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     Volume: XX – No. 1
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   2007
     Volume: XIX – No. 1

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     Volume: XIX – No. 4

 
   2006
     Volume: XV - No. 1
     Volume: XVIII - No. 2
     Volume: XVIII - No. 3
     Volume: XVIII - No. 4

Volume: XVIII - No. 2
Date: June 30, 2006

BOI extends compliance BOI extends compliance

The final deadline granted by the Bureau of Immigration to all registered aliens to replace their paper-based ACRs with the hi-tech, microchip-based ACR I-Card was last April 15, 2006.

In view, however, of numerous requests by those who failed to apply by reason of circumstances beyond their control, and to achieve maximum compliance with the ACR I-Card project the Bureau of Immigration decided to grant all registered aliens an inextendible grace period of 120 calendar days or until August 13, 2006 to comply with the ACR I-Card requirement. Thereafter, any registered alien found in possession of a paper-based ACR shall be deemed not properly documented and subject to proceedings under pertinent provisions of Immigration Act of 1940 and/or Alien Registration Act of 1950, as amended (Memo Order No. AFF-06-007).

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Notice of loss or damage of goods required within 24 hours

Article 366 of the Code of Commerce requires that a claim of alleged damages suffered by the goods while in transport must be filed with respondent-carrier immediately or within twenty four (24) hours from the time the goods were received.

The purpose of said requirement is to compel the consignee of goods entrusted to a carrier to make prompt demand for settlement of alleged damages so that the carrier will be able to verify all such claims at the time of delivery or within twenty-four hours thereafter, and if necessary fix responsibility and secure evidence as to the nature and extent of the alleged damages to the goods. Thus, the carrier is protected by affording it the opportunity to investigate a claim while the matter is still fresh so as to safeguard itself from false and fraudulent claims.

Moreover, the time limitation actually constitutes a condition precedent to the accrual of a right of action against a carrier for loss of, or damage to, the goods. The shipper or consignee must allege and prove the fulfillment of the condition i.e. that it filed its claim with the carrier within 24 hours from the time the goods were received. Otherwise, no right of action against the carrier can accrue in favor of the former (G.R. 136888, 6/29/05).

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Philippines IPO launches pilot-testing program of TM Online Filing System

The Intellectual Property Office of the Philippines recently launched The Pilot Testing Program of TM Online, or Trademarks Online Filing System. As a part of the eGovernment Program of the Philippines IPO, TM Online is a web-based system that facilitates the electronic filing of applications for the registration of trademarks, service marks, geographic indications and other marks of ownership in the Philippines that is available 24 hours a day, 7 days a week.

Only two firms in the Philippines have been allowed to participate in the Pilot Testing Program of TM Online. All applications filed during the pilot testing stage will be considered as having been actually filed with the Philippines IPO.

There are no changes in the applicable rules. The Intellectual Property Code (Republic Act No. 8293) and the Trademark Rules will govern all applications that are filed electronically. The trademark applications will be likewise examined in accordance with the rules and procedures that govern applications that are personally filed by applicants and/or trademark agents in the IPO. Moreover, applications filed using TM Online will benefit from the 20% reduction in Official Filing Fees at the time of filing the trademark application.

The new filing system is expected to attract and encourage more trademark owners to file applications in the Philippines. Over the years, the total number of applications received by the IPO has steadily increased:

2004 – 12,347 (5,405 foreign; 6,942 local)

2003 – 12,032 (5,077 foreign;

6,955 local)

2003 – 11,137 (4,814 foreign;

6,323 local)

2001 -- 9,904 (4,703 foreign;

5,291 local)

Further improvements on the examination processes, streamlining of registration procedures and continued modernization of facilities are in the agenda of the Philippines IPO.

Considering that only COMPLETE applications will be accepted, IPO advises it is important that information on the following items are available upon filing: 

  1. Name of application; country of incorporation, if body corporate; principal place of business;
  2. Enumeration of goods and/or services to be covered;
  3. Colors to be claimed, if any;
  4. Basis of application, which can be either one of the following:
    1. Intent-to-Use
    2. Local Use
    3. Foreign application or registration. If priority is to be claimed, application number, filing date and country filed;
    4. Illustration of mark in jpg format and with the following dimensions: 2” x 3”

The Power of Attorney should be filed by the trademark agent within 60 days from filing date of the application, while the certified true copy of the foreign application from which convention priority will be claimed should be filed within 3 months from the filing date of the application.

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Rules on enlistment of foreign retirees liberalized  

In order to liberalize the requirements governing the retirees’ program of the Philippine Retirement Authority, the PRA Board of Trustees recently promulgated amendments to the rules and regulations for retiree enlistment to make the program more attractive to foreign retirees. Quoted hereunder are the changes in the rules which took effect on 28 May 2006:

1. Special Reduced Deposit -- For principal applicants who are applying for Special Resident Retiree (SRR) Visa the minimum qualifying deposit is reduced as follows:

  • 35-49 yrs. Old. – From US$75,000 to US$50,000
  • 50 yrs. old and up

From US$50,000 to US$20,000

  1. Holding Period – Retirees enrolled under this program may be allowed to withdraw their deposit for “conversion” into an investment after a holding period of thirty (30) days from the issuance date of SRR Visa.  
  1. Visitorial Fee – For every conversion of the retiree’s deposit into an investment, the concerned retiree will pay the visitorial fee as follows:  
  • Deposit: US$20,000

Annual Visitorial Fee: US$500or peso equivalent

  • Deposit: US$50,000

Annual Visitorial Fee: US$750

or peso equivalent

  1. Areas of Investment – The areas of investments for visa holders under the Special Reduced Deposit Scheme shall strictly be limited to the following:
  • Purchase, acquisition and ownership of a condominium unit;
  • Long-term lease of house and lot, condominium or townhouse which should not be a period shorter than 20 years;
  • Purchase, acquisition and ownership of golf or country club share/s; or
  • Investment in shares of stocks of corporations duly registered in the Philippine Stock Exchange.

All applications for conversion of deposit shall be submitted to the Board of Trustees for its approval.

  1. Applicability of the Program – The program is an experimental project for six (6) months and shall apply ONLY to new applicants. Previous SRRV holders CANNOT re-apply for SRRV under this Program.

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Redundancy program requires fair and reasonable criteria

In an earlier case, the Supreme Court ruled that redundancy exists when the work force is in excess of what is reasonably needed to meet the demands on the enterprise. A redundant position is one rendered superfluous by such factors as over-hiring of workers, decreased volume of business, dropping out of a particular product line or phasing out of a service activity previously undertaken by the business.

The employer, said the Court, must also comply with the following requisites to ensure the validity of a redundancy program: (1) a written notice to both the employees and the DOLE at least one month prior to the effectivity of the program;

(2) payment of separation pay of one-month salary for every year of service; (3) good faith in the abolition of the redundant positions; and (4) a reasonable and fair criteria in ascertaining what positions are to be declared redundant and accordingly abolished.

The Court emphasized that it is imperative for the employer to have a fair and reasonable criteria in implementing its redundancy program such as but not limited to (a) preferred status; (b) efficiency; and (c) seniority (G.R. 148195, 5/16/05, citing Asian Alcohol vs. NLRC, Panlilio vs. NLRC).

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Operating costs of ECCD programs deductible from taxable income

A 8980, the law creating the ECCD (Early Childhood Care and Development) System refers to the full range of health, nutrition, early education and social services programs that provide for the “holistic needs of young children from birth to age six (6) to promote their optimum growth and development.” These programs include among others: day care service in public and private pre-schools, kindergarten or school-based programs, early childhood education programs initiated by NGOs, churches, work-place related child-care programs, health centers and other similar projects.

In line with this policy of the state to promote the rights of children to survival, development and special protection, the BIR held that operating costs incurred by employers or corporations in supporting workplace-based or related ECCD programs are deductible from their taxable income. However, employers or corporations participating in such ECCD programs under RA 8980 are required to file under oath stating their gross income and expenses incurred during the year and a certificate showing the manner of operation and activities as well as sources of income to determine whether they actually incurred operating costs in support of their ECCD programs.

Books of accounts and other pertinent records of grantees of tax incentives shall be subject to examination by the BIR for purposes of ascertaining compliance with the conditions under which they have been granted tax incentives, and their tax liabilities, if any (BIR Ruling, 7/28/05).

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Compromise on civil status of persons is null and void  

A compromise agreement is a contract whereby the parties make reciprocal concerns to avoid litigation or to terminate one already commenced. Like any other contract, the terms and conditions of a compromise agreement must not be contrary to law, morals, good customs, public policy and public order. Any compromise agreement which is contrary to law or public policy is null and void, and vests no rights and imposes no obligation or any party.

Article 2035 (1) of the Civil Code provides that no compromise upon the civil status of persons shall be valid. Paternity and filiation or lack of the same, is a relationship that must be judicially established and it is for the court to determine its existence or absence. It cannot be left to the will or agreement of the parties (G.R. 141273, 05/17/05).

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Attorney’s fees may be disallowed

The discretion of the court to award attorney’s fees under Article 2208 of the Civil Code of the Philippines requires factual, legal and equitable justification. Without such justification, the award is a conclusion without a premise and improperly left to speculation and conjecture. The reason for the award must be stated in the text of the court’s decision. If the award is stated only in the dispositive portion of the decision the same shall be disallowed (G.R. 141311, citing Solidbank vs. Court of Appeals).

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Contract is merely voidable  

Lack of marital consent to the disposition of conjugal property does not make the contract void ab initio but merely voidable (G.R. 141323, 6/8/05).

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SC encourages amicable settlements  

Amicable settlement’s and compromises, the SC declared are not only allowed but actually encouraged in civil cases. A specific grant of immunity from criminal prosecution has also been sustained (207 SCRA 659).

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Certiorari as remedy

Even as the trial court’s order may merely be interlocutory and non-appealable, certiorari is the proper remedy when the same is rendered with grave abuse of discretion (Pefianco v. Moral).

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Requisite for valid compromise settlement

The assistance of the Bureau of Labor Relations or the Regional Office of the DOLE in the execution of a compromise settlement is a basic requirement without which the settlement is invalid (G.R. 158753, 6/8/05)

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Error of jurisdiction cannot be assailed by appeal under Rule 45

The petitioners invoked the appellate jurisdiction of the Supreme Court under Rule 45 of the Rules of Court, assailing the orders of the MTC (Metropolitan Trial Court) as having been issued with grave abuse of discretion amounting to lack of jurisdiction.

Constructive dismissal

To overturn a claim for constructive dismissal, the employer has the burden of proving that the transfer and demotion of an employee are for just and valid grounds such as a legitimate and genuine business necessity. The employer must show that the transfer is not unreasonable, inconvenient or prejudicial to the employee (G.R. 149974, 6/15/05).

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To determine whether the recourse of the petitioners is proper, the distinction should be made between an error of judgment and an error of jurisdiction. An error of judgment is one which the court may commit in the exercise of its jurisdiction, and which error is reviewable only by an appeal. An error of jurisdiction is one where the act complained of was issued by the court, officer, or quasi-judicial body without or in excess of jurisdiction or with grave abuse of discretion tantamount to lack or in excess of jurisdiction. This error is assailable only by the extraordinary writ of certiorari.

Considering that the petition assails the jurisdiction of the court a quo to issue the orders in question it falls within the ambit of a special civil action for certiorari under Rule 65 of the Rules of Court. However, petitioners’ direct resort to the Supreme Court disregarded the policy on hierarchy of courts.

Although the Supreme Court, the Court of Appeals, and the RTCs share concurrent jurisdiction to issue writs of certiorari, mandamus, prohibition, quo warrants, habeas corpus and injunction, such concurrence does not provide the petitioner freedom of choice of court forum. A direct invocation of the Supreme Court’s original jurisdiction to issue these writs is allowed only under special and important reasons therefor, clearly and specifically set out in the petition (G.R. 140959, 12/21/04).

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DNA testing does not violate right against self-incrimination

Petitioner contends that obtaining samples from him, i.e., from his body, for DNA testing violates his right against self-incrimination, citing Article 3 of the 1987 Constitution which provides that “no person shall be compelled to be a witness against himself.” The petitioner, declared the Supreme Court, ignores the Court’s earlier pronouncements that the privilege is applicable only to testimonial evidence.

As earlier ruled by the Court, the right against self-incrimination is just a prohibition on the use of physical or moral compulsion to extort communication (testimonial evidence) from a defendan--whether in a criminal case or paternity case--not an exclusion of evidence taken from his body when it may be material. Thus, a defendant can be required to submit to a test to extract virus from his body (People v. Alvis, 154 SCRA 513); the substance emitting from the body of the accused was received as evidence for acts of lasciviousness (U.S. v. Tan Feng, 23 Phil. 145); morphine forced out of the mouth was received as proof (U.S. v. Ong Siu Hong, 36 Phil. 735); and the court can compel a woman accused of adultery to submit for pregnancy test (Villaflor v. Summers, 41 Phil. 62), since the privilege applies only to evidence that is “communicative” in essence taken under duress (Herrera v. Alba, G.R. 148220, 6/15/2005)


 
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