GR 138437; (November, 2008) (Digest)
G.R. No. 138437 . November 14, 2008.
RAMON J. QUISUMBING, petitioner, vs. SANDIGANBAYAN (FIFTH DIVISION), REPUBLIC OF THE PHILIPPINES and PHILIPPINE JOURNALIST, INC., represented by the PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT, respondents.
FACTS
The Presidential Commission on Good Government (PCGG) filed a complaint (Civil Case No. 0035) for the recovery of ill-gotten wealth, including properties of Philippine Journalist, Inc. (PJI). During the pendency of this case, PCGG-appointed members of the PJI Board executed a Contract of Sale and a Deed of Absolute Conveyance covering PJI’s Mabini lots in favor of Ramon J. Quisumbing, as trustee. The Sandiganbayan nullified these contracts for lack of prior court approval and PCGG consent. This nullification was sustained by the Supreme Court in G.R. No. 106209, which held PJI was a sequestered corporation and its assets were in custodia legis. Subsequently, the PCGG and PJI filed a complaint (Civil Case No. 0172) against Quisumbing and the board members for reconveyance of the Mabini lots. Quisumbing moved to dismiss, arguing the Republic was not a real party in interest as the lots were owned by PJI, a separate entity, and were not properly sequestered. The Sandiganbayan denied the motion, holding the Republic was a real party in interest as it represented the government’s effort to recover ill-gotten wealth. Quisumbing filed a petition for certiorari assailing the Sandiganbayan’s denial of his motion to dismiss.
ISSUE
Whether the Republic of the Philippines is a real party in interest in the action for reconveyance of the Mabini lots.
RULING
The Supreme Court DISMISSED the petition. The Court held that the Republic of the Philippines is a real party in interest. A real party in interest is the party who stands to be benefited or injured by the judgment. Executive Order No. 2 explicitly shows that the recovery of ill-gotten wealth is undertaken for and in behalf of the Republic and the Filipino people. The Republic, through the PCGG, is the entity tasked with recovering assets illegally acquired during the Marcos regime. Therefore, the Republic has a substantial material interest in the outcome of the suit for reconveyance of the allegedly ill-gotten properties. The Court further noted that while the denial of a motion to dismiss is an interlocutory order not ordinarily subject to certiorari, it set aside technicalities to resolve the issue given the case’s lengthy pendency.