt opro vet hatt heMarcosc oupl e“ acqui red”oro wnt heSwi ssf unds. ( b)Evenassumi ng,f ort hesakeofargument ,t hatt hef actofacqui si t i onhasbeenproven,pet i t i oner hascat egor i c al l yadmi t t edt hati thasnoevi denc eshowi nghow muchoft heSwi ssf undswas acqui r ed“ dur i ngt hei ncumbenc y”oft heMarc osc oupl ef r om 31Dec ember1965t o25February 1986. ( 3 )I nc o nt r a v e nt i o no ft hee s s e nt i a le l e me nts t a t e di nSe c t i o n3( e )o fR. A.1 37 9,pe t i t i o ne rha sf a i l e d t oest abl i sh t heot herpr operearni ngsand i nco mef ro ml egi t i mate l y acqui r ed propert y oft he Marc osc oupl eoverandabovet hei rgover nmentsal ari es. ( 4)Si ncepet i t i onerf ai l edt oprovet het hreeessenti alel ement sprovi ded i nparagraphs( c) ( d)and  p i ma f ac i epre ( e )ofSect i on 3,R. A.1379,t hei nesc apabl econcl usi on i sthatt h er sumpt i on of unl awf ulacqui si t i on oft he Swi ssf unds has notyetatt ached.Ther ec an,t her ef or e,be no pr e ma t ur ef o r f e i t ur eo ft hef unds . 15

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( C) I T WAS ONLY BY ARBI TRARI LY I SOLATI NG AND THEN TAKI NG CERTAI N STATEMENTS MADE BYPRI VATERESPONDENTSOUTOFCONTEXTTHATPETI TI ONERWASABLETOTREAT MA FACI EAND THESE AS “ JUDI CI AL ADMI SSI ONS” SUFFI CI ENT TO ESTABLI SH  P A RI THEREAFTERACONCLUSI VECASETOJUSTI FYTHE FORFEI TUREOFTHESWI SSFUNDS.

1.( 1) UnderSec t i on27,Rul e130oft heRul esofCourt ,t heGeneralandSuppl ement alAgre ement s, as wel last he ot herwri t t en and t es t i moni alst ate ment ssubmi t t ed i n re l at i on t her et o,are expres sl ybarredf rom bei ngadmi ssi bl ei nevi denceagai nstpri vateres pondent s. _ _ _ _ _ _ __ _ _ _ _ _ _ _   Se c .3 —t hepe t i t i o ns h al lc o n t a i nt hef o l l o wi ngi n f o r ma t i o n

15

xxx ( c)Theapproxi mat eamountofpropert yhehasacqui redduri nghi si ncumbencyi nhi spastandpres entofficesandempl oyments .

  ( d )Ad es c r i p t i o no fs a i dp r o pe r t y ,o rs u c ht he r e o fa sha sbe e ni d e nt i fie db yt heSo l i c i t o rGe ne r a l .

16

  ( e )Thet o t a la mo u nto fh i sg o v e r n me nts a l a r ya ndo t h e rp r op e re a r ni ng sa ndi nc o me sf r o ml e g i t i ma t e l yac q u i r e dp r o p er t yxxx .

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( 2)Had pet i t i onerbot her edt owei gh t heal l egedadmi ss i onsto get herwi t ht heot herst at ement son r ec or d,t her ewoul d bea demonst r abl eshowi ng t hatno suc h“ j udi c i aladmi ss i ons”wer emade by pri vaterespondent s. ( D) SI NCE PETI TI ONER HAS NOT ( YET) PROVEN ALL THE ESSENTI AL ELEMENTS TO MA FACI E  ESTABLI SH   APRI CASE FOR FORFEI TURE,AND PRI VATE RESPONDENTS HAVE NOT MADE ANYJUDI CI ALADMI SSI ON THATWOULDHAVEFREED I TFROM I TSBURDEN OFPROOF, THE SANDI GANBAYAN DI D NOT COMMI T GRAVE ABUSE OF DI SCRETI ON I N DENYI NG THE MOTI ON FOR SUMMARY JUDGMENT.CERTI ORARI ,THEREFORE,DOES NOT LI E,ESPECI ALLY  ASTHI SCOURTI SNOTATRI EROFFACTS . 18

Fo rhe rpa r t ,Mr s .Ar a ne t a ,i nhe rc o mme ntt ot h epe t i t i o n,c l a i mst ha to b vi o us l ype t i t i o ne ri s unabl etoc ompl y wi t h a ver y pl ai nr equi r ementofr es pondentSandi ganbayan.Thei ns t ant pe t i t i o ni sal l e g e dl ya na t t e mp tt oe l e v at et ot hi sCo ur tma t t e r s ,i s s u e sa nd i nc i de nt swhi c h shoul dbeproper l yt hr eshedoutatt heSandi ganbayan.Tores pondentMr s.Ar anet a,al lot her ma t t e r s ,s a v et ha tpe r t a i ni ngt ot h ea ut he nt i c a t i o no ft het r a ns l a t e dSwi s sCo ur tde c i s i o ns ,a r e i rr el evant and i mpert i nent as f ar as t hi s Courti sc oncer ned.Res pondentMr s.Ar anet a mani f es t st hats hei saseagerasr espondentSandi ganbayan oranyi nt er es t edpers ont ohave t he Swi s s Cour t dec i s i ons offic i al l yt r ansl at ed i n our kno wn l anguage . She s ay st he aut hent i cat edoffici alEngl i shvers i on oft heSwi ssCourtdeci si onsshoul dbepresented.Thi s shoul ds t op al ls pec ul at i ons on what i ndeed i sc ont ai ned t her ei n.Thus,r es pondentMr s.  Ar ane t apr ayst hatt hepe t i t i on bedeni edf orl ac k ofmer i tandf orr ai s i ngmat t er swhi c h,i n e l a bo r a t e df a s hi o n,a r ei mpe r t i ne nta ndi mpr o p e rb e f o r et hi sCo ur t .  PROPRI ETY

OF

PETI TI ONER’ S

 ACTI ON FOR CERTI ORARI

Butb ef o r et hi sCo ur tdi s c u s s e st hemo r er e l e v a nti s s u es ,t heq ue s t i o nr e g a r di ngt h epr o p r i e t yo f pe t i t i o ne rRe publ i c ’ sa c t i o nf o rc e r t i o r ar iunde rRul e65o ft he19 97Rul e so fCi v i lPr o c e dur e 19

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Vo l umeI V ,Ro l l o ,p p.2 6 51 2 6 54 .   Sa mea sSe c t i o n1 ,Rul e6 5o ft heo l dRul e so fCo ur t .

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assai l i ngt heSandi ganbayanRes ol ut i ondat edJanuary21,2002shoul dbet hr eshedout .  Att heout s e t ,wewoul dl i ket os t r es st hat ,wear et r eat i ngt hi sc as easane xc ept i ont ot he g e ne r a lr ul eg o v e r ni ngpe t i t i o nsf o rc e r t i o r a r i .No r ma l l y ,de c i s i o nso ft heSa ndi g anb ay an a r e br oughtbef or et hi s CourtunderRul e 45,notRul e 65.Butwher et he c asei s undeni abl y i ngrai ned wi t hi mmense publ i ci nt er es t ,publ i c pol i cy and deep hi st or i c al r eperc uss i ons, c e r t i o r a r ii sa l l o we dno t wi t hs t a ndi ngt h eex i s t e nc ea nda vai l ab i l i t yoft her e me dyo fappe al . Oneoft hef or emos tc oncer nsoft heAqui noGov er nmenti nFebruary1986wast here c ove ry oft he unexpl ai ned ori l l got t en weal t hr eput edl y amass ed by f or merPr es i dentand Mr s. Ferdi nand E.Marcos ,t hei rrel ati ves,f ri ends and busi nessass oci ates .Thus,t he very firs t Exec ut i veOr der( EO)i ss uedbyt henPr es i dentCor azonAqui nouponherass umpt i ont ooffic e af t ert heoust eroft heMarc os eswasEO No.1,i ss ued on February28,1986.I tc r eat edt he Pr esi dent i alCommi ss i ononGoodGover nment( PCGG)andcharge di twi t hthet askofassi st i ng t he Pr esi denti nt he “ r ec over y ofal li l l got t en weal t h acc umul at ed by f ormer Pr esi dent Fer di nand E.Marc os,hi si mmedi at ef ami l y,re l at i ves ,s ubordi nat es and c l ose ass oc i at es, whet herl ocat ed i nt hePhi l i ppi nesorabroad,i ncl udi ngt het akeoverorsequest rat i on ofal l busi nessent er pri se s and ent i t i es owned orcont ro l l ed by t hem dur i ng hi s admi ni st r at i on, di rec t l yort hroughnomi nees,byt aki ngundueadvant ageoft hei rpubl i cofficeand/ orusi ngthei r po we r s ,a ut ho r i t y ,i nflue nc e ,c o nne c t i o nso rr e l a t i o ns hi p. ”Theur g e nc yo ft hi sunde r t a ki ngwa s t e r s e l yde s c r i b edb yt hi sCo ur ti n e :  R publ i cv s .Lobr e g at 20

21

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surel yxxxan enter pri se“ ofgreatpi t h andmoment ” ;i twasatt endedby“ greatexpect at i ons” ;i twas i ni t i atednotonl y outofc onsi derat i onsofsi mpl ej ust i cebutal sooutofsheerneces si t y—t henati onal cofferswereempty ,ornear l yso.

I nal lt heal l egedi l l got t enweal t hcasesfil edbyt hePCGG,t hi sCourthasseenfitt osetasi de t e c h ni c a l i t i e sa nd f o r ma l i t i e st ha tme r e l ys e r v et ode l a yo ri mpe dej udi c i o usr e s o l ut i o n.Thi s Courtpref erst ohavesuc hcasesres ol vedont hemeri t satt heSandi gan_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 20  F i l o t e o,Jr .v s .Sandi ganbav an,   263SCRA222[ 1996] ) . 21

Ce n t r a lBa nkv s . Cl o r i b e l ,   44SCRA307,314[ 1972] .

  240SCRA376[ 1995] .

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SUPREME COURT REPORTS ANNOTATED  Republic vs. Sandiganbayan

bayan.Butsubst ant i alj ust i cetothe Fi l i pi nopeopl eand t oal lpart i esconcer ned,notmer e l egal i smsorperf ec t i on off orm,shoul d now be r el ent l es sl y and firml y pur sued.Al mos tt wo

decadeshavepass ed si ncet hegovernmenti ni t i at ed i t ssearch f orand re vers i on ofs uc hi l l g o t t e nwe a l t h.Thede fini t i v er e s o l ut i o no fs uc hc a s e so nt heme r i t si st husl o ngo v e r d ue .I ft he r e i spr o o fo fi l l e gala c qui s i t i o n,ac c umul at i o n,mi s appr o pr i at i o n,f r a udo ri l l i c i tc o nduc t ,l e ti tbe broughtoutnow.Lett heowner shi poft hes ef undsandot herass et sbefinal l ydet ermi nedand r e s o l v e dwi t hdi s p at c h ,f r e ef r o ma l lt hede l a y i ngt e c hni c a l i t i e sanda nno y i ngpr o c e dur a ls i de t r a c k s . Wet hust a kec o g ni z a nc eo ft hi sc a s eands e t t l ewi t hfina l i t ya l lt hei s s u est he r e i n. 23

 I SSUESBEFORETHI SCOURT

Thecruci ali ss ueswhi cht hi sCourtmustres ol veare:( 1)whet herornotr espondent sr ai sedany genui nei ss ueoff actwhi c hwoul dei t herj ust i f yornegat esummaryj udgment ;and( 2)whet her o rno tpe t i t i o ne rRe publ i cwasa bl et op r o v ei t sc a s ef o rf o r f e i t ur ei nac c o r danc ewi t hSe c t i o ns2 and3ofRA1379. ( 1 )ThePr opr i e t yofSummaryJudgme nt

Wehol dt hatres pondentMarc osesf ai l edt orai seanygenui nei ss ueoff acti nt hei rpl eadi ngs. Thus,onmot i on ofpet i t i onerRepubl i c ,s ummaryj udgments houl dt akepl aceasa mat t erof r i ght . I nt heea r l yc a s eo f uman v ,  s ummar yj udgmentwasde s c r i be dasaj udgment  A s .Es t e nz o whi c hacourtmayre nderbef oret ri albutaf t erbot hpart i eshavepl eaded.I ti sorderedbyt he c ourtupon appl i c at i on byonepart y,support edbyaffidavi t s,deposi t i onsorot herdoc ument s, wi t h not i c e upon t he adver s e part y who may i nt urn fil e an oppos i t i on s upport ed al s o by affidavi t s,deposi t i onsorot herdocument s.Thi si saf t ert hecourtsummari l yhearsbot hpart i es wi t ht hei rr es pect i veproof sandfindst hatt her ei snogenui nei ss uebet weent hem.Summary  j udgmenti ss anc t i oned i nt hi sj ur i s di c t i on bySec t i on 1,Rul e35 oft he1997 Rul esofCi vi l Pr oc edur e: 24

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 23  R e publ i cv s .Sandi ganhay an,   269SCRA316[ 1997] ) .

  69SCRA524[ 1976] .

24

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Summar yj udgme ntf orc l ai mant SECTI ON 1. . —A part yseeki ngt orec overuponacl ai m,count erc l ai m,or cr osscl ai m ort oobtai n adecl arator yrel i efmay,atanyt i me,af t ert hepl eadi ngi n answert heret ohas beense rve d,movewi t hsuppor t i ngaffidavi t s,deposi t i onsoradmi ss i onsf orasummaryj udgmenti nhi s f a v o rupo na l lo ra nypa r tt he r e o f . 25

Summaryj udgmenti sproperwhent her ei sc l earl ynogenui nei ss ueast oanymat er i alf acti n t he a c t i o n.The t heor y ofs ummar yj udgmenti st hat ,al t hough an answermayon i t sf ac e appear t ot ender i ss ues requi ri ng t ri al ,i fi ti s demonst rat ed by affidavi t s,deposi t i ons or 26

admi ss i onst hatt hosei ss uesarenotgenui nebuts ham orfict i t i ous,t heCourti sj ust i fiedi n di spensi ngwi t ht het ri alandrenderi ngsummaryj udgmentf orpet i t i onerRepubl i c. TheSo l i c i t o rGe ne r a lma deav e r yt ho r o ug hpr e s e n t a t i o no fi t sc a s ef o rf o r f e i t ur e : xxx 4.Res pondentFer di nandE.Marc os( now dece asedandr epre se nt edbyhi sEst at e/ Hei r s)wasapubl i c offic erf orseve r aldecades c onti nuousl y and wi t houti nt er rupt i on as Congr es sman,Senat or ,Senat e Pre si dentand Pre si dentoft heRepubl i coft hePhi l i ppi nesf ro m Dec ember31,1965upt ohi soust erby di re ctact i onoft hepeopl eofEDSAonFebruary2225,1986. 5.Res pondentI mel daRomual dezMarc os( I mel da,f ors hort )t hef or merFi r s tLadywhor ul edwi t hFM duri ngt he14yearmart i all aw r egi me,oc cupi edtheposi t i onofMi ni st erofHumanSet t l ement sf ro m June 1976upt ot hepeacef ulre vol ut i oni nFebruary2225,1986.Shel i kewi ses erve donceasamemberoft he I nte r i m Bat asangPambansadur i ngt heear l yyear so fmart i all aw f r om 1978t o1984andasMet r oMani l a Gover nori nconcurr entcapaci t yasMi ni st ero fHumanSet t l ement s,xxx xxx xxx xxx 11.Att heout se t ,however ,i tmustbepoi nt edoutt hatbasedont heOffic i alReportoft heMi ni st erof Budget ,t het ot alsal ari esoff ormerPre si dentMarc osasPre si dentf r om 1966t o1976wasP60, 000ayear and f r om 1977 t o1985,P100, 000 a year ;whi l et hatoft he f or merFi r stLady,I mel da R.Marc os ,as Mi ni st erofHumanSet t l ement sf r om June1976toFebruary2225,1986wasP75, 000ayearxxx. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Sub s t a nt i a l l yt h es a mea sSe c t i o n1 ,Rul e3 4o ft heo l dRul e so fCo ur t .  Agc anasv s .Nagum,   L20707,143Phi l177;32SCRA298[ 1970] . 25

26

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 ANALYSI SOFRESPONDENTS  LEGI TI MATEI NCOME

xxx 1.12. Basedon avai l abl edoc uments ,t heI TRsoft heMarc os esf ort heyears19651975wer efil ed underTaxI dent i ficat i onNo.13650551.Fort heyears1976unt i l1984,t heret urnswerefil ed underTaxIdent i fic at i onNo.M 6221J1117A9. 2.13. Thedat aco nt ai nedi nt heI TRsandBal anc eSheetfil edbyt he“ Marc os esaresummari ze dand a t t a c he dt ot h er e p o r t si nt hef o l l o wi ngs c he dul e s :

Sch!"# A$ Sch!"# %& '(c%) *A((+ T- h%&/ Sch!"# $ Sch!"# %& '(c%) T+ P! *A((+ T1h%&/ Sch!"# C$ Sch!"# %& N D%# '(c%) *A((+ T2-

h%&/ Sch!"# D$ Sch!"# %& N%h A(#: *A((+ T3h%&/.  P 408, 442. 00or 1.14. Assummar i ze di n Sc hedul eA ( Annex“T”her eo f ) ,t he Mar c os esr epor t ed 16, US$2, 414, 484. 91 i nt ot ali nc omeoveraperi odof20year sf r om 1965 t o1984.Thesourc esof i ncomeareasf ol l ows:

O&&c# S# L<# Pcc =) '(c%) Oh T%#

P2,627,581.00 11,109,836.00 149,700.00 2,521,325.00 P16,408,442.00

16.01; 67.71; .91; 15.37; 100.00;

15.FM’ soffic i alsal aryper t ai nst ohi sco mpensat i onasSenatePr es i denti n1965i nt heamountof P15, 935. 00andP1, 420, 000, 00asPres i dentoft hePhi l i ppi nesduri ngt heper i od1966unt i l1984.On t heot herhand,I mel dare port edsal ari esandal l owancesonl yf ort heyears1979t o1984i nt heamount ofP1, 191, 646. 00,The r ec or ds i ndi c at et hatt he r eport ed i nc ome c ame f r om hersal ary f r om t he Mi ni s t r yofHumanSet t l ement sandal l owanc esf r om Foo dTer mi nal ,I nc. ,Nat i onalHomeMor t gage Fi nanc e Cor por at i on,Nat i onalFood Aut hor i t y Counc i l ,Li ghtRai lTr ansi tAut hor i t y and Home De ve l opmentMut ualFund. 16.Oft heP11, 109, 836. 00i nr eport edi nco mef ro ml egalpr act i ce,t heamountofP10, 649, 836. 00 or 96% repres ent s“ rec ei vabl esf rom pri oryears ”duri ngt heperi od1967upto1984. 223

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17. I nt hegui seofr eport i ngi nc omeusi ngt hecashmet hodunderSec t i on38oft heNat i onal I nt er nalRe ve nue Code ,FM made i tappeart hathe had an e xt r emel y pr ofit abl el eg al prac t i c ebef or ehebec amea Pr es i dent( FM bei ngbarr ed by l aw f r om prac t i c i ng hi sl aw pr o f e s s i o ndur i nghi se nt i r epr e s i de nc y )andt hat ,i nc r e di b l y ,hewass t i l lr e c e i v i ngpa yme nt s al mos t20yearsaf t er .Theonl yprobl em i st hati nhi sBal anc eSheetat t achedt ohi s1965 I TR i mmedi at el y pr ec ee di ng hi s as c endanc yt ot he pr es i denc y he di d notsho w any Re c e i v ab l e sf r o mc l i e nta ta l l ,muc hl e s st heP1 0. 6 5Mt ha thede c i de dt ol a t e rr e c o g ni z eas i ncome.Therearenodocument sshowi nganywi t hhol di ngtaxcer t i ficat es.Li kewi se,t herei s not hi ngonr ec or dt hatwi l lshow anyknownMarc osc l i entashehasnoknownl aw offic e.As pre vi ousl yst ated,hi snet wort hwasamereP120, 000. 00i nDecember ,1965.Thej oi nti ncome t a xr e t ur nso fFM andI me l dac a nno t ,t he r e f o r e ,c o nc e a lt hes ke l e t o nso ft he i rkl e pt o c r a c y .

18. FM r epor t ed a t ot alo fP2, 521, 325. 00 asOt herI nco mef ort he year s1972 up t o1976 whi c h her ef err ed t oi n hi sre t urn as“ Mi sc el l aneousI t ems”and “ Vari ousCor porat i ons. ” The r ei snoi ndi c a t i o no fa nypa y o ro ft hedi v i de ndso re a r ni ng s . 19. Spous esFer di nand and I mel da di d notdec l ar e any i nco me f r om any depo s i t s and pl ac ement swhi c h ares ubj ec tt oa 5% wi t hhol di ngt ax.TheBur eau ofI nt er nalReve nue a t t e s t e dt ha taf t e radi l i g e nts e a r c ho fpe r t i ne ntr e c o r dso n fil ewi t ht heRe c o r d sDi v i s i o n, t heydi dnotfindanyrec or dsi nvol vi ngt het axt ransact i onsofspousesFerdi nandandI mel da i nReve nueRegi onNo.1,Bagui oCi t y ,Reve nueRegi onNo. 4A,Mani l a,Rev enueRegi onNo. 4B1,Quez onCi t yandReve nueNo.8,Tacl oban,Leyt e.Li kewi se ,t heOffic eoft heReve nue Col l ect orofBatac.Furt her ,BI R att est edt hatnorecor dsweref oundonanyfil i ngofcapi t al gai nst axre t urni nvol vi ngspouse sFM andImel dac over i ngt heyears1960t o1965. 20. I n Schedul e B, t he t axabl er epo r t ed i nco me o ve rt he t went yye ar per i od was P14, 463, 595. 00whi c hr epres ent s88% oft hegros si nco me.TheMarc ose spai di nc omet axes t ot al i ng P8, 233, 296. 00 or US$1, 220, 667. 59.The bus i ness ex penses i nt he amount of P861, 748. 00 re pres ent expenses i nc urr ed f or subsc ri pt i on, post age, s t at i oner i es and contr i but i onswhi l et heot herdeduct i onsi nt heamountofP567, 097. 00repres ent si nt er est c harge s,medi c are f ees ,t axes and l i c enses . The t ot al deduc t i ons i nt he amount of P1, 994, 845. 00repres ent s12% oft heto t algrossi ncome. 21. I n Sc hedul e C,t he netc umul at i ve di spos abl ei nc ome amount st o P6, 756, 301. 00 or US$980, 709. 77.Thi si st heamountt hatrepres ent st hatport i onoft heMarc osesi ncomet hat i sf reef orc onsumpti on,savi ngsandi nvest ment s.Theamounti sarr i vedatbyaddi ngbackt o t heneti ncomeaf t ert axt hepers onalandaddi t i onalexempt i onsf ort heyears19651984,as we l la st het a xe x e mp ts a l a r yo ft hePr e s i de ntf o rt hey e ar s19 66unt i l1 972 . 224

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22. Fi nal l y,t he net wort h anal ysi si n Sc hedul e D,re prese nt sthe t ot alacc umul ate d net wort h of spouses ,Fer di nandandI mel da.Respondent ’ sBal anceSheetat t achedt ot hei r1965I TR,co ver i ngthe yeari mmedi at el y prec edi ng t hei rasc endancytothe presi dency ,i ndi cat esan endi ng net wort h of P120, 000. 00whi c hFM decl aredasLi braryandMi sc el l aneousasset s.I nco mput i ngf ort henet wort h, t he i nc ome appr oac h was ut i l i zed.Under t hi s appr oac h,t he begi nni ng c api t ali si nc r ease d or decr ease d,ast hecasemaybe,dependi ngupon t he i nc omeear nedorl os si nc ur r ed.Comput at i ons est abl i sht het ot alnet wort hofspousesFerdi nandandI mel da,f ort heyears1965unt i l1984i nt he 487. 75,a t ot alamountofUS$957, ssumi ngthei ncomef rom l egalpract i cei sr ealandval i dxxx. TS G.THESECRETMARCOSDEPOSI  I N SWI SSBANKS

23. Thef ol l owi ngpres ent ati onver ycl earl yandover whel mi ngl yshow i ndet ai lhow bot hre spondent s cl andest i nel yst ashedawayt hecount ry’ sweal t ht oSwi t zer l andandhi dt hesameunderl ayer supon l ayer s of f oundati ons and ot her c or por at e ent i t i es t o pre vent i t s det ec t i on. Through t hei r dummi es/ nomi nees,f rontsoragent swhof ormedthosef oundati onsorcor porat eent i t i es,t heyopened andmai nt ai nednumerousbankaccount s.Butduet ot hedi fficul t yi fnott hei mpossi bi l i t yofdetec t i ng anddocument i ngal lt hosesec re taccount saswel last heenormi t yoft hedeposi t st herei nhi dden,t he f ol l owi ng pres ent at i on i sconfined t o fivei dent i fied acc ount sgro ups,wi t h bal ance samount i ng t o about$356M wi t h a res ervat i on f ort hefil i ngofasuppl ement alorseparat ef orf ei t urecompl ai nt shoul dtheneedari se. OVERSOVI BUR H.THEAZI  FOUNDATI ON ACCOUNTS

24. OnJune11,1971,Fer di nandMarc osi ss uedawri t t enor dert oDr .TheoBert heau,l egalco unselof Sc hwei ze r es c he Kr edi t ans t al tor SKA,al s o known as Swi s s Cr edi tBank,f orhi m t o es t abl i s h  A O Fo undat i o n. th e ZI   Ont hesamedat e,Marc osex ec ut edapowerofat t or neyi nf avoro fRober t oS. Benedi ct oempoweri nghi mt ot ransactbusi nessi nbehal foft hesai df oundati on.Purs uantt ot hesai d Mar c osmandat e,AZIO Foundat i onwasf or medonJune21,1971i nVaduz.Wal t erFess l erandEr nst Sc hel l er ,al s o ofSKA LegalServi c e,and Dr .Hel mut h Mer l i ng f r om Sc haan wer e des i gnat ed as  fi s t member s of t he Boar d ofTr ust ee s of t he s ai df oundat i on.Fer di nand Mar c os was name dr b e n e fi c i a r y andt heMarc osFoundat i on,I nc .wasse c ondbeneficiary .OnNov ember12,1971,FM agai n i ss uedanot herwri t t enor dernami ngAust r ahi lPTYLt d.I nSydney ,Aust r al i a,as 225

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t hef oundat i on’ sfirs tandsol ebenefici ary.Thi swasrec ordedonDec ember14,1971. 25. I n an undat ed i ns t r ument ,Mar c osc hanged t he firs tand s ol ebenefici aryt oCHARI S FOUNDATI ON.Thi sc hangewasr ec or dedo nDec ember4,1972. 26. OnAugus t29 ,1978,t heAZI O FOUNDATI ON wasr enamedt oVERSO FOUNDATI ON. The Boar d ofTr us t ee sr emai nedt he s ame.On Mar c h 11,1981,Mar c osi s s ued awr i t t en di r ec t i vet ol i qui dat eVERSO FOUNDATI ON and t ot r ansf eral li t sass et st oac c ounto f FI DESTRUSTCOMPANYatBankHof mani nZur i c hundert heac c ount“ Ref er enc eOSER. ” TheBoardofTrust eesdeci dedt odi ss ol vet hef oundati ononJune25,1981. 27. I nan apparentmaneuvert oburyf urt hert hesec re tdeposi t sbeneat ht het hi c kl ayerso f c or por at ee nt i t i es ,FM effec t edt hees t abl i s hmentofVI BURFOUNDATI ON onMay13,1981 i nVaduz.At t y .I voBec kandLi magManagement ,awhol l yownedsubsi di aryofFi desTrust , wer edes i gnat edasmember soft heBoar d ofTrust ees .Theacc ountwasoffic i al l yopened wi t hSKA onSept ember10,1981.Thebenefic i alo wnerwasno tmadekno wnt ot hebank si nc eFi desTrustCompany act ed asfiduc i ary .However ,c ompari son oft hel i st i ng oft he

se c ur i t i esi nt hesaf edeposi tr egi st eroft heVERSO FOUNDATI ON asofFebruary27,1981 wi t ht hatofVI BUR FOUNDATI ON asofDec ember31,1981r eadi l yre ve al st hatexac t l yt he s a mes e c ur i t i e swe r el i s t e d. 28. Undert hef or ego i ng c i r c ums t anc es ,i ti sc er t ai nt hatt heVI BUR FOUNDATI ON i st he be nefic i als uc c es s orofVERSO FOUNDATI ON. 29. OnMarc h18,1986,t heMarc os desi gnat edBoardofTrust eesdeci dedt ol i qui dat eVI BUR FOUNDATI ON.A not i c eofsuc hl i qui dat i onwass entt ot heOffic eoft hePubl i cRegi s t eron Marc h 21,1986.Howev er ,t hebank acc ount sand r es pec t i vebal anc esoft hesai d VI BUR FOUNDATI ON r emai ned wi t h SKA  A . ppar e nt l y ,t hel i qui dat i o n wasan at t e mptby t he  Mar c o s e st ot r ans f e rt hef o undat i on’ sf undst oano t he rac c o unto rbankbutt hi swaspr e v e nt e d One oft he l at es tdoc ument s b yt het i me l yf r e e z eo r de ri s s ue db yt heSwi s saut ho r i t i e s . obt ai nedbyt hePCGG f r om t heSwi ssaut hor i t i esi sadecl arat i on si gnedbyDr .I voBec k ( t het r us t e e )s t at i ng t ha tt hebe ne fic i alo wne ro fVI BUR FOUNDATI ON i sFe r di nand E.  Mar c o s .Anot herdoc uments i gnedbyG.Rabe rofSKA s howst hatVI BUR FOUNDATI ON i s ownedbyt he“ Marc osFami l i e” . 1.3 0.so  A fDe c e mbe r31,1989,t hebal anc eoft hebankac c o unt sofVI BUR FOUNDATI ON wi t hSKA,Zur i c h,unde rt heGe n e r alAc c o untNo .4 69 85 7t o t al e d$3 , 5 97 , 5 44 . 0 0. 226

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 X WI NTROP:CHARI SSCOLARI I . ANDYVALAMOSPI NUSAVERTI NA  FOUNDATI ON ACCOUNTS

31. Thi si st hemosti nt ri cat eandc ompl i cat edacc ountgr oup.Ast heFl ow Charthere ofshows,t wo( 2) groupsundert he f oundati on or gani ze d byMarc osdummi es / nomi neesf orFM’ sbenefit,eve nt ual l y  j oi ned t oge t herand bec ame one ( 1)ac c ountgr oup undert he AVERTI NA FOUNDATI ON f ort he benefitofbot hFM andImel da.Thi si st hebi ggestgroupf ro m wher et he$50Mi nvest mentf undoft he Marc os eswasdrawn whent heyboughtt heCent r alBank’ sdol l ar denomi nat edtr easurynot eswi t h hi ghyi e l di ngi nt e r e s t s . 32. On Marc h 20,1968,af t erhi ssec ond yeari nt hepr es i denc y,Marc osopened bankacc ount swi t h  p e udo ny m WI LLI AM SAUNDERS,a SKA usi nganal i aso rs ppa r e nt l yt ohi dehi st r uei de nt i t y .The nextday,Marc h21,1968,hi sFi rs tLady,Mr s.I mel daMarc osal soo penedherownbankacc ount swi t h t he s ame bank usi ng an Amer i c ans oundi ng al i as ,JANE RYAN.Found among t he vo l umi nous document si nMal acañangshort l yaf t ert heyfledt oHawai ii nhast et hatf at ef ulni ghto fFebruary25, 1986,wer e acc ompl i shed f or ms f or“ Dec l arat i on/ Speci men Si gnat ur es ”submi t t ed by t he Marc os coupl e.Undert hecapti on “ si gnat ur e( s) ”Ferdi nand and I mel da si gnedt hei rre alnamesaswel las t hei rres pect i veal i asesunderneat h.Theseacc ount swer eact i vel yoperat edand mai nt ai nedbyt he

Marc ose sf oraboutt wo( 2)y earsunt i lt hei rcl osuresomet i mei n February ,1970 andt hebal ances t r ans f er r edt oXANDYFOUNDATI ON. 33. TheXANDYFOUNDATI ON wase s t abl i s hedonMar c h3,1970i nVaduz,C. W.Fes s l er ,C.Souvi r on andE.Sc hel l erwer enamedasmembersoft heBoar dofTrust ees . 34. FM andImel dai ss uedt hewr i t t enmandat et oes t abl i sht hef oundat i ont oMar kusGeelofSKA on Marc h3,1970.I nt hehandwr i t t enRegul at i onssi gnedbyt heMarc osco upl easwel lasi nt hetypewr i t t enRegul at i onssi gnedbyMar kusGeelbot hdate dFebr uary13,1970,t heMarc oss pouse swer e namedt hefirs tbenefici ari es,t hesurvi vi ngspouseast hesec ondbenefici aryandt heMarc osc hi l dren —I mee,Fer di nand,Jr .( Bongbong)andIr ene—asequalt hi rdbenefic i ari es. 35. TheXANDY FOUNDATI ON wasr enamed WI NTROP FOUNDATI ON on Augus t29,1978.The Boar d ofTr ust ee sre mai ned t he s ameatt he out s et .Howev er ,on Mar c h 27,1980,Souvi r on was re pl acedbyDr .Pet erRi t t er .OnMarc h10,1981,Fer di nandandImel daMarc osi ss uedawri t t enor der t otheBoardofWi nt ro pt ol i qui dat ethef oundat i onandt ransf eral li t sasset st oBankHof manni n Zuri c hi nf av orofFI DESTRUSTCOMPANY.Lat er ,WI NTROPFOUNDATI ON wasdi s s ol ved. 36. TheAVERTI NAFOUNDATI ON wases t abl i s hedonMay13 ,1981i nVaduzwi t hAt t y .I voBec kand Li magManagement ,awhol l y227

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o wned s ubsi di ar y ofFI DES TRUST CO. ,asmembe r soft he Boar d ofTr ust ee s .Two( 2) ac c ountc at eg or i es ,namel y:CAR and NES,wer e ope ned on Sept ember10,1981.The be nefic i alo wnerofAVERTI NA wasno tmadeknownt ot hebanks i nc et heFI DESTRUST CO.act ed as fiduc i ary .However ,t he sec ur i t i es l i s t ed i nt he saf e deposi tr egi st er of WI NTROP FOUNDATI ON Cat ego r yR asofDec embe r31,1980wer et hes ameast hos e l i s t edi nt her egi s t erofAVERTI NA FOUNDATI ON Cat ego r yCAR asofDec ember31,1981. Li kewi s e,t hesec ur i t i esl i s t ed i nt hesaf edepos i tr egi s t erofWI NTROP FOUNDATI ON CategorySasofDecember31,1980weret hesameast hosel i st edi nt heregi st erofAvert i na Cat egor yNES asofDec ember31,1981.Undert hec i r c ums t anc es ,i ti scer t ai nt hatt he bene fic i al s uc c es s or of WI NTROP FOUNDATI ON i s AVERTI NA FOUNDATI ON.The bal anc eofCat ego r yCAR asofDec ember31,1989 amount edt oUS$231, 366, 894. 00whi l e t hatofCat egoryNESasof123183wasUS$8, 647, 190. 00.Lat es tdocument sr ec ei vedf r om Swi ssaut hor i t i esi ncl uded a decl arat i on si gned by I VO Bec k st at i ng t hatt hebenefic i al o wner sofAVERTI NA FOUNDATI ON ar eFM andI mel da.Anot herdo c uments i gne dbyG. Rabero fSKAi ndi c at est hatAver t i naFoundat i oni sownedbyt he“ Marc osFami l i es. ” 37. Theot hergroupsoff oundat i onst hatevent ual l yj oi nedAVERTI NA wer eal soes t abl i shed byFM t hr oughhi sdummi es ,whi c hst ar t edwi t ht heCHARI SFOUNDATI ON.

38. TheCHARI S FOUNDATI ON wases t abl i s hedi nVADUZonDec embe r27 ,1971.Wal t er Fess l erandErnstSc hel l ero fSKA andDr .Pet erRi t t erwer enamedasdi r ec t or s.Dr .Theo Bert heau,SKA l egalc ounse l ,act edasf oundi ngdi r ec t ori n behal fofFM byvi rt ueoft he mandat e and agr eement dat ed No vembe r 12,1971.FM hi ms el fwas named t he fir s t benefic i aryandXandyFoundat i onass ec ondbenefici aryi nacc or dancewi t hthehandwr i t t en i ns t ruc t i onsofFM onNov ember12,1971andt heRegul at i ons.FM gaveapowerofat t or ney t oRobert oS.Benedi ct oon February15,1972 t oac ti n hi sbehal fwi t hr egardt oChari s Foundat i on. 39. On Dec ember13,1974,Char i sFoundat i on wasr enamed Sc ol ar iFoundat i on butt he di r ec t or sr emai ned t hes ame.On Mar c h 11,1981 FM or der edi n wr i t i ngt hatt heVal amo Foundat i onbel i qui dat edandal li t sasse t sbet r ansf er re dt oBankHof mann,AG i nf avorof Fi desTrustCompanyundert heacc ount“ Ref er enceOMAL. ”TheBoar dofDi r ec t or sdec i ded onthei mmedi at edi ss ol ut i onofVal amoFoundat i ononJune25,1981. 40. TheSPI NUS FOUNDATI ON wases t abl i s hedonMay13,1981i n Vaduzwi t hAt t y .I vo Bec kandLi magManagement ,awhol l yo wneds ubs i di aryofFi desTr us tCo. ,asmember sof t he Foundat i on’ s Boar d ofDi r ec t or s .The ac c ountwas offic i al l y opened wi t h SKA on Sept ember10,1981.Thebenefic i alowneroft hef oundat i onwasnotmadeknownt ot hebank s i nc eFi de sTr us tCo .ac t e da sfiduc i ar y .Ho we v e r ,t hel i s to fs e c ur i 228

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t i esi nt he saf e deposi tr egi s t erofVal amo Foundat i on as ofDec ember31,1980 are pr a c t i c a l l yt hes amewi t ht ho s el i s t e di nt hes af ede po s i tr e g i s t e ro fSpi nusFo unda t i o na so f December31,1981.Undert heci rc umst ances ,i ti sc ert ai nt hatt heSpi nusFoundat i oni st he benefici alsucces soroft heVal amoFoundat i on. 41. OnSept ember6,1982,t her ewasawr i t t eni ns t ruct i onf r om Spi nusFoundat i ontoSKAt o c l os ei t s Swi ss Fr anc acc ount and t r ansf er t he bal anc et o Aver t i na Foundat i on. I n Jul y/ Augus t ,1982,se ver alt r ansf er sf r om t hef oundat i on’ sGer man mar ksand US dol l ar acc ount swer emadet oAver t i naCat egor yCAR t ot al i ngDM 29. 5M and$58M,r es pec t i vel y . Moreo ver ,acompari sonoft hel i stofsec uri t i esoft heSpi nusFoundat i onasofFebruary3, 1982wi t ht hesaf edeposi tsl i psoft heAver t i naFoundat i onCat egoryCAR asofAugust19, 19 82s ho wst ha ta l lt hes e c ur i t i e so fSpi nuswe r et r a ns f e r r e dt oAv e r t i na . J.TRI NI DADRAYBYPALMY  FOUNDATI ON ACCOUNTS

42. TheTr i ni dadFoundat i onwasor gani zedonAugus t26,1970i nVaduzwi t hC. W.Fes sl er andE.Sc hel l erofSKA andDr .Ot t oTonduryast hef oundat i on’ sdi rec t ors .I mel dai ss ueda wr i t t en mandat et o es t abl i s ht he f oundat i on t o Mar kusGee lon Augus t26,1970.The re gul at i onsaswel last heagree ment ,bot hdat edAugus t28,1970wer el i kewi sesi gnedby I mel da.I mel dawasnamedt hefir s tbenefici aryandherc hi l dre nI mel da( I mee) ,Fer di nand, Jr .( Bongbong)and,I r enewer enamedasequalse co ndbenefici ari es . 43. RaybyFoundat i onwasest abl i shedonJune22,1973i nVaduzwi t hFes sl er ,Sc hel l erand Ri t t erasmembersoft heboardofdi r ec t or s.I mel dai ss uedawr i t t enmandat et oDr .Theo Be r t he aut oe s t a bl i s ht hef o unda t i o nwi t hano t et h att hef o unda t i o n’ sc a pi t a l i z a t i o na swe l l a st hec o s to fe s t a bl i s hi ngi tb ede bi t e dag ai ns tt heac c o unto fTr i ni da dFo unda t i o n.I me l da was named t he firs tand onl y benefici ary ofRayby f oundat i on. Ac c or di ng t o wr i t t en i nf or mat i on f r om SKA dat edNov ember28,1988,I mel da appare nt l yhad t hei nt ent i on i n 1973t ot ransf erpartoft heasset sofTri ni dadFoundati ont oanot herf oundat i on,t hust he est abl i shmentofRaybyFoundati on.However ,t ransf erofasset snevert ookpl ace.OnMarc h 10,1981,I mel da i ss uedawri t t en ordert otr ansf eral lt heass et sofRayby Foundat i on t o Tri ni dadFoundat i onandt osubsequent l yl i qui dat eRayby.Ont hesamedat e,shei ss ueda wr i t t e no r de rt ot hebo ar dofTr i ni dadt odi s s o l v et hef o unda t i o nandt r a ns f e ra l li t sas s e t st o BankHof manni nf avorofFi desTrustCo.Undert heac c ount“ Ref er enceDi do, ”Raybywas di ss ol vedonApri l6,1981andTri ni dadwasl i qui datedonAugust3,1981. 44. ThePALMYFOUNDATI ON wases t abl i s hedonMay13,1981i nVaduzwi t hDr .I voBec k andLi magManagement ,awhol l yownedsubsi di aryofFi desTr us tCo,asmember soft he Foundat i on’ sBoardof 229

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Di r ec t or s .Theacc ountwasoffic i al l y opened wi t ht he SKA on Sept ember10,1981.The benefici alownerwasnotmadeknownt ot hebanksi nc eFi desTrustCo.act edasfiduc i ary . Ho we v e r ,whe no nec o mpa r e st h el i s t i ngo fs e c u r i t i e si nt hes af ede po s i tr e g i s t e ro fTr i ni da d Foundat i onaso fDec ember31,1980wi t ht hatoft hePal myFoundat i onasofDec ember31, 1980,o ne can c l ear l y se et hat pract i cal l yt he same se curi t i es wer el i st ed.Under t he ci rc umst anc es,i ti scert ai nt hatt hePal my Foundat i on i st hebenefici alsucc ess oroft he Tri ni dadFoundat i on. 45. AsofDec ember31,1989,t heendi ngbal anc eoft hebankac c ount sofPal myFoundat i on underGener alAcc ountNo.391528i s$17, 214, 432. 00.

46. Lates tdocument srec ei vedf rom Swi ssAut hori t i esi ncl uded adecl arat i onsi gnedbyDr . I voBec kst at i ngt hatt hebenefic i alownero fPal myFoundat i oni sI mel da.Anot herdoc ument si gnedbyRabers howst hatt hes ai dPal myFoundat i oni sownedby“ Marc osFami l i e. ” K . OSALYS R AGUAMI NA  FOUNDATI ON ACCOUNTS 47. Ros al ysFoundat i on wasest abl i shedi n 1971wi t h FM ast hebenefici ary .I t sArt i cl esof I nc or porat i onwasexe cut edonSept ember24,1971andi t sByLawsonOc t ober3,1971.Thi s f oundat i on mai nt ai ned s ev er alac c ount s wi t h Swi s s Bank Cor por at i on ( SBC)undert he gener alacc ount51960wher emos toft hebri bemoni esf ro m Japanes esuppl i er swer ehi dden. 48. On Dec ember 19,1985,Ros al ys Foundat i on was l i qui dat ed and al li t s as se t s wer e t r ansf er r ed t o Aguami na Cor por at i on’ s( Panama) Ac c ount No.53300 wi t h SBC.The o wner s hi p by Aguami na Cor por at i on ofAc c ountNo.53300 i se vi denc ed by an ope ni ng accountdocument sf rom t hebank.J.Chri st i nazandR. L.Ross i er ,Fi rs tVi cePres i dentand Seni orVi cePres i dent ,res pect i vel y,ofSBC,Genevai ss uedadecl arat i ondat edSeptember3, 1991st at i ngt hatt hebyl awsdat edOct ober3,1971gover ni ngRos al ysFoundat i onwast he samebyl aw appl i edt oAguami naCor por at i onAc c ountNo.53300.Theyf urt herc onfir med t hatnochangeofbenefici alownerwasi nvol vedwhi l etr ansf err i ngt heass et sofRosal yst o  Aguami na.Henc e,FM r emai nst hebenefic i ar yofAguami naCor por at i onAc c ountNo.53300.  AsofAugus t30,1991,t heendi ngbal anc eofAc c ountNo.53300amount edt o$80, 566, 483. 00. L . LERFOUNDATI  MA ON ACCOUNTS 49. Mal erwasfirs tcr eat edasanest abl i shment .A st atementofi t sr ul esandregul ati onswas f oundamongMal ac añangdoc ument s .I ts t at ed,amongot her s,t hat50% oft heCompany’ s as s e t swi l lbef o rs o l eandf ul l 230

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ri ghtdi sposalofFM and I mel da duri ngt hei rl i f et i me,whi c ht heremai ni ng50% wi l lbe di vi dedi nequalpart samongt hei rc hi l dren.Anot herMal acañangdoc umentdat edOc t ober 19,1968 and s i gned byFer di nand and I mel da per t ai nst ot he appoi nt mentofDr .Andr e Bar beyand Jean Loui sSuni erasat t or ney soft he c ompany and asadmi ni s t r at orand managerofal lasse t shel dbyt hecompany.TheMarc osc oupl e,al soment i onedi nt hesai d doc umentt hatt heyboughtt heMal erEs t abl i s hmentf r om SBC,Geneva.Ont hesamedat e, FM and I mel da i s s ued a l et t er addre s s ed t o Mal er Es t abl i s hment ,s t at i ng t hat al l i ns t ruct i onst obet r ansmi t t edwi t hr egardtoMal erwi l lbesi gnedwi t ht hewor d“ JOHN

LEWI S. ”Thi swor dwi l lhavet hesameval ueast hecoupl e’ sown per s onalsi gnat ur e.The l et t erwass i gnedbyFM andI mel dai nthei rsi gnat ure sandasJohnLewi s. 50. Mal erEs t abl i s hmento pened and mai nt ai ned bank ac c ount swi t h SBC,Gene va.The ope ni ng bank doc ument s wer es i gned by Dr .Bar be y and Mr .Sunni eras aut hor i zed s i g nat o r i e s . 51. On Nov ember17,1981,i tbe c amenec es sar yt ot r ansf or m Mal erEs t abl i shmenti nt oa f oundat i on.Li kewi s e,t heat t or neyswer ec hanged t oMi c haelAmaudruz,etal .Howev er , admi ni st r at i on oft he asse t s was l ef tt o SBC.The art i c l es ofi nc or porat i on ofMal er Foundat i onr egi st er edonNovember17,1981appeart obet hesameart i cl esappl i edt oMal er Est abl i shment .OnFebruary28,1984,Mal erFoundat i oncancel l edt hepowerofat t or neyf or t he managementofi t sass et si nf avo rofSBC and t r ans f er r ed s uch powert o Sust r ust I nvest mentCo. ,S. A. 52. AsofJune6,1991,t heendi ngbal anceofMal erFoundat i on’ sAcc ountNos .254, 508BT and 98, 929 NY amountSF 9, 083, 567 and SG 16, 195, 258,r es pec t i vel y ,f ora t ot alofSF 25, 278, 825. 00.GM onl yunt i lDec ember31,1980.Thi sac c ountwasopenedbyMal erwheni t wasst i l lanest abl i shmentwhi chwassubsequent l yt ransf ormedi nt oaf oundat i on. 53. Al lt hefive( 5)group acc ount si nt heoveral lflow c harthavea t ot albal anceofabout Thre eHundredFi f t ySi xMi l l i onDol l ars( $356, 000, 000. 00)asshownbyAnnex“ R5”here t o at t ac hed as i nt egr al par t her eof . xxx xxx. 27

Res pondent sI mel da R.Mar c os ,Mar i aI mel da M.Manot oc ,I r ene M.Ar anet a and Fe r di nandMa r c o s ,Jr . ,i nt he i rans we r ,s t at e dt hef o l l o wi ng : xxx xxx xxx 4.Res pondent sADMI Tparagraphs3and4oft hePet i t i on. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Ro l l o ,Vo l . I ,pp.2237 .

27

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5. Res pondent s spec i fic al l y deny par agr aph 5 oft he Pet i t i on i n sof ar as i tst at est hat summonsando t herc ourtpro c es s esmaybese r ve donRes pondentI mel daR.Mar c osatt he s t at edaddre s st he t r ut h oft he mat t erbei ng t hatRes pondentI mel da R.Mar c osmaybe se r ve dwi t hs ummonsandot herpr oc es s esatNo.10B BelAi rCondomi ni um 5022P.Burgo s St r ee t , Makat i , Me t r o Mani l a, and ADMI T t he r es t . xxx xxx xxx

10. Res pondent sADMI Tparagraph11oft hePet i t i on. 11. Res pondent s spec i fic al l y DENY paragraph 12 oft he Pet i t i on f orl ack ofknowl edge suffici entt of orm abel i efast othet ruthoft heal l egat i onsi nc eRespondent swerenotpri vy t ot het r ansac t i onsand t hatt heyc annotr ememberexac t l yt het rut h ast ot hemat t er s a l l e g e d . 12. Res pondent sspec i fic al l y DENY paragraph 13 oft hePet i t i on f orl ac k ofknowl edgeor i nf ormati on suffici entt of orm abel i efast ot het ruthoft heal l egat i on si nceRespondent s cannotr ememberwi t hexact i t udet heco nt ent soft heal l egedITRsandBal anceSheet . 13. Res pondent sspec i fic al l y DENY paragraph 14 oft hePet i t i on f orl ac k ofknowl edgeor i nf ormati on suffici entt of orm abel i efast ot het ruthoft heal l egat i on si nceRespondent s cannotrememberwi t hexact i t udet hec ont ent soft heal l egedI TRs. 14. Respondent sspeci fic al l y,DENY par agraph 15 oft hePet i t i on f orl ackofknowl edge or i nf ormati on suffici entt of orm abel i efast ot het ruthoft heal l egat i on si nceRespondent s cannotrememberwi t hexact i t udet hec ont ent soft heal l egedI TRs. 15. Res pondent sspec i fic al l y DENY paragraph 16 oft hePet i t i on f orl ac k ofknowl edgeor i nf ormati on suffici entt of orm abel i efast ot het ruthoft heal l egat i on si nceRespondent s cannotrememberwi t hexact i t udet hec ont ent soft heal l egedI TRs. 16. Respondent sspec i fic al l y DENY paragraph 17 oft he Pet i t i on i nsof ar as i tat t ri but es wi l l f uldupl i c i t yo nt hepa r to ft hel a t ePr e s i de ntMa r c o s ,f o rbe i ngf a l s e ,t hes a meb e i ng pur ec oncl usi onsbased on pur e assumpt i on and notal l egat i onsoff act ;and spec i fical l y DENYt heres tf orl ackofknowl edgeori nf ormat i onsuffici entt of orm abel i efast ot het ruth oft heal l egat i on si nceRespondent scannotr ememberwi t h exact i t udet heco nt ent soft he al l egedI TRsort heatt achment st here t o. 17. Res pondent sspec i fic al l y DENY paragraph 18 oft hePet i t i on f orl ac k ofknowl edgeor i nf ormati on suffici entt of orm abel i efast ot het ruthoft heal l egat i on si nceRespondent s cannotrememberwi t hexact i t udet hec ont ent soft heal l egedI TRs. 18. Res pondent sspec i fic al l y DENY paragraph 19 oft hePet i t i on f orl ac k ofknowl edgeor i nf ormati on suffici entt of orm abel i efast ot het ruthoft heal l egat i on si nceRespondent s cannotr ememberwi t hexact i t udet he 232

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c o nt e nt so ft heal l e g e dI TRsa ndt ha tt he yar eno tpr i v yt ot heac t i v i t i e so ft heBI R.

19. Res pondent sspec i fic al l y DENY paragraph 20 oft hePet i t i on f orl ac k ofknowl edgeor i nf ormati on suffici entt of orm abel i efast ot het ruthoft heal l egat i on si nceRespondent s cannotrememberwi t hexact i t udet hec ont ent soft heal l egedI TRs. 20. Res pondent sspec i fic al l y DENY paragraph 21 oft hePet i t i on f orl ac k ofknowl edgeor i nf ormati on suffici entt of orm abel i efast ot het ruthoft heal l egat i on si nceRespondent s cannotrememberwi t hexact i t udet hec ont ent soft heal l egedI TRs. 21. Res pondent sspec i fic al l yDENY paragraph 22 oft hePet i t i on f orl ackofknowl edgeor i nf ormati on suffici entt of orm abel i efast ot het ruthoft heal l egat i on si nceRespondent s cannotrememberwi t hexact i t udet hec ont ent soft heal l egedI TRs. 22. Res pondent s spec i fic al l y DENY paragraph 23 i ns of ar as i tal l egest hatRes pondent s cl andest i nel yst ashedt hec ount ry’ sweal t hi n Swi t zer l andandhi dt hesameunderl ayer s and l ayer s off oundat i on and c or porat e ent i t i es f or bei ng f al se,t he t rut h bei ng t hat Re s p onde nt sa f o r e s a i dpr o p e r t i e swe r el a wf ul l yac q ui r e d . 23. Respondent sspeci fical l y,DENY paragraphs24,25,26,27,28,29and30oft hePet i t i on f orl ack ofknowl edge ori nf or mat i on suffic i entt of or m a bel i efast ot he t rut h oft he a l l e g at i o ns i nc eRe s p onde nt swe r eno tpr i v yt ot het r a ns a c t i o nsr e g a r di ngt h ea l l e g e dAz i o  Ver s oVi bur Foundat i on ac c ount s ,exc eptt hatas t o Res pondentI mel da R.Mar c os s he speci fical l yrememberst hatt hef undsi nvol vedwerel awf ul l yacqui red. 24. Respondent ss peci fical l yDENYparagraphs31,32,33,34,35,36,37,38,39,40,and41of t hePe t i t i o nf o rl a c ko fkno wl e dg eori nf o r ma t i o ns uffic i e ntt of o r m ab e l i e fa st ot het r ut ho f t he al l egat i ons si nc e Res pondent s ar e notpri vy t ot he t r ansac t i ons and as t o suc h t r ansac t i on t heywer e pri vy t ot heycannotr ememberwi t h exac t i t ude t he same havi ng oc curr edal ongt i meago,exc eptt hatast oRespondentI mel da R.Marc osshespec i fic al l y rememberst hatt hef undsi nvol vedwerel awf ul l yacqui red. 25. Respondent sspeci fical l yDENYparagraphs42,43,44,45,and46,oft hePet i t i onf orl ack o fkno wl e dg eo ri nf o r ma t i o ns uffic i e ntt of o r m ab el i e fa st ot het r ut ho ft heal l e g at i o nss i nc e Respondent swerenotpri vyt ot het ransact i onsandast osuchtr ansact i ont heywer epri vyt o t heycannotr ememberwi t h exac t i t udet he samehavi ngoc c urr edal ong t i meago,exc ept t hatast oRespondentI mel daR.Marc oss hespeci fic al l yrememberst hatt hef undsi nvol ved we r el a wf ul l yac q ui r e d . 26. Respondent sspeci fical l yDENY par agr aphs49,50,51and52,oft hePet i t i onf orl ackof knowl edgeori nf ormati onsuffici entt of orm abel i efast ot het ruthoft heal l egat i onssi nce Respondent swerenotpri vyt ot het ransact i onsandast osuchtr ansact i ont heywer epri vyt o t heycannot

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r ememberwi t h exac t i t ude t hesamehavi ng oc c urr ed a l ong t i meago,ex c eptt hatast o Res pondentI mel da R.Mar c osshe s pec i fical l yr emember st hatt he f unds i nvol ve d wer e l a wf ul l yac q ui r e d. Upon c ar ef ulperusaloft hef or egoi ng,t heCourtfindst hatr es pondentMr s.Mar c osand t he Ma r c o sc h i l dr e ni ndub i t a bl yf a i l e dt ot e nde rg e nui nei s s u e si nt he i ra ns we rt ot h epe t i t i o nf o r f o r f e i t ur e .A g e nui nei s s u ei san i s s u eo ff a c twhi c hc a l l sf o rt h epr e s e nt a t i o no fe v i de nc eas di st i ngui shed f rom an i ss uewhi c hi sfict i t i ousand co nt ri ved,s etup i n bad f ai t h orpatent l y l a c ki ngi ns ub s t a nc es oasno tt oc o ns t i t ut eag e nui nei s s u ef o rt r i a l .Re s p o nde nt s ’de f e ns e so f “ l ac ko fkno wl e dg ef o rl ac ko fpr i v i t y ”o r“ ( i nabi l i t yt o )r e c a l lb ec a us ei tha ppe ne dal o ngt i me a go ”o r ,o nt hepa r to fMr s .Ma r c o s ,t ha t“ t hef undswe r el a wf ul l yac q ui r e d ”a r ef ul l yi ns uffic i e nt t ot endergenui nei ss ues.RespondentMarc oses ’def enseswereasham andevi dent l ycal i brat ed t oc ompoundandconf uset hei ss ues . The f ol l owi ng pl eadi ngs fil ed by re spondentMarc ose s are r epl et e wi t hi ndi c at i ons ofa s p ur i o usde f e ns e : ( a) Respondent s’ Answerdat edOc t ober18,1993; ( b ) Pr e t r i a lBr i e fda t e dOc t o be r4 ,1 999o fMr s .Ma r c o s ,Suppl e me nt a lPr e t r i a lBr i e fda t e d Oc t ober19,1999 ofFer di nand,Jr .and Mrs .I meeMarc os Manot ocadopt i ngt hepre t r i al bri efofMrs .Marc os,and Mani f es t at i on dat edOct ober19,1999 ofI r eneMarc osAr anet a ado pt i ngt hepr e t r i albr i e f so fhe rc o r e s p onde nt s ; ( c ) Oppos i t i ont oMot i onf orSummaryJudgmentdat edMarc h21,2000,fil edbyMr s.Marc os whi cht heot herr espondent s( Marco sc hi l dren)adopted; ( d) Demurr ert oEvi denc edat edMay2,2000fil edbyMr s.Marc osandadopt edbyt heMarc os c hi l dr e n; ( e) Mot i on f orRec onsi derat i on dat edSept ember26,2000 fil edbyMr s.Marc os;Mot i on f or Reconsi derat i ondat edOct ober5,2000j oi nt l yfil edbyMrs .Manot ocandFerdi nand,Jr . ,and Suppl ement alMot i on f orRec onsi derat i on dat ed Oct ober9,2000 l i kewi sej oi nt l y fil ed by Mrs .Manot ocandFer di nand,Jr . ; ( f ) Memor andum dat ed Dec embe r 12,2000 of Mr s . Mar c os and Memor andum dat ed Dec ember17,2000oft heMarc osc hi l dren; 234

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 Republic vs. Sandiganbayan ( g) Mani f est ati ondatedMay26,1998;and ( h) Gener al / Suppl ement alAgre ementdat edDec ember23,1993.  Anexami nat i onoft hef or egoi ngpl eadi ngsi si nor der . RESPONDENTS’ ANSWER DATED OCTOBER 18,1993.

I nt he i ra ns we r ,r e s p o nde nt sf a i l e dt os pe c i fic a l l yde nye ac ha nde v e r yal l e g at i o nc o nt a i ne di n t hepe t i t i o nf o rf o r f e i t ur ei nt hema nne rr e q ui r e dbyt her ul e s .Al lt he yga v ewe r es t o c kans we r s l i ke“ t heyhavenosuffici entknowl edge”or“ t heycoul dnotrec al lbecausei thappenedal ongti me ago, ”and,ast oMrs .Marc os,“ t hef undswerel awf ul l yacqui red, ”wi t houts t ati ngt hebasi sof s uc ha s s e r t i o ns . Se c t i o n1 0,Rul e8o ft he19 97Rul e so fCi v i lPr o c e dur e ,pr o v i de s :  A def endantmus ts pec i f ye ac h mat er i alal l egat i on off ac tt het r ut h ofwhi c h hedoesno tadmi tand, wheneverpract i cabl e,shal lsetf ort ht hesubst anceoft hematt ersupon whi chherel i est osupporthi s deni al .Whereadef endantdesi rest odenyonl yapartofanaverment ,heshal lspeci f ysomuchofi tasi s t rueandmat er i alandshal ldenyt here mai nder .Wher eadef endanti swi t houtknowl edgeori nf ormat i on suffici entt of orm abel i efast ot het ruthofamater i alavermentmadei nt hecompl ai nt ,heshal lsos t ate, a ndt hi ss h al lha v et hee ffe c to fade ni a l . 28

Thepurpos eofr equi ri ngr espondent st omakeaspec i ficdeni ali st omaket hem di sc l os ef act s whi c hwi l ldi s p r o vet heal l e gat i o nso fp e t i t i o ne ratt het r i al ,t o ge t he rwi t ht hemat t e r st he yr e l y upon i n supportofs uc h deni al .Ourj ur i sdi ct i on adher est ot hi srul et oavoi d and prev ent unnec ess aryexpense sandwast eoft i mebyc ompel l i ngbot h part i est ol ayt hei rcar dson t he t a bl e ,t husr e d uc i ngt hec o nt r o v e r s yt oi t st r uet e r ms .Ase x pl a i ne d A i nl , ons ov s .Vi l l amo r 29

 A l i t i gat i oni sno tagameoft ec hni c al i t i esi nwhi c ho ne,mor edee pl ys c hool edands ki l l edi nt hes ubt l ear t ofmovementandposi t i on,ent rapsanddest ro yst heot her .I ti sr atheracontes ti nwhi cheachcont endi ng par t yf u l l yandf ai r l yl a ysb ef o r et h ec o ur tt hef ac t si ni s s ueandt he n, _ _ _ _ _ _ __ _ _ _ _ _ _ _   Sub s t a nt i a l l yt h es a mea sSe c t i o n10 ,Rul e8o ft heo l dRul e so fCo ur t .

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  1 6Phi l .3 15 ,3 21 3 2 2[ 1 91 0] .

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br us hi nga s i deaswho l l yt r i v i a la ndi nde c i s i v ea l li mpe r f e c t i o nso ff o r ma ndt e c hni c a l i t i e so fp r o c e dur e , a s kst ha tj us t i c eb edo neupo nt heme r i t s .La ws ui t s ,unl i k edue l s ,a r eno tt ob ewo nb yar a pi e r ’ st hr us t .

Ont hepartofMr s.Marc os ,shecl ai medt hatt hef undswer el awf ul l yacqui r ed.However ,she f ai l ed t o part i cul arl y st at et he ul t i mat ef act s surr oundi ng t he l awf ulmanneror mode of acqui si t i on oft hesubj ectf unds.Si mpl yput ,shemerel yst atedi n heranswerwi t ht heot her

res pondent st hatt hef undswere“ l awf ul l yacqui red”wi t houtdet ai l i nghow exact l yt hesef unds weresupposedl yacqui redl egal l ybyt hem.Eveni nt hi scasebef oreus,herasser t i ont hatt he f undswer el awf ul l yacqui r edr emai nsbareandunacc ompani edbyany f act ualsuppor twhi c h can prove,byt hepres ent at i on ofevi denceataheari ng,t hati ndeed t hef undswereacqui red l e g i t i ma t e l ybyt h eMa r c o sf a mi l y . Respondent s’ deni al si nt hei ransweratt heSandi ganbayanwer ebasedont hei ral l egedl ack ofknowl edgeori nf ormat i onsuffici entt of orm abel i efast ot het ruthoft heal l egat i onsoft he pe t i t i o n. I ti st rue t hatoneoft hemodesofs peci ficdeni alundertherul esi sa deni alt hr ough a st atementt hatt hedef endanti swi t houtknowl edgeori nf ormati onsuffici entt of orm abel i efas t ot hetr ut hoft hemater i alavermenti nt hecompl ai nt .Thequest i on,however ,i swhet hert he ki ndo fde ni a li nr e s p o nde nt s ’a ns we rq ua l i fie sa st h es p e c i ficd e ni a lc a l l e df o rb yt her ul e s .We donott hi nkso.I n r ,  t hi sCo ur tr ul e dt hati fa n al l e gat i o ndi r e c t l y  Mo al e sv s .Cour to fAppe al s and spec i fic al l yc hargesa part y wi t h havi ngdone,perf ormed orc ommi t t ed a part i cul arac t whi c ht hel att erdi dnoti nf actdo,perf orm orc ommi t ,acat egori calandexpres sdeni almustbe made . Here,despi t et heseri ousandspeci fical l egati onsagai nstt hem,t heMarc osesr esponded by si mpl ysayi ngt hatt heyhad noknowl edgeori nf ormat i on suffic i entt of orm abel i efast ot he t r ut ho fs uc ha l l e gat i o ns .Suc hag e ne r a l ,s e l f s e r v i ngc l a i mo fi g no r a nc eo ft hef ac t sal l e ge di n t hepet i t i onf orf orf ei t urewasi nsuffici entt or ai seani ssue.RespondentMarc osesshoul dhave po s i t i v e l ys t a t e dho wi twa st ha tt he ywe r es uppo s e dl yi g no r a nto ft hef a c t sal l e g e d. 30

31

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   197SCRA391[ 1991]  Phi l i ppi neAdv e r t i s i ngv s .Re vi l l a ,52SCRA246[ 1973] . 30

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Toe l uc i dat e ,t hea l l e gat i o no fp e t i t i o ne rRe publ i ci npar a gr a ph23o ft hepe t i t i o nf o rf o r f e i t ur e s t a t e d : 23.Thef ol l owi ng pres ent ati on verycl earl y and over whel mi ngl y show i n det ai lhow bot h re spondent s cl andest i nel yst ashedawayt hec ount ry’ sweal t ht oSwi t zer l andandhi dthesameunderl ayersuponl ayers off oundati onsand ot hercor porat eent i t i est opre venti t sdet ect i on.Through t hei rdummi es/ nomi nees, f r ontsor agent s who f or med t hos ef oundati ons orcor porat e ent i t i es ,t hey opened and mai nt ai ned numerousbankacc ount s.Butduet ot hedi fficul t yi fnott hei mpossi bi l i t yofdetec t i nganddocument i ngal l t ho s es e c r e ta c c o unt sa swe l la st hee no r mi t yo ft hede po s i t st he r e i nhi dde n,t hef o l l o wi ngpr e s e nt a t i o ni s $356-M  co nfinedtofivei dent i fiedacc ount sgroups,wi t hbal anc esamount i ngt oabout wi t har e s e r v a t i o n f o rt hefil i ngo fas uppl e me nt a lo rs e p ar a t ef o r f e i t ur ec o mpl a i nts ho ul dt hene e da r i s e . 32

Re s p onde nt s ’ l a mede ni a lo ft hea f o r e s a i da l l e g at i o nwa s : 22.Respondent sspeci fical l yDENY paragraph 23 i nsof arasi tal l egest hatRespondent scl andest i nel y st ashedt hecount ry’ sweal t hi nSwi t zer l andandhi dt hesameunderl ayer sandl ayer soff oundat i onsand

c o r p o r a t ee nt i t i e sf o rbe i ngf a l s e ,t het r ut hb ei ngt ha tRe s p onde nt s ’a f o r e s a i dpr o p e r t i e swe r el a wf ul l y a c q u i r e d. 33

Evi dent l y,t hi spart i cul ardeni alhadt heearmarkofwhati scal l edi nt hel aw onpl eadi ngsas ane   t ha ti s ,ade ni a lpr e g na ntwi t ht headmi s s i o no ft hes ub s t a nt i a lf a c t si nt he g a t i v epr e g nant , pl eadi ng r es ponded t owhi c h arenots quare l y deni ed.I twasi n effectan admi ss i on oft he averment si twas di r ec t ed at .St at ed ot her wi se ,a negat i ve pregnanti sa f orm ofnegati ve expres si onwhi c hcarr i eswi t hi tanaffirmat i onoratl eastani mpl i cat i onofsomeki ndf avorabl e t ot headv e r s epar t y .I ti sade ni a lpr e g nantwi t hanadmi s s i o no ft hes ubs t ant i alf ac t sa l l e ge di n t hepl eadi ng.Wher eaf acti sal l egedwi t hqual i f yi ngormodi f yi ngl anguageandt hewordsoft he a l l e g at i o na ss oqua l i fie do rmo di fie da r el i t e r a l l yde ni e d,i tha sb e enhe l dt ha tt hequa l i f y i ng c i r c ums t anc e sa l o near ed e ni e dwhi l et hef ac ti t s e l fi sa dmi t t e d. 34

35

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Pe t i t i o n,Anne x“ C” ,Vo l umeI , Ro l l o ,p.2 36 .   Ans we r ,Anne x“ D” ,Vo l umeI I ,Ro l l o ,p .1 06 4 .

32

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  61A Am.Jur . ,pp.172173.  Bl umev s .Ma c Gr e gor , nt sont heRul e so fCourt   1 48P.2 d.6 56[ s e ep .4 28 ,Mo r a n,Comme ,19 95e d. ] . 34

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I nt hei nst antc ase,t he mater i alal l egati onsi n paragraph 23 oft hesai d pet i t i on werenot spec i fical l y deni ed by r espondent si n paragraph 22 oft hei ranswer .Thedeni alc ont ai ned i n paragraph 22oft heanswerwasf oc usedont heave rmenti n paragraph 23oft hepet i t i onf or f o r f e i t ur et ha t“ Re s p o nde nt sc l a nde s t i ne l ys t a s he dt hec o unt r y ’ swe al t hi nSwi t z e r l a nda ndhi d t hesameunderl ayersandl ayersoff oundat i onsandco rporat eent i t i es. ”Paragraph 22 oft he r espondent s’answerwast husadeni alpregnantwi t h admi ss i onsoft hef ol l owi ngsubst ant i al f a c t s : 1.( 1) t hatt heSwi ssbankdeposi t sexi st edand 2.( 2) t hatt hees t i mat edsum t her eofwasUS$356. mi l l i onasofDec ember ,1990. The r e f o r e ,t he a l l e g at i o nsi nt he pe t i t i o nf o rf o r f e i t ur eo nt he e x i s t e nc eo ft he Swi s sba nk deposi t si nt hesum ofaboutUS$356mi l l i on,nothavi ngbeenspeci fical l ydeni edbyres pondent s i nt hei rans wer ,wer edeemedadmi t t edbyt hem pur s uantt oSec t i on 11,Rul e8 oft he 1997 Revi sedRul esonCi vi lProc edure: Mat eri alavermenti nt hecompl ai nt ,xxxshal lbedeemedadmi t t edwhennotspec i fical l ydeni ed.xxx. 36

By t hesamet oken,t hef ol l owi ng unsuppor t ed deni al sofr es pondent si nt hei ranswerwer e pregnant wi t h admi ss i ons oft he subst ant i al f act s al l eged i nt he Republ i c’ s pet i t i on f or f o rf e i t ur e :

23. Respondent sspec i fical l yDENY par agr aphs24,25,26,27,28,29and30oft hePet i t i on f orl ack ofknowl edge ori nf or mat i on suffic i entt of or m a bel i efast ot he t rut h oft he a l l e g at i o ns i nc er e s po nde nt swe r eno tpr i v yt ot h et r a ns a c t i o nsr e g a r di ngt heal l e g e dAz i o  Ver s oVi burFoundat i on ac c ount s ,e xc eptt hat ,as t or es pondentI mel da R.Mar c os ,s he speci fical l yrememberst hatt hef undsi nvol vedwerel awf ul l yacqui red. 24. Respondent sspeci fical l yDENYparagraphs31,32,33,34,35,36,37,38,39,40,41oft he Pe t i t i o nf o rl a c ko fkno wl e dg eo ri nf o r ma t i o ns uffic i e ntt of o r m ab el i e fa st ot het r ut ho ft he a l l e g at i o nss i nc er e s po nde nt swe r eno tpr i v yt ot het r a ns a c t i o nsa nda st os uc ht r a ns a c t i o ns t heywer epri vyto ,t heycannotr ememberwi t hexact i t udet hesamehavi ngocc urr edal ong t i meago,exc eptast ores pondentI mel da R.Marc os ,shespec i fic al l yr ememberst hatt he f undsi nv o l v e dwe r el a wf ul l yac q ui r e d . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Sub s t a nt i a l l yt h es amea sSe c t i o n1 ,Rul e9oft heo l dRul e so fCo ur t .

36

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25. Respondent sspeci fical l yDENY paragraphs42,43,45,and46oft hepet i t i onf orl ackof knowl edgeori nf ormati onsuffici entt of rom abel i efast ot het ruthoft heal l egat i onssi nc e r e s p o nde nt swe r en o tpr i v yt ot het r a ns a c t i o nsa ndast os uc ht r a ns a c t i o nt he ywe r ep r i v yt o , t heycannotr ememberwi t h exac t i t ude,t hesamehavi ngoc c ur r edal ongt i meago,ex c ept t hatast ores pondentI mel daR.Marc os ,shespec i fical l yr ememberst hatt hef undsi nvol ved we r el a wf ul l yac q ui r e d . 26. Respondent sspec i fic al l yDENY par agr aphs49,50,51and52oft hepet i t i onf orl ackof kno wl e dg eandi nf o r ma t i o ns uffic i e ntt of o r m abe l i e fa st ot het r ut ho ft hea l l e g at i o nss i nc e res pondent swerenotpri vyt ot het ransact i onsandastos uc ht r ansact i ont heywerepri vyt o t heycannotr ememberwi t h exac t i t udet he samehavi ngoc c urr edal ong t i meago,exc ept t hatast ores pondentI mel daR.Marc os ,shespec i fical l yr ememberst hatt hef undsi nvol ved we r el a wf ul l yac q ui r e d . Themat t er sref err edt oi n par agr aphs23 t o26oft heres pondent s’answerpert ai nedt ot he cr eati on offivegroupsofaccount saswel last hei rres pect i veendi ngbal ancesand att ached document sal l egedi nparagraphs24t o52oft heRepubl i c’ spet i t i onf orf orf ei t ure.Respondent I mel daR.Marc osnevers peci fical l ydeni edt heexi st enceoft heSwi ssf unds.Herc l ai mt hat“ t he f undsi nvol vedwer el awf ul l yacqui r ed”wasanacknowl edgmento nherpartoft heexi s t enc eof s a i dde po s i t s .Thi so nl yr e i nf o r c e dhe re ar l i e ra dmi s s i o no ft heal l e gat i o ni npar a gr a ph23oft he pe t i t i o nf o rf o r f e i t ur er e g a r di ngt hee xi s t e nc eo ft heUS$ 35 6mi l l i o nSwi s sb ankde po s i t s .

The al l egat i ons i n paragraphs 47  and 48 o ft he pe t i t i o nf o rf o r f e i t ur er e f e r r i ng t ot he c r eat i on and amountoft he depos i t s oft he Ros al ys Aguami na Foundat i on as wel last he ave rmenti n paragr aph 52a oft hesai d pet i t i on wi t hr espec tt ot hesum oft heSwi ssbank deposi t sest i mat edt obeUS$356mi l l i onwer eagai n nots peci fical l ydeni edbyr espondent si n t hei ranswer .Therespondent sdi dnotatal lres pondt ot hei ss uesr ai sedi nt heseparagraphs andt heexi s t ence,nat ur eandamountoft heSwi s sf undswer et her ef or edeemedadmi t t edby t hem.Ashel di nGal o f av s .Ne e 37

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_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Supra.

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Supra.

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  “ Al lt hefiv e( 5 )g r o upa c c o unt si nt heo v e r a l lflo wc h a r th a v eat o t a lb a l a nc eo fa b o utThr e eHund r e dFi f t ySi x Mi l l i o nDo l l a r s( $ 35 6, 0 00 , 0 00 , 0 0)a ss ho wnb yAnne x‘ R5 ’he r e t oat t a c he da si nt e g r a lp a r th er e o f . ” 39

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fade f e ndant ’ sde ni ali sane ga t i v epr e g nant ,i ti se q ui v al e ntt oana dmi s s i o n.  Bo nSi ng,i Mo r e o v e r ,r e s p onde nt s ’de ni a lo ft hea l l e g at i o nsi nt hepe t i t i o nf o rf o r f e i t ur e“ f o rl ac ko f knowl edgeori nf ormati on suffici entt of orm a bel i efast ot het ruth oft heal l egati onssi nc e r e s p o nde nt swe r eno tp r i v yt ot het r a ns a c t i o ns ”wa sj us tapr e t e ns e .Mr s .Ma r c o s ’pr i v i t yt ot he t ransact i onswasi nf actevi dentf rom hers i gnaturesonsomeoft hevi t aldocument s   at t a c he dt o t hepe t i t i o nf o rf o r f e i t ur ewhi c hMr s .Mar c o sf ai l e dt os pe c i fic a l l yde nyasr e q ui r e db yt her ul e s . I ti swo r t hyt ono t et ha tt hepe r t i ne ntd o c ume nt sat t a c he dt ot h epe t i t i o nf o rf o r f e i t ur ewe r e eve ns i gnedper so nal l ybyres pondentMr s.Marc osandherl at ehusband,Fer di nandE.Marc os , i ndi c at i ng t hatsai d document s wer e wi t hi nt hei r knowl edge.As co rr ec t l y poi nt ed outby Sandi g anb ay anJ us t i c eFr a nc i s c oVi l l a r uz ,J r .i nhi sdi s s e nt i ngo pi ni o n: 40

41

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_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   22SCRA48[ 1968] . XANDYWI NTROPAVERTI NA FOUNDATI ON:( a)Cont r ac tf orope ni ngofde pos i tda t edMar c h 21,1968;( b)

40

41

Ha nd wr i t t e ni ns t r u c t i o n;( c )Le t t e rd a t e dMa r c h3 ,1 9 70 ;( d )Ha nd wr i t t e nr e g u l a t i o no fXa nd yd at e dFe b r ua r y13 , 1 97 0;( e )Le t t e ro fi ns t r u c t i o nd at e dMa r c h1 0,1 98 1;( f )Le t t e ro fI ns t r u c t i o nsda t e dMa r c h1 0,1 99 1. TRI NI DADRAYBYPALMY FOUNDATI ON:( a)Manag e me ntag r e ementdat edAugus t2 8,199 0;( b)Let t ero f i nst ruct i on datedAugust26,1970 t oMarker sGeelofFuri c h;( c)Appr ovalo fStat utesand Byl awsofTri ni dad Fo und at i o nd at e dAug us t2 6,1 9 90 ;( d )Re g ul a t i o nso ft heTr i ni d adFo un da t i o nd at e dAug us t2 8,1 9 70 ;( e )Re g ul a t i o ns o ft heTr i ni d adFo und at i o np r e p a r e db yMa r k e r sGe e ld at e dAug us t2 8 ,1 97 0 ;( f )Le t t e ro fI ns t r u c t i o nst ot h eBo a r do f Ra y b yFo u nd at i o nd at e dMa r c h1 0 ,1 98 1 ;( g )Le t t e ro fI ns t r u c t i o nst ot heBo a r do fTr i ni d adFo und at i o nd at e dMa r c h 1 0 ,1 98 1 . MALERESTABLI SHMENTFOUNDATI ON:( a)Rul esandRegul at i onsofMal erdat edOc t obe r15,1968;( b)Let t er o fAut ho r i z a t i o nd at e dOc t o b e r1 9,1 9 68t oBa r b e ydSunc i r ;( c )Le t t e ro fI ns t r u c t i o nt oMul e rt oSwi s sBa nkd at e d Oc t o b e r1 9 ,1 9 68 .   “ Whe r ea na c t i o no rd e f e ns ei sf o und e dup o nawr i t t e ni ns t r u me n t ,c o p i e di no ra t t a c h e dt ot h ec o r r e s p o nd i n g pl eadi ngxxx,t hegenui nenes sanddueexec ut i onoft hei nst rumentshal lbedeemedadmi t t edunl esst headvers e p ar t yund e ro at h,s p e c i fic a l l yde ni e st he m,a nds e t sf o r t hwha th ec l a i mst obet h ef a c t sxxx . ” 42

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Thepat t ernof :1)c re ati ngf oundat i ons,2)useofpseudonymsanddummi es,3)appro vi ngre gul ati onsof t heFoundat i onsf ort hedi st ri but i on ofcapi t aland i nco meoft heFoundat i onstot heFi rs tand Sec ond benefici ary( whoarenoot hert hanFM andhi sf ami l y) ,4)openi ngofbankacc ount sf ort heFoundat i ons,5) c hangi ngt henamesoft heFoundat i ons,6)t r ansf err i ng f undsand asse t soft heFoundat i onst oot her Foundati onsorFi desTrust ,7)l i qui dati onoft heFoundat i onsassubst ant i atedbytheAnnexes“ U”t o“ U1 68 ” ,Pe t i t i o n[ f o rf o r f e i t ur e ]s t r o ng l yi ndi c a t et ha tFM a nd/ o rI me l dawe r et her e a lo wne r so ft heas s e t s deposi t edi nt heSwi ssbanks,usi ngt heFoundat i onsasdummi es . 43

How coul drespondent st her ef orecl ai ml ackofsuffici entknowl edgeori nf ormati onregardi ngt he exi s t enceoft heSwi ssbank deposi t sand t hec r eat i on offivegr oupsofac c ount swhen Mr s. Marc osandherl at ehusband per s onal l ymast er mi ndedandpart i c i pat edi nt hef or mat i onand c o nt r o lo fs a i df o unda t i o ns ?Thi si saf a c tr e s p o nde ntMa r c o s e swe r ene v e ra bl et oe x pl a i n. Notonl yt hat .Res pondent s’answeral sot ec hni c al l y admi t t ed t he genui nenessand due exe c ut i on oft heI ncomeTaxRet ur ns( I TRs)andt hebal anc eshee t soft hel at eFer di nandE. Marc osandI mel daR.Marc osat t achedt othepet i t i onf orf orf ei t ure,aswel last heverac i t yof t hec o nt e nt st he r e o f . Theansweragai npremi se di t sdeni al sofsai dI TRsandbal anc esheet sont hegroundofl ack ofknowl edgeori nf ormati onsuffici entt of orm abel i efast othet rut hoft hecont ent st here of . Pet i t i onercorr ect l y poi nt soutt hatrespondent s’deni alwas notr eal l y grounded on l ack of knowl edgeori nf ormat i onsuffici entt of orm abel i efbutwasbase donl ackofre co l l ec t i on.By re vi ewi ngt hei ro wnrec or ds,res pondentMarc osescoul dhaveeasi l ydet ermi nedthegenui neness anddueexec ut i onoft heI TRsandthebal anc esheet s.Theyal sohadt hemeansandopport uni t y ofveri f yi ngt hesamef rom t her ec ordsoft heBI Randt heOfficeoft hePres i dent .Theydi dnot . When mat t er sreg ar di ng whi c hr es pondent scl ai m t o haveno knowl edge ori nf or mat i on suffici entt of orm a bel i efarepl ai nl y and nec ess ari l y wi t hi nt hei rknowl edge,t hei ral l eged i g no r a nc eo rl a c ko fi nf o r ma t i o nwi l lno tb ec o ns i de r e das p e c i ficd eni a l .   Anunexpl ai neddeni al o fi nf o r ma t i o nwi t hi nt hec o nt r o lo ft hepl e ade r ,o ri s 44

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Anne x“ AF” ,Vo l umeI ,Ro l l o ,p p.1 93 1 94 .  I c ePl antEqui pme ntv s .Mar t o c e l l o,D. C. P. ,   1 9 41 ,4 3F .Sup p.2 8 1. 43

44

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r e a di l yac c e s s i bl et ohi m,i se v as i v eandi si ns uffic i e ntt oc o ns t i t ut eane ffe c t i v ede ni al . Thef or m ofdeni aladopt edbyr es pondent smus tbeavai l edof wi t hs i nc e r i t yand i ng o o d  f ai t h,andc e r t ai nl yno tf o rt hepur po s eo fc o nf us i ngt headve r s epar t yast owhatal l e g at i onso f t hepe t i t i o nar er e a l l yb e i ngc hal l e ng e d;no rs ho ul di tb emadef o rt hepur p o s eo fd e l a y .I nt he i nst antcase,t he Marc os es di d notonl y pres entunsubs t ant i at ed ass ert i ons buti nt rut h att empt edt omi sl eadanddecei vet hi sCourtbypresenti nganobvi ousl ycont ri veddef ense. 45

46

Si mpl yput ,apr o f e s s i o no fi g no r a nc ea bo utaf a c twhi c hi spa t e nt l yandne c e s s a r i l ywi t hi n t hepl eader’ sknowl edgeormeansofknowi ngi sasi .Res pondent s ’ ne ffe c t i v easnode n i alatal l i neffect i vedeni alt husf ai l edt oproper l yt enderan i ss ueandt heaverment scontai nedi nt he pe t i t i o nf o rf o r f e i t ur ewe r ede e me dj udi c i a l l ya dmi t t e db yt he m.  Ashel di n . :  J P.Juan&So ns ,I nc .v s .Li ang aI ndus t r i e s , I nc . 47

I t s“ s p e c i ficde ni a l ”o ft hema t e r i a la l l e g at i o no ft hepe t i t i o n wi t ho uts e t t i ngf o r t ht hes ub s t a nc eoft he mat t er srel i edupon t osupporti t sgener aldeni al ,whensuchmat t er swer epl ai nl ywi t hi ni t sknowl edge a ndi tc o ul dno tl o g i c a l l ypr e t e ndi g no r a nc east ot hes ame ,t he r e f o r e ,f a i l e dt opr o p er l yt e nde ro ni s s u e. 48

Thus ,t hege ne r a ld e ni alo ft heMar c o sc hi l dr e no ft heal l e gat i o nsi nt hepe t i t i o nf o rf o r f e i t ur e “ f o rl a c ko fkno wl e dg eo ri nf o r ma t i o ns uffic i e ntt of o r m ab el i e fa st ot h et r ut ho ft heal l e g at i o ns s i nc et he ywe r eno tpr i v yt ot het r a ns a c t i o ns ”c a nno tr i g ht f ul l ybeac c e pt e da sade f e ns eb e c aus e t heyaret hel egalhei rsandsucces sor si ni nt er estofFerdi nandE.Marc osandaret heref ore b oundb yt heac t so ft he i rf a t he rvi s avi s   t heSwi ssf unds. PRETRI ALBRI EFDATED OCTOBER18,1993 Thepret ri albri efofMrs .Marc oswasadopt edbyt het hreeMarc oschi l dren.I nsai dbri ef ,Mr s. Marc oss t res sedt hatt hef unds _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 45  P hi l .Adv e r t i s i ngCouns e l or s ,I nc .v s .Re vi l l a,   L3 18 6 9,Aug .8 ,1 9 73 . 46

Wa r ne rBa r ne s& Co . ,Lt d.v s . Re y e s ,e ta l . ,5 5O. G.3 10 93 11 1.

 Phi l i ppi neBankofCo mmuni c at i onsv s .Cour tofAppe al s ,   195SCRA567[ 1991] . 47

  28SCRA807,812[ 1969] .

48

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i nv o l v e dwe r el a wf ul l ya c q ui r e d .But ,a si nt he i rans we r ,t he yf a i l e dt os t a t eands ub s t a nt i a t e how t hes ef unds wer e acqui r ed l awf ul l y .They f ai l ed t o pre se ntand at t ac h ev en a si ngl e documentt hatwoul dshow andprovet het rut h oft hei ral l egat i ons.Sec t i on6,Rul e18oft he 1997Rul esofCi vi lProc edureprovi des: Thepa r t i e ss ha l lfil ewi t ht hec o ur ta nds e r v eo nt headv e r s epa r t y ,xxxt he i rr e s p e c t i v epr e t r i a lb r i e f s whi chshal lcontai n,amongot hers : xxx ( d) t hedo c ume nt so re x hi b i t st obepr e s e nt e d,s t a t i ngt h epur p o s et h er e o f ; xxx ( f )t henumberandnamesoft hewi t nesses ,andt hesubst anceoft hei rr espect i vet est i moni es. 49

I ti sunq ue s t i o na bl ywi t hi nt hec o ur t ’ spo we rt or e q ui r et hepa r t i e st os ub mi tt he i rpr e t r i a l bri ef sand t os t at et henumberofwi t nes sesi nt ended t obecal l ed t ot hest and,and a bri ef summaryoft heevi denc eeachoft hem i sexpect edt ogi veaswel last odi sc l oset henumberof document st obesubmi t t edwi t hadescr i pt i onoft henatureofeach.Thet enorandcharact erof t het es t i mony oft hewi t nes s esand oft hedoc ument st obededuc ed att het r i alt husmade

kno wn,i na ddi t i o nt ot hepa r t i c u l a ri s s u eso ff a c ta ndl a w,i tb e c o me sappa r e nti fg e nui nei s s u e s a r eb e i ngputf o r wa r dne c e s s i t a t i ngt heho l di ngo fat r i a l .Li k e wi s e ,t hepa r t i e sar eo bl i g e dno t onl yt omakeaf ormali dent i ficat i onandspeci ficat i onoft hei ss uesandt hei rproof s,andt oput t hesematt ersi nwri t i ngandsubmi tt hem t ot hec ourtwi t hi nt hespeci fiedperi odf ort heprompt di s po s i t i o no ft heac t i o n. Thepret ri albri efofMrs .Marc os,assubsequent l yadoptedbyre spondentMarc osc hi l dren, merel yst ated: 50

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Rul e2 0o ft heo l dRul e so fCo ur twa sa me nd e db utt hec h a ng e ( s )ha dnoa dv e r s ee ffe c t so nt her i g ht so fp r i v a t e r e s p o n d e n t s . 50  De v e l opme ntBankoft hePhi l s .v s .Co ur tofAppe al s ,   G. R.No.L49410,169SCRA409[ 1989] . 49

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xxx WI TNESSES 4. 1RespondentI mel dawi l lpresenthers el fasawi t nessandres ervest heri ghtt opres entaddi t i onal wi t nessesasmaybeneces saryi nt hecours eoft hetr i al . xxx DOCUMENTARYEVI DENCE 5. 1RespondentI mel dare ser vest heri ghtt opres entandi nt ro ducei nevi dencedoc ument sasmaybe ne c e s s ar yi nt hec o ur s eo ft het r i al .

Mr s.Marc osdi dnotenumer at eanddesc ri bet hedoc ument sc onst i t ut i nghere vi denc e.Nei t her t henamesofwi t ness esnort henat ur eoft hei rt es t i mony wass t at ed.Whatal one appeare d cer t ai nwast het est i monyofMr s.Marc osonl ywhoi nf acthadprevi ousl ycl ai medi gnoranceand l ackofknowl edge.Andevent hen,t hesubst anceofhert est i mony,asrequi redbytherul es,was notmadeknown,ei t her .Suc h cunni ngt act i csofres pondent saret ot al l yunacc eptabl etot hi s Court .Wehol dt hat ,si nc eno genui nei s suewasrai s ed,t hec asebecameri pe f ors ummary  j udgment . OPPOSI TI ON TOMOTI ON FOR SUMMARYJUDGMENTDATED MARCH 21,2000

Theopposi t i onfil edbyMr s.Mar c ost ot hemot i onf ors ummaryj udgmentdat edMarc h21,2000 ofpet i t i onerRepubl i cwasmerel yadopt edbyt heMarc osc hi l drenast hei rownopposi t i ont ot he sai dmot i on.However ,i twasagai nnotacc ompani edbyaffidavi t s,deposi t i onsoradmi ss i onsas requi redbySect i on3,Rul e35oft he1997Rul esonCi vi lProc edure: xxxTheadver separt ymayser veopposi ngaffidavi t s,deposi t i ons,oradmi ss i onsatl eastt hre e( 3)days bef or e hear i ng.Af t er hear i ng,t he j udgment so ught shal lbe r ender ed f or t hwi t hi ft he pl eadi ngs, support i ngaffidavi t s,deposi t i ons,andadmi ss i onsonfil e,show t hat,exc eptast ot heamounto fdamages,

t herei snogenui nei ssueast oanymater i alf actandt hatt hemovi ngpart yi sent i t l edt oaj udgmentasa ma t t e ro fl a w. 51

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Sub s t a nt i a l l yt h es a mea sSe c t i o n3 ,Rul e3 4o ft heo l dRul e so fCo ur t .

51

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SUPREME COURT REPORTS ANNOTATED  Republic vs. Sandiganbayan

The absence of oppos i ng affidavi t s,deposi t i ons and admi ss i ons t oc ont r adi c tt he swor n decl arat i onsi nt heRepubl i c’ smot i ononl ydemonst rat edt hatt heaverment sofsuchopposi t i on wer eno  g te nui ne a ndt he r e f o r eun wo r t hyo fb e l i e f . DEMURRER

TO

EVI DENCE

DATED

MAY

2,

2000;MOTI ONS 5 2

FOR

RECONSI DERATI ON;AND MEMORANDA OF MRS.MARCOS AND THE MARCOS 5 3

CHI LDREN

5 4

 Al lt hes epl eadi ngsagai nc ont ai nednoal l egat i onsoff ac t ss ho wi ngt hei rl awf ulac qui s i t i on of t hef unds.Onc emor e,r espondent smer el ymadegener aldeni al swi t houtal l egi ngf act swhi c h wo ul dha v ebe e na dmi s s i b l ei ne v i de nc ea tt hehe a r i ng ,t he r e b yf a i l i ngt or a i s eg e nui nei s s u e so f f a c t . Mr s.Marc osi nsi st si nhermemor andum dat edOct ober21,2002t hat ,duri ngt hepre t ri al , herc ounselst atedt hathi scl i entwasj ustabenefici aryoft hef unds,c ont raryt opet i t i oner Re pub l i c ’ sa l l e g at i o nt ha tMr s .Ma r c o sd i s c l a i me do wne r s h i po fo ri nt e r e s ti nt hef unds . Thi si sy e ta no t he ri ndi c a t i o nt ha tr e s po nde nt spr e s e nt e dafic t i t i o usde f e ns eb ec a us e ,dur i ng t hepret ri al ,Mrs .Marc osandt heMarc osc hi l dr end e n i e downers hi pofori nt eres ti nt heSwi ss funds:

PJ >ch%($ M? %& c%! h  &  ')#! Mc%  c%(c(! h%"
52

  Dat edSept ember26,2000asfil edbyMrs .Marc os;date dOct ober5,2000asj oi ntl yfil edbyMrs .Manot ocand Fe r d i na nd ,J r . ;s u pp l e me nt a lmo t i o nf o rr e c o ns i d e r a t i o nd at e d Oc t o b e r9 ,2 0 0 0j o i nt l yfil e db yMr s .Ma no t o ca nd Fe r d i na nd ,J r . 54   Dat edDec ember12,2000andDec ember17,2000asfil edbyt heMarc osc hi l dren. 53

245

VOL. 406, JULY 15, 2003 245  Republic vs. Sandiganbayan PJ >ch%($ Th . O?:. C%"(# &% M(%%c (! M(%%c, J. Fh  :%" %( h D% h  %& Mc% %( (:h(< %& h @360 )##%( "c %& h c. A:. TECSON$ F %(! h M(&%( %& C%"(#. PJ >ch%($ Y%" !% (% %( (:h(< A:. TECSON$ Y, Y%" %(%. PJ >ch%($ C%"(# &% '( A( A:. S'SON$ ' %( h %%( ?( : ): %h c%)G% h, Y%" %(%. +++ A:. S'SON$ '( A(  h !% * sic/ (% %( (: %& h )%"(, Y%" %(%. 55

Weareconvi ncedt hatt hest rat egyofres pondentMarc oseswast oconf usepet i t i onerRepubl i c a st owha tf a c t st he ywo ul dpr o v eo rwha ti s s u est he yi nt e nde dt opo s ef o rt hec o ur t ’ sr e s o l ut i o n. Therei snodoubti nourmi ndt hatt heywer el eadi ngpet i t i onerRepubl i c,andnow t hi sCourt ,t o pe r pl e xi t y ,i fno tt r yi ngt odr agt hi sf o r f e i t ur ec as et oe t e r ni t y . MANI FESTATI ON

DATED

MAY

26, 1998

FI LED

BY

MRS. MARCOS;

GENERAL/ SUPPLEMENTAL COMPROMI SE AGREEMENT DATED DECEMBER 28, 1993

The s ep l e adi ng so fr e s p o nde ntMa r c o s e spr e s e nt e dno t hi ngbutf e i g ne dde f e ns e s .I nt he i re ar l i e r pl eadi ngs,res pondent sal l egedei t hert hatt heyhadnoknowl edgeoft heexi st enceoft heSwi ss deposi t sort hatt heycoul dnol ongerr ememberanyt hi ngasi thappenedal ongti meago.Ast o Mr s.Marc os,sherememberedt hati twasl awf ul l yac qui r ed. I nherMani f es t at i ondat edMay26,1998,Mrs .Marc oss t at edt hat : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   TSN,p p.4 7 4 8 ,Oc t o b e r2 8 ,1 99 9 .

55

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SUPREME COURT REPORTS ANNOTATED  Republic vs. Sandiganbayan

COMES NOW under s i gnedc ounse lf orr es pondentI mel daR.Mar c os ,andbef or et hi sHonor abl eCourt , mo s tr e s p e c t f ul l yma ni f e s t s : Thatres pondentI mel daR.Marcosowns90% oft hesubj ectmatt eroft heaboveent i t l edcase,bei ngt he s o l eb ene fic i a r yo ft hedo l l a rde po s i t si nt hena meo ft hev ar i o usf o unda t i o nsa l l e g e di nt hec a s e ; Tha ti nf a c to nl y10 %o ft hes ub j e c tma t t e ri nt heab o ve e nt i t l e dc a s ebe l o ng st ot hee s t a t eo ft hel a t e Pr es i dentFer di nandE.Marc os .

I nt heCompr omi s e/ Suppl ement alAgr ee ment s ,r es pondentMar c os ess oughtt oi mpl ementt he agreed di st ri but i on oft he Marc os asset s, i nc l udi ng t heSwi s sde p o s i t s . Thi s was,t o us,an unequi vocaladmi ss i onofowners hi pbytheMarcos esoft hesai ddeposi t s. But ,asal ready poi nt ed out ,duri ngt hepret ri alc onf erence,res pondentMarc osesdeni ed knowl edgeaswel lasowner shi poft heSwi ssf unds.  Anyway we l ook ati t ,r es pondentMar c os eshave putf or t h no r ealdef ens e.The “ f ac t s ” pl e ade db yr e s p onde nt s ,whi l eo s t e ns i bl yr a i s i ngi mpo r t a ntq ue s t i o nso ri s s ue so ff ac t ,i nr e al i t y c ompri sedmer everbi aget hatwasevi dent l ywant i ngi nsubst anceandc ons t i t ut ednogenui ne i s s ue sf o rt r i al . Wet her ef or erul et hat ,undert heci r cumst ance s,summaryj udgmenti sproper . I nf act ,i ti st hel aw i t sel fwhi c hdet ermi neswhensummaryj udgmenti scal l edf or .Undert he rul es,summaryj udgmenti sappropri atewhent herear enogenui nei ss uesoff actrequi ri ngt he pr e s e nt at i o no fe v i de nc ei naf ul l bl o wnt r i al .Ev e ni fo nt he i rf ac et hepl e adi ng sappe art or ai s e i ss ue,i ft heaffidavi t s,deposi t i onsandadmi ssi onsshow t hatsuchi ss uesarenotgenui ne,t hen summaryj udgmentaspre sc r i bedbyt her ul esmus tensueasamat t erofl aw. I nsum,meredeni al s,i funacc ompani edbyanyf actwhi c hwi l lbeadmi ssi bl ei nevi denceata heari ng,arenots uffici entt or ai segenui ne i ss uesoff actand wi l lnotdef eata mot i on f or s ummar yj udgment .A s ummar yj udgmenti sone gr ant ed upon mo t i on ofa par t yf oran e x pe di t i o uss e t t l e me nto ft hec as e ,i ta ppe ar i ngf r o mt hepl e a di ng s ,de po s i t i o ns ,a dmi s s i o nsand affidavi t st hatt herear e 56

57

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 56  E v ade lRe al t yandDe v e l o pme ntCor p.v s .Spo us e sAnt e r aandVi r gi l i oSo r i ano,   Apri l20,2001,357SCRA395. 57  P l ant ado s iv s .Lo e w’ s ,I nc . ,   7Fe d .Rul e sS er v i c e , 7 86 ,J une2 ,1 94 3.

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no i mport antquest i ons ori ss uesoff actposed and,t heref or e,t he movanti s ent i t l ed t oa  j udgmentasamat t erofl aw.A mo t i onf ors ummar yj udgmenti spr emi s edont heas s umpt i on t ha tt hei s s u esp r e s e nt e dne e dno tb et r i e de i t he rb e c a us et he s ea r epa t e nt l yde v o i do fs ub s t a nc e o rt ha tt he r ei snog e nui nei s s uea st oa nype r t i ne ntf a c t .I ti same t ho ds a nc t i o ne db yt heRul e s of Court f or t he prompt di spos i t i on of a c i vi l act i on wher et her e exi s t s no s er i ous c o n t r o v e r s y .  Summaryj udgmenti saproc eduraldevi cef ort hepromptdi sposi t i onofact i onsi n whi c ht hepl eadi ngsrai seonl yal egali ss ue,notagenui nei ss ueast oanymater i alf act .The t heo r yofs ummar yj udgmenti st hat ,al t hough an ans wermayon i t sf ac eappeart ot ender i s s u esr e q ui r i ng t r i a l ,i fi ti se s t a bl i s he db ya ffida vi t s ,de po s i t i o nso ra dmi s s i o nst ha tt ho s e 58

i ss uesarenotgenui nebutfic t i t i ous,t heCourti sj ust i fied i n di spensi ng wi t ht het ri aland r enderi ngsummaryj udgmentf orpet i t i oner . I nt he v ar i o usa nne x e st ot hepe t i t i o nf o rf o r f e i t ur e ,pe t i t i o ne rRe pub l i cat t a c he ds wo r n st at ement sofwi t nes se swho had pers onalknowl edge oft he Marc os es’part i ci pat i on i nt he i l l egalacqui si t i onoff undsdeposi t edi nt heSwi ssacc ount sundert henamesoffivegroupsor f oundat i ons.Thes e sworn st at ement ssubst ant i at ed t he i l l got t en nat ur eoft heSwi ssbank deposi t s.I nt hei ranswerandot hers ubsequentpl eadi ngs,however ,t heMarc os esmer el ymade g e ne r a lde ni a l so ft heal l e g at i o nsag ai ns tt he m wi t ho uts t a t i ngf a c t sadmi s s i b l ei ne v i de nc eat t hehe ar i ng ,t he r e b yf ai l i ngt or ai s eanyge nui nei s s ue so ff a c t . Undert hesec i r c ums t anc es,at ri alwoul dhaveser vednopurpos eatal landwoul dhavebeen t ot al l yunnec ess ary,t husj ust i f yi ngasummaryj udgmenton t hepet i t i onf orf orf ei t ur e.There werenoopposi ngaffidavi t st ocont radi ctt hesworndecl arat i onsoft hewi t ness esofpet i t i oner Re pub l i c ,l e a di ngt ot hei ne s c a pa bl ec o nc l us i o nt ha tt hema t t e r sr a i s e di nt heMa r c o s e s ’ a ns we r we r ef a l s e . Ti me and agai n,t hi sCourthas enc ount er ed c asesl i ke t hi swhi c h areei t heronl y hal f he ar t e dl y de f e nde do r ,i ft hes e mb l a nc eo fa de f e ns ei si nt e r p o s e da tal l ,i ti sonl yt ode l a y di s p os i t i o na nd g ai nt i me .I ti sc e r t a i nl y no ti nt he i nt e r e s to fj us t i c et oa l l o wr e s p o nde nt Ma r c o s e st oa v ai lo ft hea ppe l l a t er e me di e sa c c o r d e db y 59

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 58  R abac av s .Ve l e z ,   341SCRA543[ 2000] . 59

CarconDev el opmentCorp.vs. CourtofAppeal s,   180SCRA348[ 1989] .

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t heRul e so fCo ur tt ol i t i g ant si ng o o df a i t h,t ot hepr e j udi c eo ft heRe pub l i ca ndul t i ma t e l yo f t heFi l i pi nopeopl e.From t hebegi nni ng,a candi d demonst r ati on ofres pondent s’good f ai t h shoul dhavebeenmadet ot hec ourtbel ow.Wi t houtt hedecept i ver easoni ngandargument at i on, t hi spr o t r a c t e dl i t i g at i o nc o ul dha v ee nde dal o ngt i meag o . Si nc e19 91 ,whe nt hepe t i t i o nf o rf o r f e i t ur ewa sfir s tfi l e d,upt ot hepr e s e n t ,a l lr e s p o nde nt s haveofferedaref oxyres ponsesl i ke “ l ack ofsuffici entknowl edgeorl ack ofpri vi t y”or“ t hey c annotr ec al lbec ausei thappened a l ong t i meago”or ,ast oMr s.Marc os ,“ t hef undswer e l awf ul l yacqui red. ”But ,wheneveri tsui t st hem,t heyal socl ai m owners hi pof90% oft hef unds andal l egethato nl y10% bel ongst ot heMarc osest ate.I thasbeenan i ncr edi bl echaradef rom begi nni ngt oend. I nt hehopeofc onvi nci ngt hi sCourtt orul eot herwi se,r es pondent sMari aI mel daMarc osManot ocandFer di nandR.Marc osJr .co nt endthat“ byi t sposi t i veact sandexpres sadmi ss i ons pri ort ofil i ngt hemot i onf ors ummaryj udgmentonMarc h 10,2000,pet i t i onerRepubl i chad b oundi t s e l ft og ot ot r i a lo nt heb as i so fe x i s t i ngi s s u e s .Thus ,i tha dl e g al l ywa i v e dwha t e v e r r i ghti thadtomovef orsummaryj udgment . ” Wedono tt hi nks o .Theal l e g e dpo s i t i v eac t sa nde x pr e s sa dmi s s i o nso ft hepe t i t i o ne rd i dno t prec l udei tf ro m fil i ngamot i onf orsummaryj udgment . 60

Rul e35oft he1997Rul esofCi vi lProc edureprovi des: Rul e35 Summ mmar yJudg ment mmar yj udgme me ntf orc l ai mant Se c t i o n1 .Summ . —A part ysee ki ngt orec overuponacl ai m,count erc l ai m,or atan yt i meaf t e rt hep l e a di ngi na ns we rt he r e t ohasb e e n c r o s s c l ai mo rt oo bt ai nade c l ar a t o r yr e l i e fma y ,  s e r v e d,   mo movewi t h suppor t i ngaffid ffidavi t s,deposi t i onsoradmi mi ss i onsf orasumm mmaryj udgme menti nhi sf avor up ona l lo ra nypa r tt he r e o f . Summaryj udgme me ntf ordef e ndi ngpart y Se c t i o n 2. . —A part yagai nstwhom acl ai m,c ount er c l ai m,or atanyt i me, c r o s s c l ai mi sa s s er t e do rade c l ar a t o r yr e l i e fi ss o ug htma y ,   mo mov ewi t hs uppor t i ngaffid ffida_ _ _ _ _ _ __ _ _ _ _ _ _ _   Ro l l o ,p p.2 65 97 0.

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vi t s,deposi t i ons oradmi ss i ons f ora summ mmary j udgme menti n hi sf avoras t o al lorany par tt her eof . ( Emphasi sours ) 61

Undert herul e,t hepl ai nt i ffc anmovef ors ummaryj udgment“ atanyt i meaf t ert hepl eadi ngi n answert her et o( . ,i na ns we rt ot hec l a i m,c o unt e r c l a i mo rc r o s s c l a i m)ha sbe e ns e r v e d. ”No i . e fixedr egl eme ment aryper i odi sprovi dedbyt heRul es.How el sedoesoneconst ruet hephr ase“ any t i meaf t ert heanswerhasbeense rve d?” Thi si s s u ei sac t ua l l yo neo ffir s ti mpr e s s i o n.Nol o c a lj ur i s p r ude nc eo raut ho r i t a t i v ewo r k hast ouc hedupont hi sm ma att er .Thi sbei ngso,anexami mi nati onoff or ei gnl awsandj uri sprudence, part i cul arl yt hos eoft heUni t edSt at eswh wher emanyofourl awsandrul eswer ec opi ed,i si n o r d e r . Rul e56oft heFederalRul esofCi vi lProc edureprovi dest hatapart yseeki ngt orec overupon ac l ai m,c ount er c l ai m orc r os s c l ai m maymov ef ors umm mmaryj udgme mentat an yt i meaf t e rt he  e x pi r at i o no f20day sf r o m t hec o mme nc e me nto ft heac t i o noraf t erser vi ceofa mot i on f or summ mmaryj udgme mentbyt headver separt y,andt hatapart yagai ns twhom acl ai m,c ount er c l ai m orc r os s c l ai mi sas se rt edma maymo movef orsumm mmaryj udgme mentatanyt i me. However ,som me e rul es ,part i cul arl y Rul e 113 oft he Rul esofCi vi lPr act i ceofNew Yor k, spec i fic al l ypro vi det hatamo mot i on f ors ummaryj udgme mentma maynotbema madeunt i li ss ueshave been j oi ned,t hati s,onl yaf t eran answerhasbeenser ved.   Unde rs a i dr ul e ,a f t e ri s s u e sha v e beenj oi ned,t hem mo ot i onf ors ummaryj udgme ment 62

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Sub s t a nt i a l l yt hes a me mea sSe c t i o ns1a nd2,Rul e3 4o ft heo l dRul e so fCo ur t . mmar yJudg me nt we ri ss e r ve d    Rul e1 13 .Summ . —Whenanans i na na c t i o nt or e c ov e radeb to ral i q ui d at e dd e ma ma nd a r i s i ng , 1 .o nac o nt r a c t , e x pr e s so ri mpl i e d,s e a l e dorno ts c a l e d ;o r 2.onaj udgm me entf oras t at edsum; m;t heanswermaybest ruc koutandj udgme mente nt er edt her eononmot i on,andt he a ffid ffid av i to ft hepl a i nt i ffo ro fa nyo t h e rpe r s o nha v i ngkno wl e dg eo ft hef a c t s ,v e r i f y i ngt h ec a us eo fa c t i o na nds t a t i ng t heamo untc l a i me d ,a n dhi sb e l i e ft ha tt he r ei snode f e ns et ot h ea c t i o n ;u nl e s st hede f e nd antb yaffid a vi to ro t he r 61

62

p r o o f ,s h a l ls h o ws u c hf a c t sa sma ma ybed e e me me d ,b yt hej ud g ehe a r i n gt hemo mo t i o n,s u ffic ffic i e n tt oe nt i t l ehi mt ode f e n d.  e i so ur s (mphas ) 250

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maybemadeatanys e dpr e s c r i p t i v epe r i o di spr o v i de d. t ag eo ft hel i t i g at i o n.Nofix Li k eRul e1 13o ft heRul e so fCi v i lPr a c t i c eo fNe w Yo r k ,o urr u l e sa l s opr o v i det ha tamo mo t i o n f ors ummaryj udgme mentma maynotbemadeunt i li ss ueshavebeenj oi ned,meani ng,t hepl ai nt i ff hast owai tf ort heans werbef or ehec anmov ef ors umm mmaryj udgme ment .   Andl i ket heNe Ne w Yor k rul es ,oursdonotpro vi def orafixedr egl eme ment aryper i odwi t hi n whi c ht omov ef ors ummary  j udgment . Thi sbei ngso,t heN Ne ew Yor kSupreme meCourt ’ si nt erpret ati onofRul e113oft heRul esofCi vi l Pr a c t i c ec a nb ea ppl i e db ya na l o g yt ot hei nt e r p r e t a t i o no fSe c t i o n1 ,Rul e35 ,o fo ur1 99 7Rul e s o fCi v i lPr o c e dur e . Undert he New Yor kr ul e,af t ert he i s s ues havebeen j oi ned,t he mot i on f ors umm mmary  j udgmentmaybemadeatanys t ageoft hel i t i gat i on.Andwhatexac t l ydoest hephr as e“ atany s t ag eo ft hel i t i g at i o n”me an?I n c heNe Ne w Yor kSupr eme meCour tr ul ed:  E ke rv s .Muz y s h,t 63

64

65

“ PERCU CURI AM. M. Pl ai nt i ffi nt r oduce dherevi denceandt hedef endant sres t edont hecasem ma adebyt hepl ai nt i ff.Thecase wa ss ub mi mi t t e d.Owi ngt ot hes e r i o usi l l ne s so ft het r i a lj us t i c e ,ade c i s i o nwa sno tr e nde r e dwi t hi ns i x t y daysaf t ert hefinaladj ournm me ento ft het erm atwhi c ht hecasewastr i ed.Wi t ht heappro valoft hetr i al  j us t i c e,t hepl ai nt i ffmo vedf orane wt r i alunderSec t i on442oft heCi vi lPr ac t i c eAc t .Thepl ai nt i ffal s o Themo mot i onwasoppos e d mov edf ors umm mmar yj udgme mentunderRul e113 oft he Rul esofCi vi lPr ac t i c e. mai nl y on t heground t hat ,by pro c e e di ng t ot r i al ,t hepl ai nt i ff had wai ve d herri ghtt os ummary  j udgme nt   and t hatt he answerand t he oppos i ng affid ffidavi t srai se dt r i abl ei s sues .The amo mountdueand unpai dundert hecont r acti snoti ndi sput e.TheSpeci alTerm grant edbot hmot i onsandt hedef endant s haveappeal ed. The Spec i alTerm pro per l y hel dt hatt he ans werand t he oppos i ng affid ffidavi t sr ai s ed no t r i abl e  R e113o ft heRul e so fCi vi lPr ac t i c eandt heCi vi lPr ac t i c eAc tpr e s c r i benol i mi t at i o nast ot he i s s ue . ul t i mewhe namo mot i onf ors ummaryj udgme ntmus tbema made .Theo bj e c tofRul e113i st oempowe rt hec ourtt o  s ummar i l yde t e r mi newhe t he ro rno tabo nafidei s s uee x i s t s _ _ _ _ _ _ __ _ _ _ _ _ _ _   73Am Jur2d733,§12;C. J. S.412,§224.

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  Mo Mor an,COMM l . I I , ( 199 6) ,pp.1 831 84. MMENTSONTHERULESOFCOURT,Vo

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  19NY NYS2d250( 1940) .

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b e t we e nt hep ar t i e s ,a ndt he r ei snol i mi t a t i o no nt hep o we we ro ft hec ou r tt oma ma kes u c hade t e r mi nat i o nat anys t a geo ft hel i t i g at i o n. ”( e mpha mp s i so ur s )

Ont heba s i so ft heaf o r e quo t e ddi s q ui s i t i o n,“ a nys t a geo ft hel i t i g at i o n”me anst hat“ e v e ni ft he pl ai nt i ffhaspro ceededt ot ri al ,t hi sdoesnotprecl udehi mf rom t hereaf t ermo movi ngf ors ummary  j udgment . ” I nt hecas eatbar ,pet i t i onermo movedf orsummaryj udgmentaf t erpr et r i aland bef or ei t s sc hedul eddat ef orpresentat i on ofevi dence.RespondentMa Marc osesarguet hat,byagreei ngt o proceed t ot ri alduri ng t he pret ri alconf ere nce,pet i t i oner “ wai ved” i t s ri ghtto sum mm mary  j udgment . Thi sar gumentmu mus tf ai li nt hel i ghtoft heNe New Yor kSupreme meCourtrul i ngwh whi c hweappl y b yanal o gyt ot hi sc a s e .I n c ,  t hedef endantopposedt hemo mot i onf orsumm mmaryj udgme mentona  E ke r groundsi mi l artot hatrai sedbyt heMarc oses ,t hati s,“ t hatpl ai nt i ff had wai vedherri ghtt o sum mm maryj udgment ”byheracto fproc eedi ngt ot ri al .I f ,asc orr ec t l yrul edbyt heNew Yor k c ourt ,pl ai nt i ff wasal l owedt omo mov ef ors ummaryj udgme mente venaf   t ri alandsubmi ss i on of t e r t hecasef orr esol ut i on,moresoshoul dweperm mi i ti ti nt hepres entc asewh wherepet i t i onermo moved f ors umm mmar yj udgme mentb   t r i al . e f o r e Ther ef or e,t hephr ase“ anyt i meaf t ert hepl eadi ngi n answert her et ohasbeen se rved”i n Sec t i on 1,Rul e 35 ofour Rul esofCi vi lPr oc eduremeans“ atany st age oft he l i t i gat i on. ” Whe ne v e ri tb e c om me e se vi de nta tanys t ag eo ft hel i t i g at i o nt ha tnot r i a bl ei s s u ee x i s t s ,o rt ha t t hedef ense srai sedbyt hedef endant ( s)aresham orf r i vol ous,pl ai nt i ffmaymovef orsumm mmary  j udgment .A c ont r ar yi nt er pr e t at i on woul d go agai ns tt he ver y obj ec t i ve oft he Rul e on Summar y Judgme mentwhi c hi st o“ wee d outs ham c l ai msordef ens est her eb y av oi di ng t he e x pe ns eandl o s so ft i mei nv o l v e di nat r i al . ” I nc a s e sw wi i t hp ol i t i c a lunde r t o ne sl i ket h eo neatb ar ,a dv e r s epa r t i e swi wi l lo f t e n doal mo s t anyt hi ngtodel ayt heproc eedi ngsi nt hehopet hataf ut ureadmi ni st rat i onsym mp pat het i ct ot hem mi ght 66

67

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_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Am Jur2d733,§12;49C. J. S.412,§224. Supra. 68 Gre gori oEs t radavs .Hon.Franci sc oConsol aci on,   71SCRA523[ 1976] . 66

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beabl et oi nfluencet heout c ome meoft hec asei nt hei rf avor .Thi si srank i nj ust i cewecannot t o l e r a t e . Thel aw l ookswi wi t hdi sf avoronl ong,pro t rac t edandexpensi vel i t i gat i onandencouragest he speedyandpromp mptdi sposi t i onofcas es.Thati swhyt hel aw andt herul espro vi def oranumber ofdevi cest oensuret hespeedydi sposi t i onofcases .Summaryj udgme menti soneoft hem. m. Fai t hf ult her ef or et ot he s pi r i toft he l aw on summ mmary j udgme mentwh whi c hs eeks t o avoi d unneces saryexpenseandl ossoft i mei nat ri al ,weherebyrul et hatpet i t i onerRepubl i ccoul d val i dl ymo movef ors ummaryj udgmentanyti meaf t ert here spondent s’ answerwasfil edor ,f ort hat ma t t e r ,a tanys ub s e que nts t a geo ft hel i t i g at i o n.Thef a c tt ha tpe t i t i o ne rag r e e dt opr o c e e dt o

t r i aldi dnoti nanywaypr ev enti tf r om movi ngf ors ummaryj udgment ,asi ndeednogenui ne i s s u eo ff a c twa se v e rv al i dl yr a i s e db yr e s p o nde ntMa r c o s e s . Thi si nt e r p r e t a t i o nc o nf o r mswi t ht heg ui di ngpr i nc i pl ee ns hr i ne di nSe c t i o n6 ,Rul e1o ft he 1 99 7Rul e so fCi v i lPr o c e dur et ha tt he“ [ r ] ul e ss ho ul db el i b er a l l yc o ns t r ue di no r d e rt opr o mo t e t hei r obj ec t i ve ofsec uri ng a j ust ,s peedy and i nexpensi ve di sposi t i on ofever y act i on and pr o c e e di ng . ” Res ponde nt sf urt her al l eg et hat t he mo t i on f or s ummar yj udgment was bas ed on r espondent s’answerandot herdoc ument st hathadl ongbeeni nt herec or dsoft hecase .Thus, by t het i met hemot i on wasfil ed on Marc h 10,2000,es t oppelby l ac heshad al r eady se ti n ag ai ns tpe t i t i o ne r . Wedi s a gr e e .Es t o ppe lb yl a c he si st hef a i l ur eo rn e gl e c tf o ra nunr e a s o na bl eo rune x pl a i ne d l engt h oft i metodot hatwhi c h,byexer ci si ngduedi l i gence,coul d orshoul dhavebeen done earl i er ,warrant i ngapre sumpt i ont hatt hepers onhasabandonedhi sri ghtordecl i nedt oass ert i t .  I ne ffe c t ,t he r e f o r e ,t hepr i nc i pl eofl ac he si so neofe s t o ppe lbe c a us e“ i tp r e v e nt spe o pl ewho ha v es l e p to nt he i rl i g ht sf r o m pr e j udi c i ngt her i g ht so ft hi r dpa r t i e swhoha v epl a c e dr e l i a nc e o nt hei nac t i o no ft heor i g i nalpar t i e sandt he i rs uc c e s s o r s i ni nt e r e s t . ” 69

70

71

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Sub s t a nt i a l l yt h es amea sSe c t i o n2 ,Rul e1o ft heo l dRul e so fCo ur t .  Made j av s .Pat c ho,   123SCRA540[ 1983] . 71  Me j i adeLuc asv s .Gamponi a,   1 00Phi l .2 77[ 1 95 6] . 69

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 Ac ar ef ule xami nat i onoft her ec or ds ,ho we ver ,r e veal st hatpe t i t i onerwasi nf ac tne verr emi s si n purs ui ngi t scaseagai nstres pondentMarc osest hrough everyremedyavai l abl etoi t ,i ncl udi ng t hemot i onf ors ummar yj udgment . Pet i t i onerRepubl i ci ni t i al l yfil edi t smot i onf ors ummaryj udgmentonOct ober18,1996.The mot i onwasdeni edbecaus eoft hependi ngco mpro mi s eagre ementbe t wee nt heMar c os esand pet i t i oner .Butduri ng t hepret ri alc onf erence,t heMarc osesdeni ed owners hi p oft heSwi ss f unds , pr ompt i ng pe t i t i one rt o fil e anot her mo t i on f or s ummar yj udgment now under consi derati onbyt hi sCourt .I twast hesubsequentevent st hatt ranspi redaf t ert heanswerwas fil e d,t he r e f o r e ,whi c hpr e v e nt e dpe t i t i o ne rf r o m fil i ngt heque s t i o ne dmo t i o n.I twa sde fini t e l y notbec ause ofnegl ec tori nact i on t hatpet i t i onerfil ed t he ( se c ond)mot i on f orsummary  j udgmentyear saf t err es pondent s ’ans wert ot hepe t i t i onf orf or f ei t ur e. I ni nvoki ngt hedoct ri neofes t oppelbyl aches,res pondent smustshow notonl yunj ust i fied i na c t i o nb uta l s ot ha ts o meunf a i ri nj ur yt ot he m mi g htr e s u l tunl e s st hea c t i o ni sb ar r e d. Thi s ,r e s p o nde nt sf a i l e dt ob e aro ut .I nf a c t ,dur i ngt hepr e t r i a lc o n f e r e nc e ,t heMa r c o s e s di sc l ai medowners hi poft heSwi ssdeposi t s.Notbei ngtheowners ,ast heycl ai med,res pondent s di dno tha v eanyv es t e dr i g hto ri nt e r e s twhi c hc o ul db eadv e r s e l yaffe c t e db ype t i t i o ne r ’ sa l l e g ed i nac t i o n. 72

Bute venassumi ngf ort hesakeofargumentt hatl acheshadal r eadyse ti n,t hedoc t r i neof es t oppelo rl ac hes doesnotappl y when t he gov er nmentsues as a s ov er ei gn orass er t s government alri ght s .  No rc a ne s t o ppe lv al i da t ea na c tt ha tc o n t r a v e ne sl a wo rp ub l i cp o l i c y .  Asafinalpoi nt ,i tmus tbeemphas i z edt hatl ac hesi sno tamer eques t i on oft i mebuti s pr i nc i pal l yaq ue s t i o no ft hei ne qui t yorunf ai r ne s so fpe r mi t t i ngar i g hto rc l ai mt obee nf o r c e d o ra s 73

74

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 72  D i azv s .Gor r i c ho,   1 03Phi l .2 61[ 1 95 8] . 73

Co l l a dov s .Co ur to fAp pe a l s ,   G. R.No .1 07 7 64 ,Oc t o b e r4 ,2 00 2 ,3 9 0SCRA3 43 ;Se c t i o n1 5,Ar t i c l eXIo ft he1 98 7

Co ns t i t ut i o n. 74 GoTi a nAnv s . Re p ub l i co ft heP hi l i p pi ne s ,   124Phi l .472;17SCRA1053[ 1966] . 254

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s e r t e d .Equi t y demands t hatpet i t i onerRepubl i cs houl d notbe barr ed f r om pur sui ng t he pe o pl e ’ sc a s eag ai ns tt heMa r c o s e s . 75

( 2 )ThePr o pr i e t yo fFo r f e i t ur e

The mat t erofs ummar yj udgmenthavi ng bee nt hus s e t t l ed,t he i s s ue ofwhet her orno t pe t i t i o ne rRe publ i cwasabl et opr o v ei t sc a s ef o rf o r f e i t ur ei nac c o r danc ewi t ht her e qui s i t e so f Sec t i ons2and3ofRA1379nowt akesc ent erst age. Thel aw r ai s est h  p er i maf ac i e   pre sumpt i on t hata propert yi sunl awf ul l yacqui r ed,hence s ubj e c tt of o r f e i t ur e ,i fi t samo unto rv al uei smani f e s t l ydi s pr o po r t i o nat et ot heo ffic i a ls a l ar y and ot herl awf uli nc ome oft he publ i coffic erwho o wns i t .Henc e,Sec t i ons 2 and 6 ofRA 1379  pr o v i de : 76

xxx xxx  F l i ng ofpe t i t i o n. Se c t i o n2 .i —Wheneve rany publ i coffic erorempl o ye e has ac qui r ed duri ng hi s i nc umbenc yan amountorproper t ywhi c hi smani f es t l youtofpr opor t i on t ohi ssal aryassuc h publ i c officerorempl oyeeandt ohi sot herl awf uli ncomeandthei ncomef rom l egi t i matel yacqui redpropert y,sai d  p i maf ac i e propert yshal lbepr esume dr   t ohavebeenunl awf ul l yacqui red. xxx xxx  J nt Se c .6 . udgme . —I ft heres pondenti sunabl et oshow t ot hesat i sf act i on oft hec ourtt hathehas l a wf ul l yac q ui r e dt hepr o pe r t yi nq ue s t i o n,t he nt hec o ur ts ha l lde c l ar es uc hpr o pe r t yi nque s t i o n,f o r f e i t e d i nf avoroft heSt ate,andbyvi rt ueofsuchj udgmentt hepropert yaf ores ai dshal lbecomet hepropert yof  P o vi de d, t heSt at e .r Thatnoj udgmentshal lberenderedwi t hi nsi xmont hsbef or eanygener alel ec t i onor wi t hi nt hre e mont hsbef or e any speci alel ec t i on.The Courtmay,i n addi t i on,r ef ert hi scas et ot he cor res pondi ngExecuti veDepart mentf oradmi ni st rat i veorcri mi nalact i on,orbot h.

From t heabovequot edprovi si onsoft hel aw,t hef ol l owi ngf act smustbeest abl i shed i n order t ha tf o r f e i t ur eo rs e i z ur eo ft heSwi s sd e po s i t sma yb ee ffe c t e d: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 75

Ti j am vs .Si bonghanoy,   23SCRA29[ 1968) .

  “ AnAc tDe c l a r i ngFo r f e i t ur ei nFa v o ro ft heS t a t ea n yPr o p e r t yFo undt oHa v eBe e nUnl a wf ul l yAc q u i r e db yAn y

76

Pub l i cOffic e ro rEmp l o y e ea n dPr o v i d i ngf o rt hePr o c e e d i n gsThe r e f o r , ”a pp r o v e do nJune1 8 ,1 95 5. 255

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1.( 1) owner shi pbythepubl i coffic erofmoneyorpro pert yac qui r eddur i nghi si nc umbency , whet heri tbei nhi snameorot herwi se,and 2.( 2) t heext entt o whi c ht heamountoft hatmoney orproper t y exc eeds ,   i sgr o s s l y i . e . , di s pr o po r t i o nat et o ,t hel e gi t i mat ei nc o meo ft hepubl i co ffic e r . ThatspousesFer di nandandImel daMarc oswer epubl i coffici al sduri ngt het i memat er i alt ot he i nst antc asewasneveri n di sput e.Paragraph 4ofres pondentMarc oses ’answercat egori cal l y admi t t ed t he al l egat i ons i n par agraph 4 oft he pet i t i on f or f orf ei t ur e as t ot he pers onal c i r c ums t anc esofFer di nandE.Marc osasapubl i coffici alwhoser vedwi t houti nt er rupt i onas Congress man,Senator ,SenatePres i dentandPres i dentoft heRepubl i coft hePhi l i ppi nesf rom Dec ember1 ,1965 t oFebr uar y25,1986.Li kewi se,r espondent sadmi t t edi nt hei ranswert he c ont ent sofparagraph 5oft hepet i t i onast ot hepers onalci r c umst anc esofI mel da R.Marc os whoonc ese r ve d asamembero ft h  I e nt e r i m Bat as angPambans af r om 1978t o1984and as Met r o Mani l a Gov er nor ,c onc urr ent l y Mi ni s t erofHuman Set t l ement s ,f r om June 1976 t o Febr uary1986. Res pondentMr s.Marc osal soadmi t t edi n par agraph 10 ofheranswert heal l egat i onsof par agr aph 11 oft he pet i t i on f or f orf ei t ur e whi c hr ef err ed t ot he acc umul at ed sal ari es of r es pondent sFer di nandE.Mar c osandI mel daR.Mar c os . Thec ombi nedacc umul at edsal ari esof t heMarc osc oupl ewer ereflect edi nt heCert i fic at i ondat edMay27,1986i ss uedbyt henMi ni st er ofBudge tandManagementAl ber t oRomul o.   TheCert i ficat i onshowedt hat ,f r om 1966t o1985, Fer di nand E.Mar c osand I mel da R.Mar c oshad ac c umul at ed s al ar i es i nt he amountof P1 , 5 70, 000andP718, 7 50,r e s p ec t i v e l y ,o rat o t alo fP2, 28 8, 750: 77

78

79

80

=ERD'NAND E. MARCOS, AS PRES'DENT 19661976  P60,000H: P660,000 19771984  P100,000H: 800,000 1985  P110,000H: 110,000   P1,570,00 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Pe t i t i o n,Anne x“ D” ,Vo l umeI I ,p .1 08 1.  I bi d. 79  I d. , p .1 06 2 . 77

78

  Ex hi b i t“ S. ”

80

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REPORTS ANNOTATED  Republic vs. Sandiganbayan 'MELDA R. MARCOS, AS M'N'STER  J"( 19761985  P718,000 P75,000H:  I naddi t i ont othei racc umul at edsal ari esf r om 1966t o1985aret heMarc osco upl e’ scombi ned sal ari esf r om January t o February 1986 i nt he amountofP30, 833. 33.Hence,t hei rt ot al accumul at edsal ari esamount edt oP2, 319, 583. 33.Convert edt oU. S.dol l arsont hebasi soft he cor res pondi ng pesodol l arexc hange rat espre vai l i ng duri ng t heappl i cabl e peri od when sai d s a l a r i e swe r er e c e i v e d,t het o t a la mo untha da ne q ui v al e ntv al ueo f$ 30 4, 3 72 . 4 3. Thedol l arequi val entwasarr i vedatbyusi ngt heoffic i alannualr at esofexc hangeoft he Phi l i ppi nepes oand t heUS dol l arf r om 1965 t o1985 aswel last heoffic i almont hl yr at esof exc hangei n Januaryand Febr uary1986 i s sued byt he Cent erf orSt at i s t i c alI nf or mat i on of th e angkoSe  B nt r alngPi l i pi nas . Pr e s c i ndi ngf r o mt hea f o r e s a i dadmi s s i o ns ,Se c t i o n4 ,Rul e1 29o ft heRul e so fCo ur tpr o v i de s t hat :  J c i aladmi s s i ons Se c t i o n4 . udi . —An admi ss i on,ver balo rwr i t t en,madebyapart yi nt hecours eoft he proc eedi ngsi nt hesamecasedoesnotrequi reproo f .Theadmi ss i onmaybecont r adi ct edonl ybyshowi ng t hati twasmadet hroughpal pabl emi s t akeort hatnosuchadmi ss i onwasmade. 81

I ti ss e t t l e dt hatj udi c i aladmi s s i o nsma ybemade :( a)i nt hepl e adi ng sfil e db yt hepa r t i e s ;( b)i n t hec o ur s eo ft het r i ale i t he rbyv e r balo rwr i t t e nmani f e s t a t i o nso rs t i pul a t i o ns ;o r( c )i no t he r s t ag eso fj udi c i alpr o c e e di ngs ,asi nt hepr e t r i alo ft hec as e .Thus ,f ac t spl e ade di nt hepe t i t i o n and answer ,as i nt he c ase atbar ,aredeemed admi ss i ons ofpet i t i oner and r es pondent s, r e s p e c t i v e l y ,whoar eno tpe r mi t t e dt oc o nt r a di c tt he mo rs u bs e q ue nt l yt a keapo s i t i o nc o nt r a r y t oo ri nc o ns i s t e ntwi t hs uc hadmi s s i o ns . Thesum of$304, 372. 43shoul dbehel dast heonl yknownl awf uli nc omeofr espondent ’ ss i nc e t heydi dnotfil eanySt atemento fAss et sandLi abi l i t i es( SAL) ,asrequi redbyl aw,f rom whi c h t hei rnetwort hcoul dbedete rmi ned.Besi des,undert he1935Const i t u82

83

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Sub s t a nt i a l l yt h es a mea sSe c t i o n2 ,Rul e1 29o ft heo l dRul e so fCo ur t .  R me di alLaw Compe ndi um,Vo   Re g a l a do ,e l . I I , 1997e d. ,p.650. 83 nt so nt heRul e so fCourt   Mor an,Comme ,Vo l umeV,1 98 0e d . ,p .6 4. 81

82

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t i on,Fer di nand E.Marc osas Pr es i dentc oul d notr ec ei ve“ any ot heremol umentf r om t he Gover nmentor any ofi t s subdi vi si ons and i ns t rument al i t i es. ”Li kewi s e,under t he 1973 Const i t ut i on,Ferdi nandE.Marco sasPres i dentcoul d“ notrec ei veduri nghi st enur eanyot her emol umentf r om t heGov er nmentoranyot hers ourc e. ”I nf act ,hi smanagementofbusi ness es , l i ket headmi ni st rat i onoff oundat i onst oacc umul atef unds,wasexpres sl yprohi bi t edundert he 1973Const i t ut i on: 84

85

 Ar t i c l eVI I ,Sec .4( 2) —ThePr es i dentandt heVi c ePr es i dents hal lno t ,dur i ngt hei rt enur e,hol danyo t her offic e exc eptwhen ot her wi se pro vi ded i nt hi s Const i t ut i on,nor may t hey prac t i c e any prof es si on, pa r t i c i pa t edi r e c t l yo ri ndi r e c t l yi nt hema na ge me nto fa nyb us i ne s s ,o rbefina nc i a l l yi nt e r e s t e dd i r e c t l yo r i ndi rec t l yi nanycontr actwi t h,ori nanyf ranchi seorspeci alpri vi l egegrant edbyt heGovernmentorany ot hersubdi vi si on,agency ,ori nst rument al i t yt hereof ,i ncl udi ng any governmentowned orcont rol l ed c o r p o r a t i o n .  Ar t i c l eVI I ,Sec .11—NoMe mberoft heNat i onalAs s embl ys hal lappearasc ouns elbef or eanyc our t i nf e r i o rt oac o ur twi t happe l l at ej ur i s di c t i o n,xxx.Ne i t h ers hal lhe ,di r e c t l yori ndi r e c t l y ,bei nt e r e s t e d fina nc i a l l yi na nyc o nt r a c twi t h,o ri na nyf r a nc h i s eo rs p ec i a lpr i v i l e g egr a nt e db yt h eGo v e r nme nt ,o ra ny s ub di v i s i o n,a ge nc y ,o ri ns t r ume nt a l i t yt he r e o fi nc l udi ngan yg o v er nme nto wne do rc o nt r o l l e dc o r p o r a t i o n duri nghi st erm ofoffice .Heshal lnoti nt ervenei nanymat t erbef or eanyofficeoft hegovernmentf orhi s pecuni arybenefit .  Ar t i c l eI X,Sec .7—ThePr i meMi ni s t erandMe mber soft heCabi ne ts hal lbes ubj ec tt ot hepr o vi s i onof Sect i on11,Art i cl eVI I Ihereofandmaynotappearascounselbef oreanycourtoradmi ni st rat i vebody,or ma na gean yb us i ne s s ,o rp r a c t i c ea nypr o f e s s i o n,a nds ha l la l s ob es ub j e c tt os uc ho t h erd i s q ua l i fic a t i o na s maybepro vi dedbyl aw.

The i ro nl ykno wnl a wf uli nc o meo f$ 30 4, 3 72 . 4 3c a nt he r e f o r el e g al l yandf ai r l ys e r v easb as i sf o r de t e r mi ni ngt h ee xi s t e nc eo f  p ar i maf ac i e   c a s eo ff o r f e i t ur eo ft heSwi s sf unds . Respondent sar gue t hatpet i t i onerwas notabl et o es t abl i sh p ar or t he i ma f ac i ecase f f o r f e i t ur eo ft heSwi s sf undss i nc ei tf a i l e dt opr o v et hee s s e nt i a le l e me nt sunde rSe c t i o n3 , par a gr a phs( c ) ,( d)and( e )o fRA1379 .Ast heAc ti sape na ls t at ut e ,i t sp r o vi s i o nsa r e _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Se c t i o n9,Ar t i c l eVI I .   Se c t i o n4( 1) ,Ar t i c l eVI I .

84

85

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ma ndat o r yands ho ul dt husb ec o ns t r ue ds t r i c t l ya ga i ns tt hepe t i t i o ne ra ndl i b er a l l yi nf a v o ro f r es pondentMarc os es . Wehol dt hati twasnotf orpet i t i onert oest abl i sh t heMarco ses ’ot herl awf uli ncomeor i ncomef rom l egi t i matel yacqui redpropert yf ort hepres umpt i on t oappl ybecause,asbet ween pe t i t i o ne ra ndr e s p o nde nt s ,t hel a t t e rwe r ei nab e t t e rp o s i t i o nt okno wi ft he r ewe r es uc ho t h er sourcesofl awf uli ncome.Andi fi ndeedt herewassuc hot herl awf uli ncome,res pondent sshoul d ha v es pe c i fic a l l ys t a t e dt h es amei nt he i ra ns we r .I ns o f a ra spe t i t i o ne rRe pub l i cwa sc o nc e r ne d, i twasenought os peci f yt heknownl awf uli nc omeofres pondent s. Sec t i on 9 of t he PCGG Rul es and Regul at i ons pr o vi des t hat ,i n det er mi ni n gr  p i ma v i de nc eo fi l l g o t t e n we al t h,t hev al ueo ft hea c c umul a t e da s s e t s ,pr o p e r t i e sand o t he r  f ac i ee mate ri alpossess i onsoft hosec over edbyExecuti veOrderNos.1and2mustbeputofproport i on t ot h e no h per so ns.Ther es pondentMarc osco upl edi d notfil eany  k wn l awf uli nc o meofsuc St at ementofAs se t sand Li abi l i t i es( SAL)f r om whi c ht hei rnetwor t hc oul d bedet er mi ned. The i rf a i l ur et ofil et h ei rSAL wa si ni t s e l fav i o l a t i o no fl a wa ndt oal l o wt he mt os uc c e s s f ul l y

assai lt heRepubl i cf ornotpresenti ngt hei rSAL woul dre wardt hem f ort hei rvi ol ati on oft he l aw. Furt her ,cont raryt ot hecl ai m ofres pondent s,t headmi ss i onsmadebyt hem i nt hei rvari ous pl e adi ng sanddo c ume nt swe r ev al i d.I ti so fr e c o r dt h atr e s p onde nt sj udi c i a l l yadmi t t e dt ha tt he moneydepos i t edwi t ht heSwi ssbanksbel ongedt ot hem. We agree wi t h pet i t i oner t hatres pondentMarc os es made j udi c i aladmi ss i ons oft hei r owners hi p oft he subj ec tSwi s s bank deposi t si nt hei r answer ,t he General / Suppl ement al  Agr eement s , Mr s . Mar c os ’Mani f es t at i on and Cons t anc i a dat ed Ma y 5, 1999, and t he Undert aki ngdat edFebruary10,1999.Wet akenot eoft hef actt hatt heAss oci ateJust i cesoft he Sandi ganbayan wer eunani mousi n hol di ngt hatr es pondent shadmadej udi c i aladmi s si onsof t hei ro wners hi poft heSwi ssf unds. I nt hei ranswer ,asi def rom admi t t i ngth e xi   o ft hes ubj e c tf unds ,r e s p onde nt sl i ke wi s e  e s t e nc e admi t t edowne here of .Paragraph22ofres pondent s’ answers t ated: r s hi pt 22.Res pondent sspec i fical l yDENY PARAGRAPH 23i nso f arasi tal l egest hatr es pondent sc l andest i nel y st ashedthecount ry’ sweal t hi nSwi t zer l andandhi dthesameunderl ayersandl ayersoff oundati onsand 259

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r e s p o nde nt s ’af o r e s a i d pr o p e r t i e swe r el a wf ul l y c o r p o r a t ee nt i t i e sf o rb ei ng f a l s e ,t he t r ut hb ei ng t ha t ac q ui r e d.( emphasi ssuppl i ed)

Byq ual i f y i ngt he i ra c q ui s i t i o no ft heSwi s sb ank de po s i t sa sl a wf ul ,r e s p o nde nt sunwi t t i ng l y admi t t edt hei rowners hi pt hereof . RespondentMrs .Marc osal soadmi t t edowner shi poft heSwi ssbankdepos i t sbyf ai l i ngto denyunderoat ht hegenui nenes sanddueexec ut i onofc ert ai nact i onabl edoc ument sbeari ngher s i g na t ur eat t ac he dt ot hepe t i t i o n.Asdi s c us s e de ar l i e r ,Se c t i o n11 ,Rul e8oft he1997Rul esof Ci vi lPr oc edur epro vi dest hatmat er i alaver ment si nt hecompl ai nts hal lbedeemedadmi t t ed whennotspeci fical l ydeni ed. The Gener aland Suppl ement alAgre ement s ex ec ut ed by pet i t i oner and r es pondent s on De c e mb er2 8,1993f ur t he rb ol s t e r e dt hec l ai mo fpe t i t i o ne rRe publ i ct ha ti t sc a s ef o rf o r f e i t ur e waspr ove ni n acc or danc ewi t ht herequi si t esofSec t i ons2 and 3 ofRA 1379.Thewher eas c l ausei nt heGener alAgreementdecl aredt hat : 86

87

88

WHEREAS,t heFI RST PARTY haso bt ai nedaj udgmentf r om t heSwi s sFede r alTr i bunalo nDec ember 21,1990,t hatthe$356mi l l i on bel ongsi n pri nci pl et ot heRepubl i coft hePhi l i ppi nesprovi ded cer t ai n c ondi t i onal i t i esaremet ,bute venaf t er7year s,t heFI RST PARTY hasnotbeenabl etoproc ur eafinal  j udgmentofc onvi c t i onagai ns tt hePRI VATEPARTY.

Whi l et heSuppl ement alAgr ee mentwarr ant ed, t h a t : i nt e ral i a, I nconsi derat i onoft hef or egoi ng,t hepart i esher ebyagre ethatt hePRI VATE PARTY shal lbeent i t l edt o t heequi val entof25% oft heamountt hatmaybe eve nt ual l ywi t hdr awn f r om sai d $356mi l l i on Swi ss d e p o s i t s .

Thest i pul at i onsse tf ort hi nt heGener alandSuppl ement alAgree ment sundeni abl yi ndi c at ed t he mani f esti nt entofres pondent st o ent eri nt o a compromi sewi t h pet i t i oner .Corol l ari l y, r espondent s’wi l l i ngnes st oagreet oan ami c abl eset t l ementwi t ht heRepubl i conl yaffirmed t hei rowners hi poft heSwi ssdeposi t sf ort hesi mpl ereasont hatnoper sonwoul dacqui esc et o anyconces si onovers uchhugedol l ardeposi t si fhedi dnoti nf actownt hem. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Sub s t a nt i a l l yt h es amea sSe c t i o n1 ,Rul e9oft heo l dRul e so fCo ur t .   Anne x“ F 1 ” , Vo l umeI I ,Ro l l o ,p p.1 09 51 09 8. 88   Anne x“ F 2 ” , Vo l umeI I ,Ro l l o ,p p.1 09 91 10 0. 86

87

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Res pondent smake much c api t aloft he pr onounc ementbyt hi sCourtt hatt he Gener aland Suppl ement alAgr ee ment swer enul landvo i d.   Theyi nsi s tt hatnot hi ngi nt hos eagr eement s c oul dt husbeadmi t t edi nevi denc eagai ns tt hem bec auset heys t oodont hesamegroundasan acc ept edofferwhi c h,underSec t i on27,Rul e130  o ft he19 97Rul e so fCi v i lPr o c e dur e ,pr o v i de s t hat“i nc i vi lc ases ,an offerofc ompromi sei snotan admi ss i on ofany l i abi l i t y and i snot admi s s i b l ei ne v i de nc ea ga i ns tt heo ffe r o r . ” We find no mer i ti nt hi sc ont ent i on.The dec l arat i on ofnul l i t y ofsai d agree ment swas premi sed on t hef ol l owi ng const i t ut i onaland st atut oryi nfirmi t i es:( 1)t hegrantofc ri mi nal i mmuni t yt ot heMarc oshei r swasagai ns tt hel aw;( 2)t hePCGG’ sc ommi t mentt oexe mptf r om a l lf o r mso ft a xe st hepr o p e r t i e st ober e t a i ne db yt heMa r c o sh ei r swa sag ai ns tt heCo ns t i t ut i o n; and ( 3)t he gover nment ’ sundert aki ng t oc auset he di smi ss alofal lc asesfil ed agai nstt he Marc os espendi ngbef or et heSandi ganbayanandot herc ourt sencr oac hedont hepower soft he  j udi c i ar y .Ther e as o nsr e l i e dupo nb yt heCo ur tne v e ri nt hel e a s tb i te v e nt o uc h e do nt hev e r ac i t y and t r ut hf ul ne s s ofr e sponde nt s’admi ss i on wi t hr es pec tt ot he i r owne r shi p oft he Swi ss  f unds . Besi des,havi ngmadecer t ai n admi ss i onsi nt hos eagree ment s,re spondent scannotnow denyt hatt heyvol unt ari l yadmi t t edowni ngt hesubj ectSwi ssf unds,not wi t hst andi ngt hef act t hatt heagreement st hemsel veswerel aterdecl arednul landvoi d. Thef ol l owi ngobservat i onofSandi ganbayan Just i ceCatal i noCast añeda,Jr .i nt hedeci si on dat edSept ember19,2000c oul dnothavebeenbet t ers ai d: 89

90

xxxThedecl arati onofnul l i t yoft het woagreement sr enderedt hesamewi t houtl egaleffect sbuti tdi d notdet ractf rom t headmi ssi onsoft herespondent sc ont ai nedt herei n.Ot herwi sest ated,t headmi ssi ons madei nsai dagreement s,asquot edabove,r emai nbi ndi ngont her espondent s. 91

 A wr i t t en s t at ementi snone t hel es sc ompet entasan admi s s i on e ven i fi ti sc ont ai ned i na do c ume ntwhi c hi sno ti t s e l fe ffe c t i v ef o r _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 89

Chave zv s. Pr e si denti alCommi ss i ononGoodGove r nment ,   299SCRA744,[ 1998] .

  Sub s t a nt i a l l yt h es a mea sSe c t i o n2 4,Rul e1 30o ft heo l dRul e so fCo ur t .   Anne x“ HH” ,Vo l umeI I I ,Ro l l o ,p .2 20 5 .

90

91

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t hepurposef orwhi c hi ti smade,ei t herby reason ofi l l egal i t y,ori ncompet encyofapart y t he r e t o ,o rb yr e a s o no fno tbe i ngs i g ne d,e x e c ut e do rde l i v e r e d.Ac c o r di ng l y ,c o nt r a c t sha v ebe e n hel dasc ompet entevi denceofadmi ss i ons,al t hought heymaybeunenf orc eabl e. Thet es t i monyofr espondentFer di nandMarc os,Jr .duri ngt heheari ngont hemot i onf ort he appro valoft heCompromi seAgreementonApri l29,1998al sol entcr edencet ot heal l egat i onsof pet i t i onerRepubl i ct hatr es pondent sadmi t t edowner shi poft heSwi ssbankacc ount s.Wequot e t hes al i e ntpo r t i o nso fFe r di nandJr . ’ sf o r malde c l ar a t i o nsi no pe nc o ur t : 92

ATTY. =ERNANDO$ M. Mc%, !! :%" B hB (: )(< h PC>> Ch)( M<(<<%# C. >"(<"(!% =. MARCOS, JR.$ Y. ' hB h! B: )(: )(< ( &c h Ch)(. ATTY. =ERNANDO$ F%"#! :%" c## h( h & )(< %cc"! PJ >ARC'TORENA$ '( c%((c%( h h ATTY. =ERNANDO$ '( c%((c%( h h %(<%(< #? % c%)%) h B%" c (! : PC>> <( :%" &)#: =. MARCOS, JR.$ Th (" %& %" )(<  %##: c%(c(! h (<%%( %! chB(< %) ?(! %& <)( ( h Ph#( <%B()( (! h Mc% &)#:. Th !c"%( h #! " % h c%)%) <)(  (!  : %" h( c%"(# A:. S)%( M( + + +.93 + + + ++ + + + + ATTY. =ERNANDO$ Fh  :%" c%( h( A:. M( (&%)! :%" %& h %#: =. MARCOS, JR.$ M: c%( % ## %& h %ch  h ' ) #: %(,   #: %(,   B: )"ch #: ( ch %& %#"%( % h  %#) %& h &)#: (! (: %ch _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

  3 1AC. J . S. ,Pa r . 2 84 ,p.7 21 .

92

  Anne x“ I ” ,Vo l umeI I ,Ro l l o ,p p.1 17 71 17 8.

93

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 Republic vs. Sandiganbayan h h ( )! ",  hB ((!. A(! % ): c%(  h )  h ' hB #: ... h: (% M: h  h %( h ## &(##: " ( (! % h %#). +++ +++ +++ ATTY. =ERNANDO$ c##:, h  h " )%"( %& h  ( h (? PJ >ARC'TORENA$ S%,   #?(< %" #I"!  h J" Ch =. MARCOS, JR.$ F##, c##:, (: . A(:h(< h  "(! h Mc% () ( (: %& h (? ( S#(! hch ): (c#:  (% ch. +++ +++ +++ PJ >ARC'TORENA$ + + + Fh !! :%" !% ( %h %!, &  (< ! %& h c%(c ( c%((c%( hh =. MARCOS, JR.$ ' ")! h   <(((< % )#)( h <)( c" h  &%!! h%">  c%(c(!, h h <)(  &c! (! h   <(((< % )#)(  (! h   %"c %& &c%( % ) c" ' h%"
95

96

Ferdi nandJr . ’ spronouncement s,t akeni ncont extandi nt hei rent i re t y,wereac onfirmati onof r e s p o nde nt s ’ r e c o g ni t i o no ft he i ro wne r s h i po ft heSwi s sb ankde po s i t s .Admi s s i o nso fapa r t yi n

hi st e s t i mo nya r er e c e i v ab l eag ai ns th i m.I fapa r t y ,a sawi t ne s s ,de l i b er a t e l yc o nc e d e saf a c t , such concess i on has t he f orc e ofa j udi ci aladmi ss i on. I ti s appar entf r om Fer di nand Jr . ’ s t es t i monyt hatt heMarc osf ami l yagreedt onegot i at ewi t ht hePhi l i ppi negover nmenti nt he hopeoffinal l yput t i nganendt ot heprobl emsbeset 97

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 94  I bi d,p.1 181 . 95  I bi d,p.1 188 . 96  I bi d,p.1 201 .

  2 9AAm.J ur . ,Pa r . 7 70 ,p .1 37 .

97

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t i ngt heMarc osf ami l yregardi ngt heSwi ssacc ount s.Thi swasdoubt l es sl yanacknowl edgment ofowners hi pont hei rpart .Therul ei st hatt het est i monyont hewi t nesss t andpart akesoft he na t ur eo faf o r ma lj udi c i a la dmi s s i o nwhe napa r t yt e s t i fie sc l e a r l yandune q ui v o c a l l yt oaf a c t whi c hi specul i arl ywi t hi nhi sownknowl edge. I nherMani f est ati on  dat edMay26,1998,r es pondentI mel daMarc osf urt her mor ere veal ed t hef o l l o wi ng : 98

99

Thatr espondentI mel daR.Marc osowns90% oft hesubj ec tmatt eroft heaboveenti t l edcas e,bei ngthe s o l eb ene fic i a r yo ft hedo l l a rde po s i t si nt hena meo ft hev ar i o usf o unda t i o nsa l l e g e di nt hec a s e ; Tha ti nf a c to nl y10 %o ft hes ub j e c tma t t e ri nt heab o ve e nt i t l e dc a s ebe l o ng st ot hee s t a t eo ft hel a t e Pr es i dentFer di nandE.Marc os ; xxx xxx xxx

Respondent s’ owner shi poft heSwi ssbankacc ount sasborneoutbyMr s.Marc os’ mani f es t at i on i sasbri ghtassunl i ght .Andhercl ai mt hatshei smerel yabenefici aryoft heSwi ssdeposi t si s bel i ed by her own si gnat ur eson t he appended c opi esoft he document ssubst ant i at i ng her owner shi p oft hef undsi nt henameoft hef oundat i ons.Asal re adyment i oned,shef ai l ed t o speci fical l y deny under oath t he aut hent i ci t y ofs uc h document s,especi al l yt hosei nvol vi ng “ Wi l l i am Saunder s”and“ JaneRyan”whi c hac t ual l yr ef er r edt oFer di nandMarc osandI mel da Ma r c o s ,r e s p e c t i v e l y .Tha tf a i l ur eo fI me l daMa r c o st os pe c i fic a l l yde nyt hee xi s t e nc e ,muc hl e s s t hegenui nenessanddueexec ut i on,oft hei ns t rument sbeari nghers i gnat ure ,wast ant amount t oaj udi ci aladmi ss i onoft hegenui nenessanddueexecut i onofsai di nst rument s,i nacc ordance wi t hSe c t i o n8 ,Rul e8 o ft he1 99 7Rul e so fCi v i lPr o c e dur e . Li kewi se,i n herConst anci a  dat edMay6, 1999,I mel da Marc ospray edf ort heappr ov alof t heCompromi seAgreementandt hesubsequentr el easeandtr ansf eroft he$150mi l l i ont ot he r i g ht f ulo wne r .Shef ur t he rma det hef o l l o wi ngma ni f e s t a t i o ns : 100

101

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   3 1AC. J . S. ,Pa r . 3 11 ,p.7 95 .   Anne x“ M” ,Vo l umeI I ,Ro l l o ,p p.1 26 0 1 2 6 1 . 100   Sub s t a nt i a l l yt h es amea sSe c t i o n8 ,Rul e8o ft heo l dRul e so fCo ur t . 101   Anne x“ S” ,Vo l umeI I ,Ro l l o ,p p.1 50 61 50 7 . 98

99

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xxx xxx xxx 2.TheRepubl i c’ scauseofact i on overthef ul lamounti si t sf orf ei t urei nf avoroft hegovernmenti f t heMar c o s e sd e f e ndt hati ti sal e g i t i mat eas s e t f o undt obei l l g o t t e n.Ont heo t he rha nd, .The r e f o r e ,b ot h pa r t i e sha v eani nc h o at er i g hto fo wne r s h i po v e rt heac c o unt .I fi tt ur nso utt ha tt heac c o unti so fl a wf ul or i gi n,t heRepubl i cmay yi el dt ot heMarc ose s.Convers el y,t heMarc osesmustyi el dt ot heRepubl i c. ( i t a l i c ss uppl i e d) xxx xxx xxx 3.Consi st entwi t ht hef or egoi ng,andt heMarc ose shavi ngc ommi t t edt hemsel vest ohel pi ngt hel ess f or t unat e,i nt hei nt er es tofpeac e,r ec onci l i at i onanduni t y ,def endantMADAM I MELDA ROMUALDEZ MARCOS,i nfirm abi danc et here by ,here byaffir msheragr eementwi t ht heRepubl i cf ort her el eas eand t ransf eroft heUSDol l ar150mi l l i onf orproperdi sposi t i on,wi t houtprej udi cet othefinaloutc omeoft he l i t i g at i o nr e s p e c t i ngt h eo wne r s hi po ft her e ma i nde r .

 Agai n,t heabo ves t at ement swer ei ndi c at i veofI mel da’ sadmi s s i onoft heMar c os es ’ o wner s hi pof t he Swi ssdeposi t sas i nf act“ t he Marc osesdef end t hati t( Swi ssdeposi t s)i sa l egi t i mate ( Ma r c o s )a s s e t . ” Ont heot herhand,r es pondent sMari aImel daMarc os Manot oc ,Fer di nandMarc os ,Jr .and Mari aI r eneMar c os Ar anet afil edamot i on  onMay4,1998aski ngt heSandi ganbayant opl ace ther   ( Swi s sde po s i t s )i nc e s us t o di al e g i s : 102

7 .I n de e d,t hepr e v a i l i ngs i t ua t i o ni sf r a ug htwi t hda ng e r !Unl e s st heaf o r e s a i dSwi s sd epo s i t sar ep l a c e d us t o di al e g i so i nc r wi t hi nt he Court ’ s prot ect i ve mant l e,i t s di ssi pat i on ormi sappropri ati on by t he pe t i t i o ne rl o omsasadi s t i nc tp os s i bi l i t y .

Suc hdi spl ayofdeep,pers onali nt er es tc anonl yc omef r om someonewhobel i evest hathehasa ma r k eda ndi nt i ma t er i g hto v e rt hec o ns i de r a bl edo l l a rde po s i t s .Tr ul y ,b yfil i ngs ai dmo t i o n,t he Ma r c o sc hi l dr e nr e v e a l e dt he i ro wne r s h i po ft hes a i dde po s i t s . Last l y,t heUndert aki ng ent er edi nt obyt hePCGG,t hePNB andt heMar c osf oundat i onson February10,1999,c onfirmedt heMarc os es’owner shi poft heSwi ssbankdepos i t s.Thesubj ec t Undert aki ngbroughtt ol i ghtt hei rr eadi nesst opaythehumanri ght svi ct i msoutoft hef unds hel di nesc ro wi nt hePNB.I tst ated: 103

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Anne x“ L ” , Vo l umeI I ,Ro l l o ,p .1 25 6.

102

  Anne x“ P 1 ” ,Vo l umeI I ,Ro l l o ,p .1 28 9.

103

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WHEREAS,t heRepubl i coft he Phi l i ppi ness ympathi zeswi t ht hepl i ghtoft hehuman r i ght svi c t i mspl ai nt i ffsi nt heaf o r e me nt i o ne dl i t i g at i o nt hr o ug ht heSe c o ndPar t y ,de s i r e st oas s i s ti nt hes at i s f ac t i o no f t he j udgmentawardsofsai d human ri ght svi ct i mspl ai nt i ffs,by re l easi ng,assi gni ng and orwai vi ng US$150 mi l l i on oft he f unds hel di n es c r o w undert he Es c r ow Agr ee ment sdat ed Augus t14,1995,

al t hought heRepubl i ci snotobl i gate dt odosounderfinalj udgment soft heSwi sscourt sdat edDec ember 10and19,1997,andJanuary8,1998; WHEREAS,t heThi r d Part yi sl i kewi sewi l l i ng t or el ease,assi gn and/ orwai veal li t sri ght sand i nt eres t soversai dUS$150mi l l i ont ot heaf orement i onedhumanri ght svi ct i mspl ai nt i ffs.

 Al lt ol d,t hef or egoi ngdi s qui s i t i on negat est hec l ai m ofr es pondent st hat“ pe t i t i onerf ai l edt o pr o v et ha tt he yac q ui r e do ro wnt heSwi s sf unds ”a ndt ha t“ i twa so nl ybyar b i t r a r i l yi s o l a t i ng andt aki ngcert ai nst atement smadebypri vater espondent soutofc ont extt hatpet i t i onerwas abl et ot r e att he s easj udi c i aladmi s s i o ns . ”TheCo ur ti sf ul l ya war eo ft her e l e v anc e ,mat e r i a l i t y andi mpl i cat i onsofeverypl eadi nganddocuments ubmi t t edi nt hi scase.Thi sCourtcar ef ul l y sc rut i ni zedt heproof spr es ent edbyt hepart i es.Weanal yzed,ass ess edand wei ghed t hem t o asc ert ai ni feac h pi ec e ofevi denc e ri ght f ul l y qual i fied as an admi ss i on.Owi ng t ot he f arr eachi ng hi st or i caland pol i t i cali mpl i c at i ons oft hi s cas e,we co nsi dered and exami ned, i ndi v i dua l l ya ndt o t a l l y ,t hee v i de nc eo ft hepa r t i e s ,e v e ni fi tmi g htha v eb or d e r e do nf a c t ua l adj udi cat i on whi ch,by aut hori t yoft herul esand j uri sprudence,i snotusual l y doneby t hi s Court .Ther ei snodoubti n ourmi nd t hatr es pondentMar c os esadmi t t ed o wner s hi p oft he Swi ssbankdeposi t s. Wehaveal waysadher edt ot hef ami l i ardoct r i net hatanadmi ss i onmadei nt hepl eadi ngs c annotbeco nt r over t edbyt hepart ymaki ngsuchadmi ss i onandbec omesc oncl usi veonhi m,and t ha ta l lpr o o f ss ub mi t t e db yhi mc o nt r a r yt h e r e t oo ri nc o ns i s t e ntt he r e wi t hs ho ul d“ b ei g no r e d , whet heran obj ect i on i si nt erposedbyt headversepart yornot .Thi sdoct ri nei sembodi edi n Sect i on4,Rul e129oft heRul esofCourt : 104

 J c i aladmi s s i o ns SEC.4 . udi . —An admi ss i on,ver balo rwr i t t en,made bya par t yi nt hecours eoft he proc eedi ngsi nt hesamecase,doesnotre qui reproof .Theadmi ss i onmaybecontr adi ct edonl ybyshowi ng t hati t _ _ _ _ _ _ __ _ _ _ _ _ _ _ 104

Sa nt i a g ov s . Del o sSa nt o s ,   61SCRA146[ 1974] .

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wasmadet hroughpal pabl emi s t akeort hatnosuchadmi ss i onwasmade. 105

I nt he abse nce ofa c ompel l i ng r eason t ot he c ont r ary,r es pondent s’j udi ci aladmi ss i on of owners hi poft heSwi ssdeposi t si sdefini t el ybi ndi ngont hem. Thei ndi vi dualand se parat eadmi ss i onsofeac hr es pondentbi nd al loft hem pur suantt o Sect i ons29and31,Rul e130oft heRul esofCourt :  A s s i o n byc o par t ne ro rage nt SEC.29 . dmi . —Theactordecl arat i on ofapart neroragentoft hepart y wi t hi nt hescopeofhi saut hori t yandduri ngtheexi st enceoft hepart ners hi poragency ,maybegi veni n evi denceagai nstsuchpart yaf t ert hepart ners hi poragencyi sshownbyevi denceot hert hansuchactor o r decl arati on.Thesamerul eappl i est otheact de c l ar a t i o no faj o i nto wne r ,j o i ntd ebt o r ,o ro t he rpe r s o n  j oi nt l yi nt er es t edwi t ht hepar t y . 106

 A s s i o nbypr i vi e s SEC.31 . dmi . —Whe r eo nede r i v e st i t l et opr o p er t yf r o ma no t he r ,t heac t ,de c l a r at i o n, o romi s s i o no ft hel a t t e r ,whi l eho l di ng t het i t l e ,i nr e l a t i o nt ot hepr o p er t y ,i se v i d enc ea ga i ns tt he f or mer . 107

Thede c l a r at i o nso fape r s o na r eadmi s s i b l eag ai ns tapa r t ywhe ne v e ra“ pr i v i t yo fe s t a t e ”e x i s t s b e t we e nt hede c l a r anta ndt hepa r t y ,t het e r m“ pr i v i t yo fe s t a t e ”g e ne r a l l yde no t i ngas uc c e s s i o n i nr i g ht s .Conse quent l y ,an admi s s i on ofone i n pr i vi t y wi t h a part yt ot he r ec or di s c ompet ent .Wi t hout doubt ,pri vi t y exi s t s among t he r es pondent si nt hi sc ase .And wher e s e v er a lc o par t i e st ot her e c o r dar ej o i nt l yi nt e r e s t e di nt hes ubj e c tmat t e ro ft hec o nt r o v er s y ,t he admi ss i onofonei scompet entagai nstal l . 108

109

110

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Sub s t a nt i a l l yt h es a mea sSe c t i o n2 ,Rul e1 29o ft heo l dRul e so fCo ur t .

105

  Sub s t a nt i a l l yt h es a mea sSe c t i o n2 6,Rul e1 30o ft heo l dRul e so fCo ur t .   Sub s t a nt i a l l yt h es a mea sSe c t i o n2 8,Rul e1 30o ft heo l dRul e so fCo ur t .

106

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  Am Jur2dPar .824,p.211.   3 1AC. J . S. ,Pa r . 3 22 ,p.8 17 . 110  I bi d,p. 81 4. 108

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Respondent si nsi stt hatt heSandi ganbayan i scorr ecti n rul i ngt hatpet i t i onerRepubl i chas f ai l e dt oe s t abl i s h ar   c a s ef o rt hef o r f e i t ur eo ft heSwi s sde po s i t s .  p i maf ac i e Wedi sagree .Thesudden t urnaroundoft heSandi ganbayanwasre al l yst range,t osayt he l e as t ,a si t sfindi ng sa ndc o nc l us i o nswe r eno tb or n eo utb yt hev o l umi no usr e c o r dso ft hi sc a s e . Sec t i on 2 ofRA 1379 expl i c i t l yst at est hat“ wheneverany publ i coffic erorempl oy eehas acqui redduri nghi si ncumbencyanamountofpropert ywhi c hi smani f est l youtofpr oport i ont o hi ss al aryass uc hpubl i coffic erorempl oyeeandtohi so t herl awf uli ncomeandthei ncomef rom l egi t i mat el y acqui re d propert y,sai d propert y shal lbe pres ume dr o have bee n  p i ma f ac i et unl a wf ul l yac q ui r e d .xxx ” Theel ement swhi c hmus tco ncurf ort h i sr pres umpt i ont oappl yare:  p i maf ac i e 1.( 1) t heoffenderi sapubl i cofficerorempl oyee; 2.( 2) he musthave ac qui r ed a c onsi der abl e amountofmoney orpro per t y dur i ng hi s i nc umbency;and 3.( 3) sai d amounti smani f es t l y outofproport i on t ohi ssal aryassuch publ i coffic eror empl oye eand t ohi sot herl awf uli nc omeand t hei nco mef r om l egi t i mat el yacqui r ed p r o p e r t y . I ti sundi sput edt hatspouse sFerdi nandandImel daMarc oswer ef ormerpubl i coffic er s.Henc e, t hefir s te l e me nti sc l e ar l ye x t a nt .

Thes ec ond el ementdeal swi t ht he amounto fmoneyorpr oper t y ac qui r ed byt he publ i c offic erdur i nghi si nc umbenc y .TheMarc osc oupl ei ndubi t abl yacqui r edandownedpro pert i es duri ngt hei rt er m ofoffic e.I nf act ,t hefivegroupsofSwi ssac co unt swer eadmi t t edl yownedby t hem.Therei sproofoft heexi st enceandowners hi poft heseasse t sandpropert i esandi tsuffices t oc ompl ywi t ht hese c ondel ement . Thet hi r dr equi r ementi smeti fi tc an be shown t hatsuc h ass et s,money orpro pert yi s ma ni f e s t l yo uto fpr o p o r t i o nt ot h epub l i co ffic e r ’ ss a l a r ya ndhi so t he rl a wf uli nc o me .I ti st he pr o o fo ft hi st hi r de l e me ntt ha ti sc r uc i a li nde t e r mi ni ngwhe t he r ar   pre s umpt i onhas  p i maf ac i e be e ne s t abl i s he di nt hi sc a s e . 268

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Pet i t i onerRepubl i cpresentednotonl yasc hedul ei ndi cat i ngt hel awf uli ncomeoft heMarc os spouse sdur i ngt hei ri nc umbenc ybutal soevi denc et hatt heyhad hugedeposi t sbeyo ndsuc h l awf uli nc ome i n Swi s s banks undert he namesoffive di ffer entf oundat i ons.We bel i ev e pe t i t i o ne rwa s ab l et oe s t ab l i s ht h er umpt i on t hatt he asse t sand propert i es  p i ma f ac i epres ac qui r ed by t he Mar c os eswer emani f e s t l y and pat e n t l y di s p r o p o r t i o nat et ot hei r aggregat e s a l a r i e saspub l i co ffic i a l s .Ot he r wi s es t a t e d ,pe t i t i o ne rpr e s e nt e de no ug he v i de nc et oc o nv i nc e ust hatt he Marc os eshad dol l ardepos i t samount i ng t o US $356 mi l l i on r epr es ent i ng t he bal anc e oft he Swi s s ac c ount s oft he five f oundat i ons,an amountway ,way bey ond t hei r aggregat el egi t i mat ei nc omeofonl y US$304, 372. 43 dur i ng t hei ri nc umbenc y asgov er nment offici al s. Consi deri ng,t heref or e,t hatt het ot alamountoft heSwi ssdeposi t swasconsi der abl youtof propor t i on t ot he known l awf uli nc ome oft he Marc os es ,t he pre sumpt i on t hatsai d dol l ar deposi t swereunl awf ul l yacqui redwasdul yest abl i shed.I twassuffici entf ort hepet i t i on f or f orf ei t ur et ost at et heappro xi mat eamountofmoneyandpropert yacqui r edbyt heres pondent s, andt hei rt ot algovernmentsal ari es.Sect i on9oft hePCGG Rul esandRegul ati onss t ates :  Pr i maFac i eEvi de nc e . —Anyaccumul ati onofasset s,propert i es,andot hermater i alposses si onsoft hose pers onsc ove r edbyExec ut i veOr dersNo.1andNo.2,whoseval uei soutofpropor t i ont ot hei rknown  p i maf ac i e l awf uli ncomei sr   deemedi l l got t enweal t h.

I ndeed,t hebur den ofpro ofwason t her es pondent st odi sput et hi spr es umpt i onandshow by cl earandconvi nci ngevi dencet hatt heSwi ssdeposi t swerel awf ul l yacqui redandt hatt heyhad o t he rl e g i t i ma t es o u r c e so fi nc o me .A pr e s u mp t i o n p i sr   proofoft hef actpresumedand, i maf ac i e unl e s st hef a c tt hu sr   e s t a bl i s he db yl e g alpr e s u mp t i o ni sdi s p r o v e d,i tmus ts t a nda s  p i maf ac i e proved. RespondentMr s.Marc osar guest hatt hef or ei gnf oundat i onsshoul dhavebeeni mpl eadedas t heywerei ndi spensabl epart i eswi t houtwhom noc ompl et edet ermi nat i onoft hei ss uesc oul dbe made.Sheasser t st hatt hef ai l ureofpet i t i onerRepubl i ct oi mpl ead t hef oundat i onsrendered t hej udg me ntv o i da st hej o i nde ro fi ndi s 111

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _  R e sofCour tAnno t at e d,   Mi ri am Def ensorSant i ago , ul   1 99 9e d. ,p.8 57 .

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pensabl epart i eswas s ai e x e r c i s eo fj udi c i alpo we r .Fur t he r mo r e ,t heno ni nc l us i o no f nequano n  t hef orei gn f oundat i onsvi ol atedt hecondi t i onspres cr i bed byt heSwi ssgovernmentr egardi ng t hedepos i toft hef undsi nesc r ow,depri vedt hem oft hei rdayi nc ourtanddeni edt hem t hei r r i g ht sunde rt heSwi s sc o ns t i t ut i o na ndi nt e r na t i o na ll a w. The Courtfinds t hat pet i t i oner Republ i c di d not er ri n not i mpl eadi ng t he f or ei gn f o unda t i o ns .Se c t i o n7 ,Rul e3o ft he19 97Rul e so fCi v i lPr o c e dur e ,   t akenf r om Rul e19boft he  Amer i c anFeder alRul esofCi vi lPr oc edur e,pr o vi desf ort hec ompul s or yj oi nderofi ndi s pens abl e part i es.Gener al l y,ani ndi spensabl epart ymustbei mpl eadedf ort hecompl et edet ermi nat i onof t hes ui t .Ho we v e r ,f ai l ur et oj o i nani ndi s pe ns a bl epa r t ydo e sno td i v e s tt hec o ur to fj ur i s di c t i o n s i nc et her ul er e g ar d i ngi ndi s p e ns a bl epa r t i e si sf o unde do ne q ui t a bl ec o ns i de r a t i o nsandi sno t  j ur i s di c t i onal .Thus ,t hec our ti sno tdi ves t ed ofi t spo wert or endera dec i s i on e ven i nt he a bs e nc eo fi ndi s p e ns a bl ep ar t i e s ,t ho ug hs uc hj udg me nti sn o tb i ndi ngo nt heno nj o i ne dpa r t y .  Ani ndi s pens abl epar t y  hasbeendefinedaso ne: 112

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[ who ]mus th av eadi r e c ti nt e r e s ti nt hel i t i g at i o n;a ndi ft hi si nt e r e s ti ss uc ht ha ti tc a nno tb es e p ar a t e d f r o mt ha to ft hepa r t i e st ot hes ui t ,i ft hec o ur tc a nno tr e nde rj us t i c eb e t we e nt hepar t i e si nhi sab s e nc e ,i f t hede c r e ewi l lha v ea ni nj ur i o use ffe c tupo nhi si nt e r e s t ,o ri ft hefina ld e t e r mi na t i o no ft hec o nt r o v e r s yi n hi sa b s e nc ewi l lb ei nc o ns i s t e ntwi t he q ui t ya ndgo o dc o ns c i e nc e .

The r ear et woe s s e nt i a lt e s t so fa ni ndi s p e ns a bl epa r t y :( 1 )c a nr e l i e fb ea ffo r d e dt hepl a i nt i ff wi t houtt hepres enceoft heot herpart y?and( 2)cant hecasebedeci dedoni t smeri t swi t hout pr e j udi c i ngt her i g ht soft heo t he rpa r t y ?  Ther ei s,however ,nofixedf ormul af ordet er mi ni ng whoi sa ni ndi s p e ns a bl epa r t y ;t hi sc a n 116

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Ro l l o ,p p.2 25 52 26 5. mp ul s o r yj o i nde ro fi ndi s p e ns a b l ep ar t i e s   Se c .7 .Co . —Part i esi ni nter es twi t houtwhom nofinaldet er mi nat i on c a nb eha do fa na c t i o ns h al lb ej o i ne de i t he ra sp l a i nt i ffso rd e f e nd ant s ,Thes a mea sSe c t i o n7 ,Rul e3o ft heo l dRul e s o fCo ur t . 114   59AM.JUR.2DPARTI ES§97( 2000) . 115 Supran o t e3§13( 2 00 0) . 116 Supra  c ke tv s .Pai ne no t e3c i t i n  gPi ,230Ga786,199SE2d223. 112

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o nl ybede t e r mi ne di nt hec o nt e x ta ndb yt hef ac t so ft hepar t i c ul ars ui to rl i t i g at i o n. I nt hepr es entc as e,t her ewasan admi s s i onbyr es pondentI mel daMar c osi nherMay26, 1998Mani f es t at i onbef or et heSandi ganbayant hats hewast hesol ebenefici aryof90% oft he subj ec tmat t eri nc ont ro ver sywi t ht her emai ni ng10% bel ongi ng t ot hees t at eofFer di nand Mar c os .  Vi e wedagai ns tt hi sadmi s s i on,t hef or ei gnf oundat i onswer eno t   i ndi s pe ns a bl epar t i e s . Thei rnonpart i ci pati oni nt heproceedi ngsdi dnotpre ventt hecourtf rom deci di ngt hecaseon 117

i t sme r i t sanda c c o r di ngf ul lr e l i e ft ope t i t i o ne rRe pub l i c .Thej udg me nto r de r i ngt her e t ur no f t he$ 35 6mi l l i o nwa sne i t he ri ni mi c a lt ot hef o unda t i o ns ’i nt e r e s t sno ri nc o ns i s t e ntwi t he q ui t y and goo dc onsc i enc e.The admi s s i on ofr es pondentI mel da Mar c oso nl yc onfir medwhatwas al r eady gener al l yknown:t hatt hef oundat i onswer ees t abl i shed prec i sel yt ohi de t hemoney s t o l e nb yt heMa r c o ss p o us e sf r o m pe t i t i o ne rRe pub l i c .I tne g at e dwha t e v e ri l l us i o nt he r ewa s ,i f any,t hatt hef orei gnf oundat i onsownedevenanomi nalpartoft heass et si nquest i on. Therul i ngsoft heSwi ssc ourtt hatt hef oundat i ons,asf ormalowner s,mustbegi ven an opport uni t yt o part i c i pat ei nt he pro c eedi ngshi nged on t heass umpt i on t hatt heyowned a nomi nalshareoft heasset s .  Butt hi swasal readyref ut edbynol esst han 118

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Ro l l o ,p .1 26 0.Ma ni f e s t a t i o n:

117

“ Co me sn o wu nd e r s i g ne dc o u ns e lf o rt her e s p o nd e ntI me l d aR.Ma r c o s ,a ndb e f o r et hi sHo n o r a bl eCo ur t ,mo s tr e s p e c t f u l l yma ni f e s t s :

1 .I . Th atr e s p o nd e ntI me l d aR.Ma r c o so wns9 0 %o ft hes u bj e c t ma t t e ro ft h eab o v e e nt i t l e dc a s e ,b e i ngt h e s o l ebe ne fic i ar yo f t hed o l l a rde p o s i t si nt hen ameo ft hev a r i o usF o unda t i o ns   al l e g e di nt hec a s e ;

2 .I I . Tha ti nf a c to n l y1 0 % o ft hes u b j e c t ma t t e ri nt heab o v e e nt i t l e dc a s eb e l o ng st ot h e Es t a t eo ft hel a t ePr e s i d e nt Fer di nandE.Marc os; ”

  Rol l o,p.2464,quot edf ro mt heDec ember18,2000memor andum ofre spondentMrs .Marc os :

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“ Ont heo t h e rha nd ,t heo pp o ne n tt ot heap pe a l ,f o r ma l l yt h eo wn e ro ft heas s e t st ob es e i z e dandr e s t i t ut e d ,h a sno tb e e ni n v o l v e di n t hec o l l e c t i ngp r o c e d ur ep e nd i ngi nt hePh i l i p pi n e s .Ev e nt ho ug hs u c ho p po n e nti sno t hi ngb utal e g a lc o n s t r uc t i o nt ohi d et het r u e o wne r s h i pt ot hea s s e t so ft heMa r c o sf a mi l y ,t he yne v e r t he l e s sa r e 271

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Mrs .Marco shersel f .Thus,shecannotnow arguet hatt herul i ngoft heSandi ganbayanvi ol ated t hec o ndi t i o nss e tb yt heSwi s sc o u r t .Thedi r e c t i v egi v e nb yt heSwi s sc o ur tf o rt hef o unda t i o ns t opart i ci pat ei nt heproceedi ngswasf ort hepurposeofprot ect i ngwhate vernomi nali nt er est t he ymi ghthavehad i nt he as s et sasf or malo wner s .Buti nas muc h ast hei rowner s hi p was subsequent l yrepudi at edbyImel daMarcos ,t heycoul dnol ongerbeconsi deredasi ndi spensabl e pa r t i e sa ndt h ei rp ar t i c i pa t i o ni nt hep r o c e e di ng sb e c ameunne c e s s a r y . I ne hi s Cour trul ed t hat i mpl eadi ng t he firms whi c h ar e  R publ i cv s .Sandi ganbay an, t ther oft heact i onwasunneces sary: e s 119

“ And as t o c or por at i ons or gani ze d wi t h i l l got t en weal t h, but ar e not t hemse l ve s gui l t y of mi sappropri ati on,f raudorot heri l l i ci tc onduct —i n ot herwords,t hecompani est hemsel vesarenott he obj ectort hi ngi nvol vedi nt heact i on,t herest hereof —t herei snoneedt oi mpl ead t hem ei t her .I ndeed, t hei ri mpl eadi ngi snotproperon t hest rengt h al oneoft hei rhavi ngbeen f ormedwi t hi l l got t en f unds, a bs e nta nyo t h e rpa r t i c ul a rwr o ng do i ngo nt he i rp ar t... Suc h showi ng ofhavi ng been f ormed wi t h,orhavi ng r ece i ved i l l got t en f unds,howevers t r ong or convi nci ng,doesnot ,wi t houtmore,warranti dent i f yi ngthecor porati onsi nquest i onwi t ht hepers onwho f ormedormadeuseoft hem t ogi vet hecol ororappearanceofl awf ul ,i nnocentacqui si t i on t oi l l egal l y onus amass edweal t h—att hel eas t ,notsoaspl aceo nt heGove rnmentt he   ofi mpl eadi ngt hef ormerwi t h

t hel att eri n act i onst orec oversuc h weal t h.Di st i ngui shed i nt ermsofj uri di calpers onal i t yand l egal c ul pa bi l i t yf r o mt he i re r r i ngme mb er so rs t o c k ho l de r s ,s a i dc o r p o r a t i o nsa r eno tt he ms e l v e sgui l t yo ft he s i nso ft hel at t e r ,o ft hee mbe z z l e me nt ,as po r t a t i o n,e t c . ,t hatg av er i s et ot h eGo v er nme nt ’ sc a us eo fac t i o n f orrec overy;t hei rcreat i on ororgani zati on wasmerel yt heres ul toft hei rmembers’( orst oc khol ders’ ) mani pul ati onsandmaneuverst oconcealt hei l l egalori gi nsoft heasset sormoni esi nvest edt herei n.I n e s t hi sl i g ht ,t he yar es i mpl yt her i nt heac t i o nsf o rt her e c o ve r yo fi l l e gal l yac q ui r e dwe al t h,andt he r ei s ,i n pri nci pl e,nocauseofact i onagai nstt hem andnogroundt oi mpl eadt hem asdef endant si nsai dact i ons. ” _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ e nt i t l e dt oah e ar i ngasf a ra st h ep r o c e e di n gsa r ec o n c e r n e dwi t ha c c o u nt swhi c har en omi n al l yt h ei r s .Theg ua r a nt e e soft heRe p ub l i c o ft hePhi l i p pi ne st he r e f o r emus ti nc l ud et hepr o c e s sr i g ht sno to n l yo ft hede f e nd ant sb uta l s oo ft hef o r ma lo wne r so ft hea s s e t st obe de l i v er e d. ”

  240SCRA376,469[ 1995] .

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J us tl i k et hec o r p o r a t i o nsi nt heaf o r e me nt i o ne dc a s e ,t hef o r e i g nf o unda t i o nshe r ewe r es e tup t oconcealt hei l l egal l yacqui redf undsoft heMarc osspouses .Thus,t heyweresi mpl yt he n r e si t heac t i o nf o rr e c o v e r yo fi l l g o t t e nwe al t handdi dno th av et obei mpl e ade df o rl a c ko fc a us eo f act i onorgro undt oi mpl eadt hem.  As s umi ngarguendo,   ho we v e r ,t ha tt hef o unda t i o nswe r ei ndi s p e ns a bl epa r t i e s ,t hef a i l ur eo f pe t i t i o ne rt oi mpl e a dt he m wa sac ur a b l ee r r o r ,a she l di nt hepr e v i o us l yc i t e dc a s e R o fe publ i c vs .Sandi ganbayan: 120

“ Eveni nt hosec aseswherei tmi ghtreas onabl ybearguedt hatt hef ai l ur eoft heGover nmentt oi mpl ead t hesequest er edco rpor at i onsasdef endant si si ndeedaproc edur alabber at i on,aswher esai dfirmswer e al l egedl yused,andact i vel ycooperat edwi t ht hedef endant s,asi nst rument sorcondui t sf orconversi onof pub l i cf undsandpr o p e r t yo ri l l i c i to rf r a udul e nto b t e nt i o no ff a v o r e dg o v er nme ntc o nt r a c t s ,e t c . ,s l i g ht r e fle c t i o nwo ul dne v e r t he l e s sl e a dt ot h ec o nc l us i o nt ha tt hede f e c ti sno tf a t a l ,b uto n ec o r r e c t i b l eunde r  e g. ,Sec appl i c a bl e adj e c t i v er ul e s —. t i on 10,Rul e 5 oft he Rul esofCourt[ spec i f yi ng t he r emedy of amendmentdur i ng t r i alt o aut hor i zeortoconf or m t ot he evi denc e] ;Sec t i on 1,Rul e 20 [ gove rni ng amendment s bef or et ri al ] ,i n re l ati on t ot he rul e re spec t i ng omi ss i on of socal l ed nec ess ary or i ndi s p ens a bl epa r t i e s ,s e to u ti nSe c t i o n1 1,Rul e3o ft heRul e sofCo ur t .I ti sr e l e v anti nt hi sc o nt e x tt o a dv e r tt ot h eo l df a mi l i a rdo c t r i ne st ha tt heo mi s s i o nt oi mpl e ads uc hpa r t i e s“ i same r et e c hni c a lde f e c t whi chcanbecuredatanyst ageoft heproc eedi ngsevenaf t erj udgment ” ;andt hat,part i cul arl yi nt hecase o fi ndi s pe ns abl epar t i e s ,s i nc et he i rpr e s enc eandpar t i c i pat i o ni se s s e nt i alt ot hev er yl i f eo ft h eac t i o n,f o r wi t houtt hem no j udgmentmaybe r ender ed,amendment soft he c ompl ai nti n or dert oi mpl eadt hem shoul dbef reel yal l owed,evenonappeal ,i nf actevenaf t errendi t i onofj udgmentbyt hi sCourt ,wherei t appearst hat t he c ompl ai ntot herwi se i ndi cat es t hei ri dent i t y and c haract eras such i ndi spensabl e p a r t i e s . ” 121

 Al t hought her ear edec i dedc as eswher ei nt henonj oi nderofi ndi s pens abl epar t i esi nf ac tl edt o t hedi smi ss aloft hesui tort heannul mentofj udgment ,suchcasesdonotj i bewi t ht hematt erat hand.Thebet t ervi ew i st hatnonj oi nderi snotaground t odi smi sst hesui torannult he

 j udgment .Ther ul eonj oi nderofi ndi s pens abl epar t i esi sf oundedonequi t y .Andt hes pi r i toft he l a wi sr e _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Supra.

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 I d. , atpp.4 70 4 71 . 121

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flect edi nSect i on11,Rul e31 o ft he1 99 7Rul e so fCi v i lPr o c e dur e .I tp r o hi b i t st hedi s mi s s a lo f asui to nt hegr oundofnonj oi nderormi sj oi nderofpart i esandal l owst heamendmentoft he compl ai ntatanyst ageoft heproc eedi ngs,t hroughmot i onoronorderoft hecourtoni t sown i ni t i at i ve. Li kewi se,j uri sprudenceont heFederalRul esofProc edure,f rom whi c hourSect i on7,Rul e 31   o ni ndi s p e ns a bl epa r t i e swa sc o p i e d,a l l o wst h ej o i nde ro fi ndi s p e ns a bl epa r t i e se v e na f t e r  j udgmenthasbeenent er edi fs uc hi sneededt oaffor dt hemo vi ngpar t yf ul lr el i ef . Mer edel ayi n fil i ngt hej oi ndermot i on doesnotnecess ari l yres ul ti nt hewai veroft heri ghtasl ongast he de l a yi se x c us a bl e .Thus,r es pondentMr s.Marc oscannotc or r ec t l yarguet hatt hej udgment renderedbytheSandi ganbayanwasvoi dduet ot henonj oi nderoft hef orei gnf oundat i ons.The courthadj uri sdi c t i ont orenderj udgmentwhi ch,eveni nt heabsenceofi ndi spensabl epart i es, wasbi ndi ngonal lt hepart i esbef orei tt hough notont heabsentpart y.   I fs her e al l yf e l tt hat shecoul dnotbegrant edf ul lrel i efduet ot heabsenceoft hef orei gn f oundati ons,sheshoul d havemovedf ort hei ri ncl usi on,whi c hwasal l owabl eatanyst ageoft heproc eedi ngs.Shenever di d.I nst eadsheassai l edt hej udgmentrendered. I nt hef aceofundeni abl eci r cumst ance sandt heaval anc heofdocument aryevi denceagai nst t he m,r e s p o nde ntMa r c o s e sf a i l e dt oj us t i f yt hel a wf ulna t ur eo ft he i rac q ui s i t i o no ft hes a i d a s s e t s . 122

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_ _ _ _ _ _ _ _ _ _ _ _ _ _ _   Sub s t a nt i a l l yt h es a mea sSe c t i o n1 1,Rul e3o ft heo l dRul e so fCo ur t .  Mi j o i nde randnonj oi nde ro fpar t i e s   Se c .11 . s . —Ne i t he rmi s j o i nd e rno rno nj o i nd e ro fp a r t i e si sg r o undf o rt he d i s mi s s a lo fa na c t i o n .Pa r t i e sma ybedr o p pe do ra d de db yo r d e ro ft hec o u r to nmo t i o no fa nypa r t yo ro ni t so wn i ni t i a t i v ea ta n ys t a geo ft hea c t i o na ndons u c ht e r msa sa r ej us t .An yc l a i ma ga i ns tami s j o i ne dp ar t yma ybes e v e r e d a ndp r o c e e d e dwi t hs e p a r a t e l y . 124   Sa mea sSe c t i o n7 ,Rul e3o ft heo l dRul e so fCo u r t . 125 Supra  no t e3§2 65( 2 0 00 ) . 126  I d. ryvs .Smi t h  c i t i ngGent ( CA5Fl a)487F2d571,18FRServ2d221,l at erapp( CASFl a)538F2d1090,onreh ( CA5Fl a)544F2d900,hol di ngt hataf ai l uretore questt hej oi nderofadef endantwasexcusedwheret hemovi ng p ar t y ’ sf o r me rc o uns e l ,whoha dr e s i s t e dt h ej o i nd er ,a br u pt l ywi t hd r e w hi sa p pe a r a nc ea nds ub s t i t ut ec o u ns e lmo v e d pr o mp t l yt oj o i nt hec o r p o r at i o n. 127 Supra  no t e3 . 122

123

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SUPREME COURT REPORTS ANNOTATED  Republic vs. Sandiganbayan

He nc e ,t heSwi s sde po s i t ss ho ul db ec o ns i de r e di l l g o t t e n we a l t ha ndf o r f e i t e di nf a v o roft he St at ei nacc or dancewi t hSec t i on6ofRA1379:  J nt SEC.6 . udgme . —I ft here spondenti sunabl et oshow t ot hesat i sf act i on oft heco urtt hathehas l a wf ul l ya c qui r e dt hepr o p er t yi nq ue s t i o n,t he nt hec o ur ts ha l lde c l a r es uc hpr o p e r t yf o r f e i t e di nf a v o rof t heSt ate,andbyvi rt ueofsuchj udgmentt hepropert yaf ores ai dshal lbecomepropert yoft heSt atexxx.

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Fi nal l y,pet i t i onerRepubl i ccont ends t hatt he Honorabl e Sandi ganbayan Pres i di ng Just i ce Fr anc i sGarc hi t or enac ommi t t edgraveabuseofdi sc re t i oni n re ver si nghi msel font heground t hat t he or i gi nal copi es of t he aut hent i cat ed Swi ss deci si ons and t hei r aut hent i c at ed t r ansl at i ons wer e notsubmi t t ed t ot he c ourt l i er PJ Gar c hi t or ena had quot ed a quo.Ear e x t e n s i v e l yf r o mt heuno ffic i alt r a ns l a t i o no fo neo ft he s eSwi s sd e c i s i o nsi nh i sone dat ed  p nc i a  Jul y 29,1999 when he deni ed t he mo t i on t or el eas e US$150 Mi l l i on t ot he human r i ght s v i c t i ms . Whi l ewearei nr eal i t yperpl exedbysuchani nco mprehensi bl echangeofheart ,t her emi ght nevert hel essnotbeanyrealneedt obel abort hei ss ue.Thepresentat i onoft heaut hent i cat ed t ransl ati ons oft he ori gi nalcopi es oft he Swi ss deci si on was not o rt he pub l i c deri gueurf r espondentt omakefindi ngsoff actandr eachi t sconcl usi ons.I n short ,t heSandi ganbayan’ s de c i s i o nwa sno tde pe nde nto nt hede t e r mi na t i o no ft heSwi s sc o ur t s .Fo rt ha tma t t e r ,ne i t he ri s t hi sCo ur t ’ s . Therel easeoft heSwi ssf undshel di nesc ro wi nt hePNB i sdependentsol el yont hedec i si on o ft hi sj ur i s d i c t i o nt ha ts a i df undsbe l o ngt ot hepe t i t i o ne rRe pub l i c .Wha ti si mpo r t a nti so ur o wna s s e s s me nto ft hes uffic i e nc yo ft hee v i de nc et or ul ei nf a v o ro fe i t he rp e t i t i o ne rRe pub l i co r r e s p o nde ntMa r c o s e s .I nt hi si ns t a nc e ,de s p i t et h ea bs e nc eo ft heaut he nt i c a t e dt r a ns l a t i o nso f t heSwi s sd ec i s i o ns ,t hee vi de nc eo nhandt i l t sc o nv i nc i ng l yi nf a v oro fpe t i t i o ne rRe publ i c . WHEREFORE, t he pe t i t i on i s her eby GRANTED. The as s ai l ed Res ol ut i on of t he Sandi ganbayan dat ed January 31,2002 i s SET ASI DE.The Swi s s depos i t s whi c h wer e t ransf err edt oandarenow 275

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deposi t ed i n es c r ow att hePhi l i ppi neNat i onalBank i nt hees t i mat ed aggregat eamountof US$658, 175, 373. 60 as ofJanuary 31,2002,pl us i nt er es t ,ar e her eby f orf ei t ed i nf avorof pe t i t i o ne rRe pub l i co ft hePhi l i ppi ne s . SOORDERED.  Davi de , Jr .( C. J. ) ,Be l l o s i l l o ,Pang ani ban,Ynar e s Sant i ag  A o, us t r i aMar t i ne z ,Car pi o   andTi c o n c u r .  Mo r al e s ,Cal l e j o ,Sr . , Az c una ng a ,JJ. ,   andVi   I nt her e s ul t .  Puno t ug ,JJ. , andSando   Onoffic i all eave. Qui s umbi ng  v al Gut i e r r e z ,JJ. , .Whi l ePres i dent i alLegalCounsel ,Iact edaschai rofacommi t t ee Car p i o ,J. ,Nopart t ha to v e r s a wt het r a ns f e ro ft he s ef undst ot h ePhi l i ppi ne s .