Liban vs. Gordon

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Concepts/ Keywords: Petition of Quo Warranto for Gordon for being have been created or the emoluments thereof

ments thereof increased during the term


both a Senator and Chairman of the Philippine National Red Cross for which he was elected.
(PNRC) is dismissed.
PNRC Privately owned, funded, and run charitable organization. Sen. MAIN ISSUE
Gordon did not forfeited his seat. Must be Read with the 1/18/2011 Whether the office of the PNRC Chairman is a government office or an
ruling LibanVGordon for the Motion for Reconsideration office in a government-owned or controlled corporation for purposes of
the prohibition in Section 13, Article VI of the Constitution.
LIBAN vs. GORDON
[G.R. No. 175352. July 15, 2009.] CARPIO, J p: HELD
We declare that the office of the Chairman of the Philippine National
FACTS Red Cross is not a government office or an office in a government-
Petition to declare Senator Richard J. Gordon (respondent) as having owned or controlled corporation for purposes of the prohibition in
forfeited his seat in the Senate. Petitioners are officers of the Board of Section 13, Article VI of the 1987 Constitution. We also declare that
Directors of the Quezon City Red Cross Chapter while respondent is Sections 1, 2, 3, 4 (a), 5, 6, 7, 8, 9, 10, 11, 12, and 13 of the Charter of the
Chairman of the Philippine National Red Cross (PNRC) Board of Philippine National Red Cross, or Republic Act No. 95, as amended by
Governors. Presidential Decree Nos. 1264 and 1643, are VOID because they create
During respondent's incumbency as a Senate member, he was elected the PNRC as a private corporation or grant it corporate powers.
Chairman of the PNRC.
Petitioners contends that by accepting the chairmanship of the PNRC Petitioners filed an action for usurpation of public office against
Board of Governors, respondent has ceased to be a member of the Senate respondent, a public officer who allegedly committed an act which
as provided in Section 13, Article VI of the Constitution, which reads: SEC. constitutes a ground for the forfeiture of his public office. Clearly, such
13. No Senator or Member of the House of Representatives may hold any an action is for quo warranto, specifically under Section 1 (b),Rule 66 of
other office or employment in the Government, or any subdivision, the Rules of Court.Quo warranto is generally commenced by the
agency, or instrumentality thereof, including government-owned or Government as the proper party plaintiff. However, under Section 5, Rule
controlled corporations or their subsidiaries, during his term without 66 of the Rules of Court, an individual may commence such an action if
forfeiting his seat. Neither shall he be appointed to any office which may he claims to be entitled to the public office allegedly usurped by another,
in which case he can bring the action in his own name. The person designation by the government. Under this criterion, and as discussed
instituting quo warranto proceedings in his own behalf must claim and earlier, the government does not own or control PNRC.
be able to show that he is entitled to the office in dispute, otherwise the Although the PNRC is created by a special charter, it cannot be
action may be dismissed at any stage. In the present case, petitioners do considered a government-owned or controlled corporation in the
not claim to be entitled to the Senate office of respondent. Clearly, absence of the essential elements of ownership and control by the
petitioners have no standing to file the present petition. government. In creating the PNRC as a corporate entity, Congress was in
fact creating a private corporation. However, the constitutional
PNRC is a privately owned, privately funded, and privately run prohibition against the creation of private corporations by special
charitable organization. The PNRC is not a government-owned or charters provides no exception even for non-profit or charitable
controlled corporation. corporations. Consequently, the PNRC Charter, insofar as it creates the
An overwhelming four-fifths majority of the PNRC Board are private PNRC as a private corporation and grants it corporate powers, is void
sector individuals elected to the PNRC Board by the private sector for being unconstitutional. Thus, Sections 1, 2, 3, 4 (a), 5, 6,
members of the PNRC. The PNRC Board exercises all corporate powers 7, 8, 9, 10, 11, 12, and 13 of the PNRC Charter, as amended, are void.
of the PNRC. The PNRC is controlled by private sector individuals. The other provisions of the PNRC Charter remain valid as they can be
Decisions or actions of the PNRC Board are not reviewable by the considered as a recognition by the State that the unincorporated PNRC
President. The President cannot reverse or modify the decisions or is the local National Society of the International Red Cross and Red
actions of the PNRC Board. Neither can the President reverse or Crescent Movement, and thus entitled to the benefits, exemptions and
modify the decisions or actions of the PNRC Chairman. It is the PNRC privileges set forth in the PNRC Charter. The other provisions of the
Board that can review, reverse or modify the decisions or actions of the PNRC Charter implement the Philippine Government's treaty obligations
PNRC Chairman. This proves again that the office of the PNRC Chairman under Article 4 (5) of the Statutes of the International Red Cross and Red
is a private office, not a government office. Crescent Movement, which provides that to be recognized as a National
A government-owned or controlled corporation must be owned by the Society, the Society must be "duly recognized by the legal government of
government, and in the case of a stock corporation, at least a majority of its country on the basis of the Geneva Conventions and of the national
its capital stock must be owned by the government. In the case of a non- legislation as a voluntary aid society, auxiliary to the public authorities
stock corporation, by analogy at least a majority of the members must be in the humanitarian field."
government officials holding such membership by appointment or
In sum, we hold that the office of the PNRC Chairman is not a government
office or an office in a government-owned or controlled corporation for
purposes of the prohibition in Section 13, Article VI of the 1987
Constitution. However, since the PNRC Charter is void insofar as it
creates the PNRC as a private corporation, the PNRC should incorporate
under the Corporation Code and register with the Securities and
Exchange Commission if it wants to be a private corporation.

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