Gonzaga v. Gov. Garcia, Jr.

 

Gonzaga v. Gov. Garcia, Jr.

G.R. No. 201914 & 202156

April 26, 2023

 

FACTS:

                Sometime in 2004, the provincial government of Bataan caused the tax delinquency sale of the properties of Sunrise Paper Products Industries, Inc. (Sunrise). Without any other bidder at the public auction, the province acquired the immovables consisting of a paper plant with its machineries and equipment and the parcels of land where it is erected. To annul the auction sale and to prevent the province from consolidating in its name the titles over the properties, Sunrise, on April 21, 2005, filed a petition for injunction docketed as Civil Case No. 8164 in the Regional Trial Court (RTC) of Bataan. Consequently, the other creditors of Sunrise intervened in the proceedings.

During the pendency of the case, the province represented by the governor, respondent herein, entered into a compromise agreement with Sunrise on June 14, 2005. On the same date, the Sangguniang Panlalawigan, through a unanimous resolution, approved the same. Subsequently, the parties moved for the dismissal of the civil case, not on account of the settlement, but on the ground that the court did not acquire jurisdiction for failure of any of the parties to comply with Section 267 of Republic Act (R.A.) No. 7160, or the Local Government Code (LGC) of 1991. Upon the same ground, the parties no longer sought judicial approval of the compromise agreement.

However, the trial court refused to dismiss the case and, on June 15, 2007, rendered its Decision declaring, among others, that the auction sale was invalid, that the transfer certificates of titles in the name of the province were falsified, and that the compromise agreement executed by the parties was illegal. In G.R. No. 181311, currently pending with this Court, the province questioned, among others, the said decision of the trial court. By virtue of a Complaint-Affidavit filed by Gonzaga, herein petitioner, against Gov. Garcia, et al, herein respondents, were charged with the violation of Section 3 (e) and (g) of Anti-Graft and Corrupt Practices Act. In a Petition to Suspend Proceedings on the Ground of Existence of Prejudicial Question, respondents prayed that the Ombudsman hold in abeyance its investigation of the averments in the complaint-affidavit and supplemental complaint-affidavit because the same were intricately related to a case which was pending before this Court, docketed as G.R. No. 181311.

The Ombudsman resolved the case and found that there was no prejudicial question that would justify the suspension of the conduct of preliminary investigation. The following are the reasons: a) The issues in the Petition for Certiorari are not similar, not even intimately related to the issue in this case. b) the eventual resolution by the SC of the issues raised in the special civil action for certiorari, even if in their favor, is irrelevant to and would not necessarily determine the finding by this forum whether respondents have probably committed the crimes of which they are charged. c) the complainants in this case are not even parties to the Civil Case the decision of which the respondents in their petition before the SC seek to annul.

 

ISSUE:

                Whether or not there is a prejudicial question.

 

HELD:

                No. At the outset, the issue on the propriety of suspending the proceedings before the Ombudsman, on the ground of the existence of a prejudicial question, had already been rendered moot by virtue of the Court's Decision dated November 24, 2021 in G.R. No. 181311. In the said Decision, the Court ruled, inter alia, that the auction sale made by the Province of Bataan was null and void; that the Province of Bataan and Sunrise Paper Products, Inc. were jointly and solidarily liable to pay damages in the amount of P120,000,000.00 to one Victor G. Gawtee whose machinery and equipment were taken as part of the auction sale; and that the provincial officials of Bataan, respondents included, cannot be held liable for damages because their specific acts were not established by the plaintiff in that case. Jurisprudence teaches us that a prejudicial question comes into play generally in a situation where civil and criminal actions are pending and the issues involved in both cases are similar or so closely related that an issue must be pre-emptively resolved in the civil case before the criminal action can proceed. 33 Since the civil case has already been resolved, the issue of whether there is a prejudicial question, as would necessitate a pause in the criminal proceedings involving the respondents, is now moot and academic. Indeed, a moot and academic case is one that ceases to present a justiciable controversy by virtue of supervening events, so that a declaration thereon would be of no practical value.

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