Reorganization of Public Office

     A public office is created by the Constitution or by law or by an officer or tribunal to which the power to create the office has been delegated by the legislature. The power to create an office carries with it the power to abolish.  

     Abolition of a public office is usually done thru reorganization. Reorganization however, must be done in good faith to be valid. 

     This doctrine was again reiterated in the case of Enrique U. Betoy v. The Board of Directors, National Power Corporation, G.R. No. 156556-57, promulgated on October 4, 2011. In this case, employees affected by the privatization of the NPC led by Betoy filed a petition directly to the Supreme Court praying to declare the board resolutions providing separation benefits null and void. The petition basically questioned certain provisions of Rep. Act No. 9136 or the Electric Power Industry Reform Act of 2001.

     The Court in this case sustained the reorganization of the NPC involving the reduction of personnel, consolidation of offices, or abolition thereof by reason of economy or redundancy of functions. The court did not lend credence to the allegation of the petitioner that the reorganization was tainted with bad faith. 

     Bottom line, employees of agencies affected by reorganization should brace themselves for they have very little recourse in cases of valid reorganization. 

Special Commercial Law, Part IV - The Chattel Mortgage Law (Act 1508 in rel. to Arts. 1484, 1485, 2140 and 2141 of the Civil Code)

Preliminaries:

Definition of Chattel Mortgage

            Characteristics

            Distinguished for Pledge

           

A. Essential requisites

B. Formal requisites

C. Registration, when and where

E. After-acquired property

F. After-incurred obligation

G. Right of junior mortgagee

H. Foreclosure procedure           

I. Redemption

J. Claim for deficiency

1. General rule

2. Exception

3. Article 1484

Cases:

1.    Union Bank v. Juniat, et al., G.R. No. 171569, August 1, 2011

2.    Acme Shoe Rubber & Plastic Corp and Chua Pac v. Hon. Court of Appeals, Producers Bank of the Philippines and Regional Sheriff of Caloocan City, G.R. No. 103576, August 22, 1996

3.    Servicewide Specialists, Inc. v. Court of Appeals, Hilda Tee, and Alberto Villarica, G.R. No. 11408, November 19, 1999

Special Commercial Law, Part III - Trust Receipts Law

III. Trust Receipts Law (Pres. Decree No. 115)

           

            Purpose of the Law

            Trust Receipts, Definition

            Trust Receipt Transaction, Definition

            Parties to a Trust Receipt

            Importance of Trust Receipts

            Difference of Trust Receipts and Letters Of Credit

A. Definition/concept of a trust receipt transaction

1. Loan/security feature

2. Ownership of the goods, documents and instruments under a trust receipt

B. Rights of the entruster

1. Validity of the security interest as against the creditors of the entrustee/innocent purchasers for value

C. Obligations and liability of the entrustee

1. Payment/delivery of proceeds of sale or disposition of goods, documents or instruments

2. Return of goods, documents or instruments in case of sale

3. Liability for loss of goods, documents or instruments

4. Penal sanction if offender is a corporation

D. Remedies available

            Cases:

1. Development Bank of the Philippines v. Prudential Bank, G.R. No. 143772, Nov. 22, 2005

2. Landl & Company (Phil.) Inc., et al v. Metropolitan Bank, G.R. No. 159622, July 30, 2004

3. Anthony L. Ng v. People of the Philippines, G.R. NO. 173905, April 23,

2010

            

Special Commercial Law, Part II - Warehouse Receipts Law

II. Warehouse Receipts Law (Act No. 2137)

A. Nature and functions of a warehouse receipt

·       Definition and nature of Warehouse Receipts

·       Purpose of the Law

·       Who may issue Warehouse Receipts

·       Form and content of Warehouse Receipts

·       Effect of omission of any of the essential terms

·       Terms that cannot be included

1. To whom delivered

2. Kinds

3. Distinctions between a negotiable instrument and a negotiable warehouse receipt

4. Rights of a holder of a negotiable warehouse receipt as against a transferee of a nonnegotiable warehouse receipt

B. Duties of a warehouseman

·       Who is a warehouseman

·       Principal obligations of a warehouseman

·       Lawful excuses to deliver goods

·       In case of misdelivery

·       Altered receipts

·       Liability of warehouseman

C. Warehouseman’s lien

·       Extent

·       Loss and waiver of lien

·       Enforcement

Other topics:

D.  Negotiation and transfer of receipts

E.  Criminal offenses