ChanRobles Virtual law Library

[G.R. No. 147435. November 9, 2004]

RP vs. SAN MIGUEL CORP.

Gentlemen:

Quoted hereunder, for your information, is a resolution of this Court dated NOV 9 2004 .

G.R. No. 147435 (REPUBLIC OF THE PHILIPPINES, represented by the Presidential Commission on Good Government vs. SAN MIGUEL CORPORATION, RAUL DE GUZMAN, ALLAN LEE, ESPIRIDION LAXA, BENJAMIN PAULINO, and HERMOGENES TANTOCO .)

Before us is a petition for quo warranto, mandamus and prohibition filed by the Republic of the Philippines, represented by the Presidential Commission on Good Government (PCGG), against the above-named respondents.

During the incumbency of then President Joseph Estrada, the PCGG, upon his instructions, nominated Raul De Guzman, Allan Lee, Espiridion Laxa, Benjamin Paulino, and HermogenesTantoco, respondents, as members of the San Miguel Corporation (SMC) Board of Directors on the basis of sequestered SMC shares, alleged ill-gotten wealth of President Ferdinand E. Marcos. Thereupon, they were duly elected as Directors of the SMC Board. When President Gloria Macapagal-Arroyo assumed office, she directed these respondents to resign from their positions as she had designated new PCGG nominees to the SMC Board. However, respondents refused to resign, prompting the PCGG to file the instant petition against them. SMC and its Corporate Secretary were also impleaded as respondents for refusing to recognize the new PCGG nominees.

As a quo warranto suit, the petitioner alleges that respondents Raul De Guzman, Allan Lee, Espiridion Laxa, Benjamin Paulino, and Hermogenes Tantoco have no legal right to sit as members of the SMC Board of Directors. As a special civil action for mandamus, petitioner asks us to order them to vacate their seats in the SMC Board of Directors; and to direct respondents SMC and its Corporate Secretary to recognize Renato C. Valencia, Octavio V. Espiritu, Jr., Leo S. Alvez, Hector L. Hofile�a, and Franklin G. Fuentabella as the new nominees. As an action for the issuance of the extraordinary writ of prohibition, petitioner prays that the same respondents be enjoined from continuing to exercise their functions as members of the SMC Board of Directors.

In their comment, respondents contend, among others, that the issue in this case has become moot in view of the resignation of the individual respondents from the assailed positions.

Indeed, considering that the respondent directors have long resigned as members of the SMC Board of Directors, this case has become moot.

WHEREFORE, the petition is DISMISSED.

Puno and Tinga, JJ., on official leave.

Corona, J., on leave.

Very truly yours.

(Sgd.) MA. LUISA D. VILLARAMA

Acting Clerk of Court

Back to Home | Back to Main

CLICK HERE FOR THE LATEST SUPREME COURT JURISPRUDENCE